Requirement For Valid Contract To Shariah Law Contract Law Essay

August 26, 2017 Law

The definition of contract in Islamic point of position is “ an look of the matching between a positive proposal made by one of the contractors and the credence of the other contractor in a manner which has an impact on the topic of the contract. Shariah commercial jurisprudence in Muslim legal term known as fiqh muammalat, constitutes an of import subdivision of jurisprudence covering with issue of contract and the legal effects originating from a contract that can be valid, null, or evitable contract. For a valid contact in shariah jurisprudence, certain conditions are to be met. It can be appears as a valid contract bases on several elements of valid contract which are offerer and offeree, offer and credence, and the capable affair and the consideration. As for the parties to a contract, they must be lawfully capacity to come in the contract. The capableness to transact in Islamic jurisprudence is measured by two facets, viz. prudence and pubescence.

The first component of valid contact in shariah jurisprudence is offeror and offeree. As for the parties to a contract, they must be lawfully competent to come in into a contract. The competency to transact in Islamic jurisprudence is measured mostly by two facets, viz. prudence and pubescence as revealed in surah al-Nisa ‘ poetry 6 “ Observe the orphans through proving their abilities until they reach the age of matrimony ; so if you find them capable of sound opinion, manus over to them their belongings “ . The most of import portion of each party is the possess capacity. It has been describe with capacity ( ahliyyah ) harmonizing to Shari’ah ‘Islamiyyah. Therefore, the Islamic bookman defined the capacity as a quality, which makes a individual qualified for geting rights and undertaking responsibilities and duties.

The 2nd component of valid contact in shariah jurisprudence is offer ( ‘ijab ) and credence ( qabul ) . Offer means a specific action that reflects consent or willingness of its shaper that presumed from the word foremost uttered by one of the catching parties. Offer may be verbal or in composing. Under sharia law jurisprudence, word qabul ( credence ) is used to stand for a statement expressed bespeaking acquiescence to the ‘ijab ( offer ) . Muslim Jurist takes two different attacks construing qabul. The bulk position is that qabul is made by the purchaser or the individual to whom the capable affair of the contract is addressed irrespective as to whether this comes foremost or subsequently. Whereas the Hanafi school holds a more flexible attack when qabul is defined as the word uttered subsequently matching to the footings of a subsisting subsequently. And it may be expressed by either the marketer or the purchaser. This is slightly similar to common jurisprudence. Offer and credence besides may be concluded by agencies of representatives or modern communicating systems such as the telephone, teletypewriter, facsimile, e-mail and missive.

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The 3rd component contract in the sharia law jurisprudence is capable affair ( mahal al-‘aqd ) . Mahal al-‘aqd must be mal ( belongings or wealth ) mal is defined as something which can be secured for usage at the clip of demand. The term mal here is by and large translate as belongings and the word belongings is applicable merely to objects which have a perceptible being in the outside universe that is to state things sold which is a thing fixed and separately perceptible as designated at the sale. A contract has to hold a topographic point or mention ( mahal al-‘aqd ) which is the capable affair of the contract. The topographic point of mention in contract is its capable affair which is the topographic point of application of its regulation and which does non travel against its intent. Islamic jurisprudence focused on the lawfulness, being, deliverability and precise finding. Lawfulness requires that the object must be lawful, that is something, which is allowable to merchandise and must be of legal value that is, its capable affair and the implicit in cause “ sabab ” must be lawful. The parties to a contract must lawfully have the object “ qabd ” . The issues of being presuppose that the object of a contract must be in being at the clip of contract. The object must be capable of certain bringing and it must be determined exactly as to its kernel, its measure and its value. Harmonizing to

Muslim law, the capable affair of a contract could be material belongings as in allowing sale and mortgage and benefit as in rent. In instance the topic ‘s nature was non of the sort that admits this sort of dealing, so the dealing and the contract are nullified. Therefore, a contract involves sale of endowed belongings is nugatory, albeit a contract affecting rent of such belongings is right and acceptable. There are several conditions for capable affair ; ( I ) the capable affair must be, ( two ) the capable affair can be delivered, ( three ) the topic can be ascertained, ( four ) suitableness of the capable affair.

As for the consideration of monetary value, Islamic jurisprudence does non curtail it to a pecuniary monetary value, but it may be in the signifier of another trade good. The Islamic prohibition against uncertainness requires that the monetary value must be in being and determined at the clip of the contract and can non be fixed at a ulterior day of the month with mention to the market monetary value, nor can it be left capable to finding by a 3rd party.

The 4th component of valid contract in syariah jurisprudence is legal capacity ( ahliyyah ) . Capacity is one of the elements of a contract for the intent of geting legal rights and common benefits and to ease the infliction of the duties on the parties. The right to contract and the duties can merely be where there is capacity to contract. In syariah jurisprudence, no individual can validly reason a legal dealing without first holding attained physical and rational adulthood that being the equivalent of bulk to bask full capacity, a individual, should achieve physical pubescence and bask sound judgement known besides as prudence in his or her judgement.

Based on the demands for a valid contract that had stated before, there are some illustrations of instances that related to sharia jurisprudence.

Nash V Inman ( 1908 ) 2 KB 1


Nash is a seamster who had entered into a contract to provide Inman who is a Cambridge undergraduate pupil with among other things, 11 illusion vests and he wasA a minor. Unfortunately for the seamster, nevertheless, it was further decided that they were non necessary, as he already had sufficient vesture that from his male parent. When Nash claimed the cost of these apparels Inman wanted to trust on deficiency of capacity and succeeded at first case. Minor leagues are merely under a legal duty to pay for things necessary for their care although even so they will merely be required to pay a sensible monetary value for any necessities purchased. So, no contract was enforceable.

Held ( Fletcher-Moulton LJ )

“ An baby, like a moonstruck, is incapable of doing a contract of purchase in the rigorous sense of the words ; but if a adult male satisfies the demands of the baby or moonstruck by providing to him necessities, the jurisprudence will connote an duty to refund him for the services so rendered, and will implement that duty against the estate of the baby or moonstruck.

The suspect ‘s male parent proved the babyhood, and so proved that the suspect had an equal supply of apparels, and stated what they were. That grounds was un-contradicted. Not merely was it non contradicted by any other grounds, but there was no cross-examination be givening to agitate the recognition of contradicted grounds the justice came to the decision. ”

[ ( Julie Clarke ) . ( 2010 ) . Retrieved from. hypertext transfer protocol: // ]

Bell V Lever Brothers Ltd [ 1932 ] AC 161 December 15 1931


This instance is about the errors that have done by Lever Brothers Ltd. Bell was pull offing manager of a Nigerian subordinate of Lever Brothers. The company was engaged in a restructuring of its subordinates and wished to end Bell ‘s employment. Bell agreed to vacate in return for a ‘golden handshaking ‘ of ?30,000. The payment was in portion acknowledgment of the past services rendered by Bell.

After his surrender, Lever Brothers discovered that Bell had been unlawfully engaged in bad activities on his ain history, which would hold entitled Lever Brothers to disregard him without compensation. As a consequence, Lever Brothers Ltd is being sued by Bell for the return of the ?30,000.

Lord Atkin stated:

“ … the regulations of jurisprudence covering with the consequence of error on contract appear to be established with sensible clarity. If mistake operates at all it operates so as to negative or in some instances to invalidate consent. The parties may be mistaken in the individuality of the catching parties, or in the being of the subject-matter of the contract at the day of the month of the contract, or in the quality of the subject-matter of the contract. These errors may be by one party, or by both, and the legal consequence may depend upon the category of error above mentioned. Thus a misguided belief by A. that he is undertaking with B. , whereas in fact he is undertaking with C. , will veto consent where it is clear that the purpose of A. was to contract merely with B. So theA agreementA of A. and B. to buy a specific article is null if in fact the article had perished before the day of the month of sale. ”

[ ( Igor Sterzhantov ) . ( 2007A – 2011 ) . Retrieved from hypertext transfer protocol: // ] .

Mohri Bibee vs. Dharmodas Ghose I.L.R cal. 539


In this instance, a minor Dharmodas mortgaged his house in favor of Brahm Dutt, hubby of Mohri for a loan of Rs. 20,000, out of which the mortgage holder ( money-lender ) paid the child a amount of Rs. 8,000. Subsequently, Dharmodas sued for puting asode the mortgage, saying that he was minor when he executed the mortgage. The Privy Council held that the mortgage was null and, hence, it was cancelled.

Held ( Privy Council )

The tribunal besides did non accept the usurer ‘s petition for the refund of the sum advanced to the child as portion of the consideration for mortgage. The suspect claimed that Dharmodas had declared to be a major when the contract was made, and if the declaration was false, he ( the suspect ) was entitled under subdivisions 64 and 65 to have back the money he had advanced to Dharmodas, but the Privy Council set aside that supplication and observed that Section 64 and 65 are non enforceable in instances where no contract exists, and a contract did non be since it was made with a child.

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