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The Orphans Fund Development Foundation has Canceled the Penalty Clause
Author : The General Iftaa` Department
Date Added : 05-07-2023

The Orphans Fund Development Foundation has Canceled the Penalty Clause

 

In reference to what was published on the website of the General Iftaa` Department and the fatwas it issued prohibiting the penalty clause in Murabaha contracts, the Orphans Fund Development Foundation has responded by deleting the sixth clause from its Murabaha contracts, which include the penalty clause. This was included in a letter from the Director of the Foundation Dr. Faisal Al-Hiary- (Number MA / 1/4/2290), (1st of June, 2009)-addressed to the Grand Mufti. The letter reads as follows:

 

"Since the sixth clause in the Murabaha contract used by the Foundation has not been activated from the time the Foundation started providing Murabaha services in 1988, and in order to avoid any ambiguity that may arise in the Murabaha contract, I would like to inform you that the management of the Foundation has decided to delete the sixth clause and adhere to the general rules stipulated in the Civil Code, in this regard."

 

The Grand Mufti thanked the Director of the Foundation, saying:

"I thank you for deleting the sixth clause from the Murabaha contract used at your institution, and I hope that Allah will reward you well for that. You have removed an obstacle for those who deal with your noble institution, which is keen on earning halal/lawful profits. Your institution is the first among institutions to take into account the provisions of Islamic Law, and I hope that other financial institutions will follow your example, and to you is the reward of being the first good doer in this regard."

 

Afterwards, the Director of the Foundation attached a copy of the new Murabaha contract to his letter, which showed that it was free of the penalty clause and was acceptable from the standpoint of Sharia. However, the employee in charge of executing the Murabaha contract is responsible for applying the Sharia conditions and not neglecting them. And Allah Almighty knows best.

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Summarized Fatawaa

What is the ruling on performing istinja' with perfumed tissues or a tissue moistened with water?

Performing istinja' with perfumed or moistened tissues is not sufficient if they are not dry, due to the moisture on them reaching the impurity, which increases its spread rather than reducing it. Then, to remove the impurity, one must use pure water. And Allah the Almighty knows best.

What is the ruling on performing the Duha (forenoon) prayer before its time has begun, because I go to school early in the morning?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
The Duha (forenoon) prayer is not valid if performed before its time has begun. Its time starts when the sun has risen to a noticeable height, that is, approximately fifteen minutes after sunrise, and it ends when the sun reaches its zenith (zawāl), shortly before the Dhuhr (noon) prayer. It is stated in Mughni al-Muhtaj (Vol.1/p.455): “Its time is from the rising of the sun [to a spear’s height] until the zenith.”
Accordingly, the Duha prayer is not valid if offered before the sun has risen, and its time remains open until just before Dhuhr. It may be performed at any time at school, during the break between classes or during recess. And Allah Almighty knows best.

What is the ruling on Jumu‘ah (Friday) prayer for a traveler, and what are the conditions for it to be waived from him?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
Jumu‘ah (Friday) prayer is not obligatory upon a traveler, whether on a long or short journey, provided that — according to the Shāfi‘ī school — he departs from his place of residence before the time for Fajr prayer begins, and that he does not intend to stay in the place he travels to for four days or more, excluding the day of arrival and the day of departure. If he intends to stay longer than that, he may not make use of the travel concession simply by arriving in that town. If he begins his journey after the adhān for Fajr has already been called, then Jumu‘ah prayer remains obligatory upon him, whether in his own town or in any town where Jumu‘ah is being held.
It is stated in Bushrā al-Karīm (Vol.1/p.383), from the books of the Shāfi‘ī school: "Jumu‘ah [prayer] is not obligatory upon a traveler on a permissible journey, whether long or short, if he departs from his place of residence before Fajr."
A "short journey" refers to travel covering a distance shorter than that of a long journey — that is, less than (81 km). The traveler begins to be entitled to travel concessions once he passes beyond the built-up limits of his town. And Allah, the Exalted, knows best.

What are the legal and religious consequences for a charitable organization in the event that a sacrificial animal is damaged or spoiled after slaughter?

All praise is due to Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
Charitable organizations entrusted with slaughtering sacrificial animals (uḍḥiyyah) and distributing their meat on behalf of their owners are obligated to safeguard the meat from spoilage, damage, theft, and any other harm. This is because such organizations act as agents (wukalā') on behalf of those offering the sacrifice, and an agent holds what is entrusted to them in trust (amānah) — whether they receive a wage for their work or act on a voluntary basis.
If the sacrificial animal is damaged after slaughter during the processes of packaging, transportation, or storage due to negligence or oversight — whether on the part of the organization's own staff overseeing the operation, or on the part of third parties contracted by the organization such as transport or shipping companies — then liability falls upon the negligent party, who is required to compensate for the value of the sacrifice. It is not permissible to cover such compensation from the organization's other donor funds.
However, if the damage to the sacrificial animal occurs without any negligence in its preservation and storage on the part of any party involved in the transportation, shipping, or storage process, and is instead attributable to force majeure circumstances beyond their control, then no financial liability is borne by any party in such a case. And Allah Almighty knows best.

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