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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

Is it permissible to pay the Fitr Zakah (obligatory charity) of Ramadan on behalf of a dead person?

The Fitr Zakah of Ramadhaan isn`t due on one who had passed away before the sunset of the last day of Ramadan. And Allah Knows Best.

What is the ruling on fasting for those with diabetes, heart disease, high blood pressure, kidney disease, or ulcers?

● A sick person who is completely unable to fast is exempted from fasting and must offer fidyah (feeding a needy person), as Allah Almighty says {what means}: "and [in such cases] it is incumbent upon those who can afford it to make sacrifice by feeding a needy person." [Al-Baqarah/184]. They are not required to make up for the missed fasts.
● A sick person who can fast on some days but not others should fast when able and make up the missed days after Ramadan when possible. No fidyah is required in this case.
● If fasting during the long, hot summer days is too difficult for a sick person, but they can make up the fasts during the shorter, cooler winter days, they should break their fast and make up for it when they are able, without fidyah.

What is the ruling of Islamic Law on making up missed voluntary prayers?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
It is recommended for a Muslim to make up any missed voluntary prayers — whether the regular Sunnah prayers (rawātib), the witr prayer, or his personal devotional routine (wird). As for voluntary prayers that are tied to a specific cause or occasion — such as the eclipse prayers (kusūf and khusūf) — these are not made up once their time has passed.
Shaykh al-Islām Imām al-Nawawī, may Allah have mercy upon him, stated: "The correct view in our school is that making up the regular voluntary prayers is recommended." [Al-Majmūʿ, Vol. 4/P.43] And Allah the Almighty knows best.

If someone starts the day sick or traveling while fasting, is it permissible for them to break their fast?

● A sick person who finds fasting difficult is allowed to break their fast, whether they began the day fasting or not.
● As for a traveler:
○ If they were still at home at dawn and then traveled after Fajr (dawn), they must continue fasting unless they experience extreme hardship, in which case they may break their fast.
○ However, if they were already traveling when dawn broke—meaning they had left their town before Fajr—then they are permitted to break their fast. This is what the Prophetﷺ did during the year of the conquest (of Makkah).

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