1. THE CONTRACT OF SALE FIQH MUAMALAT Copyright © 2011 MOHD Zulkifli Muhammad

2. 7/5/2016Fiqh Muamalat2 THE CONTRACT OF SALE Definition of Sale An exchange of one item for another, the exchange of property for property, transfer of corpus for a consideration (tamlik al-ayn bi iwad) Arabic term ‘bay’’ refers both to the activities of buying & selling- derived from the term ba’ (for arm) because one extends one’s arm to give or take

3. 7/5/2016Fiqh Muamalat3 THE CONTRACT OF SALE Legitimacy of Sale Sales are permissible: (a) Al-Quran “But Allah has permitted trade” (2:275), “But take witnesses whenever you make a commercial contract” (2:282), “But let there be among you traffic and trade by mutual good will” (4:29), “It is no crime for you to seek the bounty of your Lord” (2:198)

4. 7/5/2016Fiqh Muamalat4 THE CONTRACT OF SALE (b) Sunnah/ al-Hadith The Prophet (pbuh) was asked: “Which are the best forms of income generation ?”. He replied: “A man’s labor, and every legitimate sale”. Another saying is: “A sale must be by mutual consent”. Another Hadith, He said: “The truthful and honest trader is among the prophets, the righteous, and the martyrs” (al-Tirmidzi classified it as Hadith Hassan)

5. 7/5/2016Fiqh Muamalat5 THE CONTRACT OF SALE (c) Ijma’ Muslim have agreed that sales are permissible & this only stands to good sense as it allows each individual to meet his needs in cooperation with others trying to meet their own. Therefore, the general rule in sales (al-buyu’) are permissibility

6. 7/5/2016Fiqh Muamalat6 THE CONTRACT OF SALE Conditions of Sale 1)The party must be a person of sound mind or reason 2)There must be more than one party in the sale 3)There must be mutual consent of the panics 4)The acceptance must be consistent with the offer except where the acceptance is better than the offer

7. 7/5/2016Fiqh Muamalat7 THE CONTRACT OF SALE 5) There must be a unity of the session where the offer and acceptance are made- both parties are present- the session where the offer reaches to the knowledge of the offeree who is not present 6) The subject matter of the sale must be property of legal tender in view of the Shariah 7) The object of sale must be owned @ can be owned by the parties or the parties have legal authority over it

8. 7/5/2016Fiqh Muamalat8 THE CONTRACT OF SALE 8) The goods must exist or be possible to exist & possible to be delivered at the time of the sale 9) The object of sale must be known or can be ascertained by the seller and the purchaser 10) The object and the terms of sale must be stated clearly and be known to the parties 11) The sale should not be subjected to a certain period of time 12) The goods must not be subjected to the rights of others- mortgaged property

9. 7/5/2016Fiqh Muamalat9 THE CONTRACT OF SALE Cornerstones (Arkan) of Sale Contracts 1)The seller 2)The buyer 3)The language of the contract 4)The object of sale

10. 7/5/2016Fiqh Muamalat10 THE CONTRACT OF SALE Ethics of Sales: (a)The avoidance of excessive profits- Maliki’s = not more than 1/3 or 30% (b)Truthful and complete disclosure of information (c)Ease of conduct (d)Avoidance of swearing, even if truthful (e)Frequent paying of charity (f)Documentation & witnessing of all debts

11. 7/5/2016Fiqh Muamalat11 THE CONTRACT OF SALE Exceptions To The Rule Of Existence Or The Goods Muslim jurists were very strict on the sale of future goods which are not available at the time of the conclusion of sale- reason? The rule is clear & categorical: it is unlawful to sell sth for future very when it is not in the possession of the vendor- what Prophet (pbuh) said? But, there are a few exceptions to this rule which are tolerated by Muslim jurists- in what circumstances? But, what the legality of these contracts?

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