Comparison of Principles of Sale Contract Between Conventional and Shari’ah Laws

In: Other Topics

Submitted By fikriahmad91
Words 6604
Pages 27
KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

‘Comparison of Principles of Sale Contract between Conventional and Shari’ah Laws’

LAW 3512

COMMERCIAL LAWS

(SECTION 3)

Any form of cheating or attempt to cheat is a serious

Offence which may lead to dismissal

Introduction

We are blessed as a human being on the earth as the only creature created by God who has the ability to think upon choosing between alternatives. Humans are associates with many labels and beliefs that they uphold throughout their life. Major differences of choosing between alternatives would be based on their framework of thinking mostly derive from their religions or beliefs. Speaking from Malaysia context, Islamic belief would be a stronger influence for Malaysian citizens before embarking into any decision. Although, Malaysia is known as the Islamic state but Malaysia still uphold conventional laws as the supreme laws for the state over Islamic Laws which ruled by the Federal Court. Islamic Laws would only covers family laws, inheritance and few specific issues among muslims[1]. We would further discuss on the framework of sale contract from Islamic and conventional point of view.

Take a look around and it is apparent in our daily lives that transactions need to occur for us to carry on sustaining our needs and wants. As humans we ought to want things and we need to have goods that are essential for our daily lives in order to carry on living our lives in ease or in comfort. For an example, we would like to have a phone, a car, nice looking shoes, clothes and many nice things; on the other hand we need to have goods such as food, water and shelter. In order to possess such items, transfer of ownership must take place lawfully and in accordance with various conditions as stipulated by the Sharia since we are now talking from the Islamic…...

Similar Documents

Aqd' or Contract

...INTRODUCTION The contract law principles in Shariah Law are not different from English contract law principles. In English law, ‘contract is an agreement enforceable by law’. According to Islamic law, a promise may not be legally enforced although it is strongly recommended by religious and moral values to be fulfilled.[1] In Islamic law, contract is known as ‘aqd’ which means tie or bond. It means a contract binds the parties together. From the definition, the term ‘aqad is more or less of the equivalent of the technical term of contract in Western Jurisprudence. However, ‘aqad does not necessarily involve agreement (which is a necessary element in a conventional contract) because the term is also used to describe a unilateral juridical act which is binding and effective without the consent of the other party. Islam emphasizes on fulfilling contractual obligations. Allah says in the Quran, “O ye who believe, fulfil all of your obligations”[2] and also similarly in this surah which is stated “…So fulfil your engagement with them to the end of their term, for Allah loves the righteous”[3] Under Islamic law, to be a valid contract, there must have some elements in the contract. Those elements are sighah (ijab and qabul), contracting parties and subject matter. The first element is sighah (ijab and qabul) or offer and acceptance. There are three kinds of offer which are verbal offer (kalam), offer by conduct (‘amal’) and offer in......

Words: 3271 - Pages: 14

Contract Law

...wants a refund from the shop owner. However, the shop owner refused to pay back Billy. In this case it would be a voidable contract because the law allows that party to withdraw from the agreement if there is misrepresentation or fraud occurs in the contract. For example, Billy wanted to a refund from the shop owner because he gave wrong information to Billy as the GEZZ watch was made in Switzerland but actually made in China. Elements that take place in this case are offer, acceptance, intention to create legal relation, and consideration. 2.0 Offer According to (Quinn, 2007), the person who make offer called ‘offeror’ and person to whom the offer made is known as ‘offeree’. Offer can defined as a communication that treated as an offer if it specify the terms where ‘offeror’ is prepared to make an agreement to the ‘offeree’. Besides that, an offer refers to a promise to be bound on certain specific terms. For example, Ali is selling his music player to Abu. This situation shows that Ali is offering his music player to Abu. Offer is promised to be bound in a certain specific terms (Quinn, 2007 ). In Section 2 (a) of the Contract Act 1950 refers that an offer is made when a person suggest to another person with his willingness to act and with the target to obtaining the assent of the other. According to Contract Act, an offer is something that is capable of being converted into an agreement by acceptance. Case (Carlill v Carbolic Smoke......

Words: 2738 - Pages: 11

Contract Law

...Contract Law (Mutuality of Consideration) November 7, 20013 SUMMARY OF FACTS Bernie is selling his 2006 Ford Fusion. Vivian makes an offer to buy Bernie’s car for $12,000. Bernie and Vivian meet and agree on the selling price of $12,500. Vivian needs more time to come up the money for the car. Bernie agrees to give Vivian time to come up with the money to purchase his car. Bernie requires Vivian to put down a $1,000 deposit and pay the full balance by March 31st. Bernie drafts up an agreement; and in the agreement and it is stated that if the buyer breaches the agreement, the seller may keep the buyer’s deposit, but the shall be limited to this remedy and only this remedy. Likewise, is the seller breaches the agreement, the seller must refund the purchaser’s deposit, but the parties shall be limited to this remedy and only this remedy. Vivian reads and signs the agreement. Later Vivian realizes that she is not going to be able to get the money together by the deadline. She call’s Bernie to tell him that she is pulling out the deal. Bernie says he is going to keep the deposit. Vivian sues for her deposit claiming there was no mutuality of consideration for the agreement and the contract was therefore void. ISSUE Under Virginia law is their mutuality of consideration when the seller could back out of the agreement by giving the purchaser her deposit back. Rule |Sayres v. Wheatland Group |L.L.C. | OVERVIEW: Defendants sought to......

Words: 2144 - Pages: 9

Contract Law

...Mutual Mistakes in Contract Law Caryn Williams Southern New Hampshire Business Law MBA--610-X4247 Geri Drelling July 13, 2014 Mutual Mistakes in Contract Law From a personal perspective, this situation is somewhat close to home. I worked as car sales professional for a year and learned many things about the process. In my opinion, Mr. Hartly should have done a bit more research about the models available. In my experience, the consumers I dealt with were more knowledgeable about the products being purchased. In many cases, the consumers would know more about the cars than I would. The internet provided the specifications about the engine and the proper pricing of the vehicle. However, when the consumer was negotiating the pricing and telling the salesperson what he wanted then the specific engine issue should have been addressed right away. As a matter of fact, the specifications of the vehicle are part of the sales presentation and should be given to consumer in the initial discussion. With my knowledge of car contracts, the sales contract is not able to be rescinded due to lack of information. The specifications of the car are on the sticker placed in the window and the information is fully disclose and displayed for the consumer. Contractual capacity is the ability to understand that a contact is being made and to understand its general meaning (Twomey ,2013). However, the fact that a person does not understand the full legal meaning of a contract does not......

Words: 677 - Pages: 3

Contract Law

...Cover Sheet Qualification | Unit Number and Title | Pearson BTEC Level 5 HND Diploma Business (Accounting) | Unit 5: Aspects of Contract and Negligence for BusinessUnit Code: Y/601/0563Credit Value: 15 Credits | Student Name | Assessor Name | Mukaram Khan Swati | Salman Haider | Date Issued | Completion Date | Submitted On | Validity | 7th October,2013 | 4th November,2013 | | 1st Oct, 2013-31st Jan,2013 | Assignment Title | Contract and Negligence | Assignment Number | 05AOCANFB- Y/601/0563-13 PKISL7002 | Hand In Policy You must complete this assignment on time. If u experience difficulties, you must inform your tutor accordingly. Late Work Policy Consideration will be given to students who have valid reasons for late submission (eg, Illness) Plagiarism In case of plagiarism, college regulations will be applied. You must declare that this assessment is your own work by signing the following statement: Learner Declaration | I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.Student Signature: Date: | Table of Contents Acknowledgement 6 Research Method 7 Aims and Objectives 8 Literature Review 9 Abbreviation List 10 Introduction 11 Task 1 12 Essential Elements of a Contract 12 1. Offer and Acceptance 12 2. Lawful Consideration 12 3. Intention to Create Legal Relationship 12 4. Capacity of......

Words: 5420 - Pages: 22

Contract Law

...|Coursework Header Sheet |[pic] | |186606-24  | | |[pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] | | |Course |LAW1091: Business & Co Law |Course School/Level |BU/UG | |Coursework |Business and company Law |Assessment Weight |100.00% | |Tutor |MF Ottley |Submission Deadline |01/12/2011 | [pic] |Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented | |elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the | |University's Regulations regarding Cheating and Plagiarism. | [pic] 000613042    [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic]    Han Tun  |Tutor's comments   ...

Words: 2059 - Pages: 9

Contract of Law

...INTRODUCTION TO THE LAW OF CONTRACT DEFINITION  A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock: “A promise or set of promises which the law will enforce”. The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default.  CLASSIFICATION  Contracts may be divided into two broad classes:   1.    Contracts by deed A deed is a formal legal document signed, witnessed and delivered to effect a conveyance or transfer of property or to create a legal obligation or contract. 2. Simple contracts Contracts which are not deeds are known as simple contracts. They are informal contracts and may be made in any way – in writing, orally or they may be implied from conduct.   Another way of classifying contracts is according to whether they are “bilateral” or “unilateral”. 1. Bilateral contracts A bilateral contract is one where a promise by one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods. 2. Unilateral contracts A unilateral contract is one where one party promises to do something in return for an act of the other party, as opposed to a promise, eg,......

Words: 54394 - Pages: 218

Contract Law

...Contract Law Knowledge of the basic principles of the law of contract is useful to readers not only for examinations but also in their everyday lives: Most, if not all of us, have entered into contracts at some point of time –we enter into contract when we board a bus, go shopping or go to work. Contracts are an integral part of our daily lives. They are constantly being entered into by individuals with other individuals or business, as well as businesses with other businesses, to sell or transfer property, to provide and receive service and other rights and obligations created. The sale and purchase of goods is based on sales contracts, the hiring of employees is based on employment contract; the lease of a property or house is based on a rental or lease contract; and so the list goes on. Business cannot exist without enforceable contracts. Although the terms “contract” and “agreement” are often used to mean the same thing, actually the term “contract” can be distinguished from the term “agreement”. Every contract involves an element of agreement but not every agreement will results in a contract recognizable by law. This is because sometimes the parties to an agreement may not intend to create legal relations; for example, agreements on social arrangements. Some agreements also do not result in contracts because one or more of the principles governing contractual relations may not have been satisfied; for example, when the purpose of the agreement is illegal, or there...

Words: 830 - Pages: 4

The Comparison Between Islamic Loans and Conventional Loans in Relation to Market Power

...The German University in Cairo Faculty of Management Technology Research Methodology “The Comparison between Islamic loans and Conventional loans in relation to Market Power” Submitted By Ahmed el-Farnawany 16-2641 Tutorial Number: T13 Professor: Raghda El-Ebrashi Teaching Assistant: Hadeer Shawky January, 6th, 2011 Table of contents 1. Introduction 1 2. Literature Review 2 2.1 Conventional loans 2 2.1.1 Interest and loan pricing 2 2.1.2 Types of conventional loans 3 2.1.2.1 General loan types 3 2.1.2.2 Business loans 4 2.1.2.3 Consumer loans 4 2.2 Islamic loans 5 2.2.1 Interest prohibition. 5 2.2.1.1 Riba (Usury) 5 2.2.1.2 Why is riba prohibited 6 2.2.2 Types of loans in Islamic banking 6 2.2.2.1 Qard al-hasan 7 2.2.2.2 Ijara 7 2.2.2.3 Murabaha 8 2.2.2.4 Musharaka 8 2.3 Effect of Islamic loans objective and economic incentives on its market power in relation to conventional loans 9 2.3.1 The effect of Islamic Loan Objective on its Market Power 9 2.3.2 The effect of Islamic Economic Incentives on its Market Power. 10 2.4 Research gap 11 3. Methodology 12 4. References 17 1. Introduction Islamic economics and Islamic banks have grabbed the attention of millions of people around the world. That is because Islamic banks have assets that can be estimated as 300 billion USD around 75 countries in the world with 15 % annual...

Words: 5400 - Pages: 22

Comparison Between Russian and Chinese Marriage Law

...Marriage has always been associated with something positive and solemn. It signifies the new level of relationship that embraces the man and woman. But it does not only deal with the festive ceremonies, but also obliges the newly wedded with the commitments that they have to follow and implement. Those commitments and responsibilities are prescribed by marriage code. And it is actually appears to be one of the most significant laws in the each country. And it plays an enormous role in China, since its appearance was even before the constitution of the newly founded PRC. The main reason for the importance of this code is the rapid population growth that should be controlled somehow. The marriage law in Russia also plays a vital role but there are some other aspects that might be definitely taken into consideration. Let us find out what are those special features and differences that occurs between Russian and Chinese marriage law. First of all, you should pay a great attention to the historical differences and characteristics. Even though globalization affected those countries dramatically, it is of great significance to discover some traits intrinsic to the history of this issue. That is because at least something from history affects the development of the legislature and might even influence the contemporary life, so, the historical express analysis is pivotal. Let us begin with the thing that made a dramatic impact in the history of China. “Three obedience and four......

Words: 1676 - Pages: 7

Business Law - Explain the Rights of a Partner Distinguish Between the Following (I) Succession and Assignment. (Ii) Contract of Indemnity and Contract of Guarantee

...REPORTS AND THESIS aravind.banakar@gmail.com ARAVIND - 09901366442 – 09902787224 Business Law 1. (a) Discuss the term ‘Continuing Guarantee’. How can it be revoked? b) State briefly the rights and obligations of a bailee. 2. (a) What do you understand by the term Implied ‘Authority of a partner’? (b) Enumerate the acts which are not covered under implied authority. 3. (a) What are the rights and duties of a minor in relation to partnership business? (b) Distinguish between -- (i) Sub-agent and Substituted Agent (ii) Sale, Bailment and Pledge 4. (a) Explain the rights of a partner. (b) Distinguish between the following: (i) Succession and Assignment. (ii) Contract of Indemnity and Contract of Guarantee. 5. Write short note on. i) Non-registration of a firm. ii) Capacity of Contract iii) Kinds of Bailment. iv) Anticipatory breach of a Contract. 6. a) When is a Surety Discharged from Liability by the conduct of the creditor. b) Describe the rules relating to passing of property in the sale of goods. 7. a) What is an illegal agreement? State the effects of illegality. b) What is ‘Supervening Impossibility’? What are its effect upon the contract? c) What are the remedies available to the buyer when goods in wrong......

Words: 363 - Pages: 2

Business Law - State the Principles on Which Damages Are Assessed for Breach of Contract. Describe the Law Relating to the ‘Right of Resale’ Available to an Unpaid Seller in the Sale of Goods Act, 1930

...REPORTS AND THESIS aravind.banakar@gmail.com ARAVIND - 09901366442 – 09902787224 Business Law 1. (a) Discuss the term ‘Continuing Guarantee’. How can it be revoked? b) State briefly the rights and obligations of a bailee. 2. (a) What do you understand by the term Implied ‘Authority of a partner’? (b) Enumerate the acts which are not covered under implied authority. 3. (a) What are the rights and duties of a minor in relation to partnership business? (b) Distinguish between -- (i) Sub-agent and Substituted Agent (ii) Sale, Bailment and Pledge 4. (a) Explain the rights of a partner. (b) Distinguish between the following: (i) Succession and Assignment. (ii) Contract of Indemnity and Contract of Guarantee. 5. Write short note on. i) Non-registration of a firm. ii) Capacity of Contract iii) Kinds of Bailment. iv) Anticipatory breach of a Contract. 6. a) When is a Surety Discharged from Liability by the conduct of the creditor. b) Describe the rules relating to passing of property in the sale of goods. 7. a) What is an illegal agreement? State the effects of illegality. b) What is ‘Supervening Impossibility’? What are its effect upon the contract? c) What are the remedies available to the buyer when goods in wrong......

Words: 363 - Pages: 2

Business Law - State the Principles on Which Damages Are Assessed for Breach of Contract. Describe the Law Relating to the ‘Right of Resale’ Available to an Unpaid Seller in the Sale of Goods Act, 1930.

...mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Business Law 1. (a) Discuss the term ‘Continuing Guarantee’. How can it be revoked? b) State briefly the rights and obligations of a bailee. 2. (a) What do you understand by the term Implied ‘Authority of a partner’? (b) Enumerate the acts, which are not covered under implied authority. 3. (a) What are the rights and duties of a minor in relation to partnership business? (b) Distinguish between -- (i) Sub-agent and Substituted Agent (ii) Sale, Bailment and Pledge 4. (a) Explain the rights of a partner. (b) Distinguish between the following: (i) Succession and Assignment. (ii) Contract of Indemnity and Contract of Guarantee. 5. Write short note on. i) Non-registration of a firm. ii) Capacity of Contract iii) Kinds of Bailment. iv) Anticipatory breach of a Contract. 6. a) When is a Surety Discharged from Liability by the conduct of the creditor? b) Describe the rules relating to passing of property in the sale of goods. 7. a) What is an illegal agreement? State the effects of illegality. b) What is ‘Supervening Impossibility’? What are their effects upon the contract? c) What are the remedies available to the buyer when goods in...

Words: 365 - Pages: 2

Business Law - State the Principles on Which Damages Are Assessed for Breach of Contract. Describe the Law Relating to the Right of Resale Available to an Unpaid Seller in the Sale of Goods

...09902787224 BUSINESS LAW 1. (a) Discuss the term ‘Continuing Guarantee’. How can it be revoked? b. State briefly the rights and obligations of a bailee. 2. (a) What do you understand by the term Implied ‘Authority of a partner’? (b) Enumerate the acts which are not covered under implied authority. 3. (a) What are the rights and duties of a minor in relation to partnership business? (b) Distinguish between -- (i) Sub-agent and Substituted Agent (ii) Sale, Bailment and Pledge 4. (a) Explain the rights of a partner. (b) Distinguish between the following: (i) Succession and Assignment. (ii) Contract of Indemnity and Contract of Guarantee. 5. Write short note on. i) Non-registration of a firm. ii) Capacity of Contract iii) Kinds of Bailment. iv) Anticipatory breach of a Contract. 6. a) When is a Surety Discharged from Liability by the conduct of the creditor. b) Describe the rules relating to passing of property in the sale of goods. 7. a) What is an illegal agreement? State the effects of illegality. b) What is ‘Supervening Impossibility’? What are its effect upon the contract? c) What are the remedies available to the buyer when goods in wrong quantity delivered to him? 8. (a) State the principles on which......

Words: 344 - Pages: 2

Contract Law

...contract is the agreement entered into by two or more persons with the intention of creating a legal obligation or obligations. The validity of the contract of this nature can be ascertained by looking around the terms of the contract and the extent to which they are binding on the individual parties, the actual interpretation of the nature of the contract, whether it was a contract of sale or of exchange and the relative interpretations of similar cases in relent cases, law journals and statutes. From a general point of perspective, the contract can be regarded as valid since the agreement was verbally made and confirmed by the writing down of the general terms sealed by signatures of the seller and the buyer as was in the case between Dold and Bester, in which their contract was reduced by writing down the terms of the contract on a piece of scrap paper. The law states that no alienation of land after the commencement of this section shall, subject to the provisions of section 28, be of any force or effect unless it is contained in a deed of alienation signed by the parties thereto or by their agents acting on their written authority. In the case of David and Zindzi, the validity of the contract can be enforced since the seller (David) had clearly demonstrated his intent of selling his house by signing it down on the serviette and the buyer (Zindzi) also clearly demonstrated his willingness to acquire the property on offer. The terms of the contract agreed on the......

Words: 516 - Pages: 3

Alte Berufe | DRAMAtical Murder | 5.2 /10 0 630 Pay the Ghost (2015)