'Iwad As A Requirement Of Lawful Sale: A Critical Analysis
This paper will argue that replacing ribOE with al-bayc does not mean that the latter can imply any form of sale (al-bayc) to justify Islamic legitimacy. Apart from the prohibition of uncertainties (gharOEr) in sale, the requirement of an equivalent countervalue (ciwaè) must also be met. Risk (ghurm) and liability (èaman) after sale and value-addition or effort (ikhtiyOEr) are the principal components of ciwaè. As such, any increase from sale must contain ciwaè, otherwise ribOE is implicated. In classical Islamic commercial contracts such as ijOErah, salam and muèOErabah, ciwaè is evident. However, the contracts of credit of al-murOEbaúah or al-bayc bithaman OEjil are widely used by Islamic banking practitioners. To prove Islamic legitimacy, this contract must show that the financiers assume the risk of ownership in making the sale. It must also show evidence that the seller is liable to the option of defect (khiyOEr alcayb). The same holds for bayc al-c¥nah and bayc al-dayn which are also widely used in Islamic money and capital markets in some Muslim countries.
Volume (Year): 9 (2001)
Issue (Month): 2 (December)
|Contact details of provider:|| Postal: Jalan Gombak, 53100 Kuala Lumpur|
Phone: (603) 6196 4770
Fax: (603) 6196 4850
Web page: http://www.iium.edu.my/enmjournal/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ije:journl:v:9:y:2001:i:2:p:187-202. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gairuzazmi Mat Ghani)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.