Contract In Islamic Jurisprudence

INTRODUCTION
Law of contract ensure the Part to private agreements that any
promises they make will be enforceable through the machinery of state. In
Islamic law rules regarding contracts are very strict, concept of fairness and
equality has to be upheld. Performance is must. Concept of fairness, justice
and equality has to upheld.

MEANING OF CONTRACT
According to Islamic law

The corresponding Arabic term for "contract" is Aqd" which means,

"conjunction or tie.”

According to Webster Dictionary

"A contract is a binding agreement between two parties which is legally

enforceable."

DEFINITION OF CONTRACT
(a) Juristic definition

I. According to Imam Abu Zahrah:

"Aqd is a collation between two points of view creating an obligation

or its transfer or its transmission".

II. According to Sir Abdur Rahim:

"A Contract is the Conjunction of the elements of disposition, namely offer

and acceptance
(b) Federal Shariat

Federal Shariat court is one of its decisions held that

"A valid contract is one which is the result of free consent of parties
and must not be anything prohibited by Islamic Shariat"

CONCEPT OF CONTRACT IN ISLAMIC LAW

In Islamic law contract is an agreement which requires that there should be
two parties, where one party should make a proposal and the other party
should accept it, that the mind of both the parties must agree that is their
declaration must relate to the same matter and the object of the contract must
be to produce a legal result

➢ A contract of sale is only valid contract with offer and acceptance in

Islamic Law
➢ A contract of sale is not valid contract without offer and acceptance in
Islamic Law.

OBJECT OF CONTRACT:
" The main object of contract or Aqd is any statement or word that has
the effect of legally binding a person to fulfill an obligation or to perform a duty."

Types of Contracts Under Islamic Law:

There are two types of Contracts:

I. Written Contracts
II. Unwritten Contracts
IMPORTANCE OF CONTRACT ACCORDING TO QURAN:

> Quran Says,

"O Ye who believe fulfill your agreements"

IMPORTANCE OF COTRACT ACCORDING TO SUNNAH:

Hazrat Muhammad (S.A.W) Says,

"He who has no respect for keeping promises, does not possess deen”

ESSENTIAL INGREDIENTS OF CONTRACT UNDER ISLAMIC LAW

Essential requirements or main constituents of. a valid contract

under Islamic law is following.

OFFER (IJAB)

An offer is a proposal, which is made by one person or party offering

the sale of a good/object or offering the other party to form a legally binding
contract an offer is called ljab in Islamic law.

(i) ljab

Reward first spoken for making a disposition of property and

disposition is proved by it. Simply word "offer is an expression of willingness to
come to an agreement or to be binding by some obligation.

(ii) Kinds (Modes) of offer

Offer is of the following kinds

(a) Express offer

(b) Implied offer

(ii) Termination of offer

In the following cases an offer is terminated under Islamic laws.

 (a) termination by revocation

(b) Termination by lapse of time

(C) Termination by failure to fulfill conditions

ACCEPTANCE (QABUL)

Acceptance is the willingness of the person to whom an offer is made enter in

legally binding contract

Conditions for valid acceptance

Valid acceptance the following are the conditions

(a) It must be in conformity to the terms of offer

(b) It must be given at the same time when offer is made

(c) It must be communicated with in a reasonable time

CONSIDERATION
In Islamic laws the equivalent word for consideration is Sabab. The
consideration is the act forbearance promise or payment given by one party in
turn of the act or promise of another Islamic law specifies following four
essentials to constitute a valid contract.

Faa'lia: A valid contract requires that these must be two parties involved

Mad'dia: It is essential to constitute a valid contract that one party should

make an offer or proposal and the other should accept it Therefore Mad’dia
pertains to the essence.

Suria: The parties must agree to the same matter in the same sense.

Ghayia: The object should be producing a legal result.

COMPETENCE OF PARTIES

Under Islamic law if a person entering into a contract, not possesses

the necessary competence the contract would be Void Therefore to form a
legally valid Contract the parties must be competent to contract Under Muslim
law following are the persons competent to contract

➢ A person who has attained the age of maturity

➢ A person who is not insolvent
➢ A person who is not disqualified by law.
➢ A person of sound mind i.e., Idiots. lunatics etc. are not Competent

FREE CONSENT OF THE PARTIES

Competent parties (persons) must have a free. They must agree on the
same thing and in same sense and should not give their assent under the
following situation.

1. Coercion
2. Mistake
3. Fraud
4. Undue influence
5. Misrepresentation

LAWFUL SUBJECT MATTER

In Islam, the contract should be regarding permissible things. A contract

regarding trade of wine is not valid contract in Islam.
CERTAINTY

If there is any uncertainty or a dignity regarding the subject matter of

the contract or regarding its quantity and quality then it is not valid contract in
Islam.

CONCLUSION
In Islamic law, contract of law ensures the parties to private
agreements that any promises they make will be enforceable through the
machinery of the state. Islamic law attached great importance to the promises
between the parties. In case promises are not performed faithfully it will result
in great confusion and mistrust. According to Islamic law for valid contract
parties must be competent for valid contract.