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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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What is the ruling on the ablution of one who cuts his nails, and is it permissible to cut them before the ritual bath for major impurity (janabah)?

Cutting nails does not invalidate ablution, and it is permissible to cut them before the ritual bath for major impurity. And Allah the Almighty knows best.

What is the ruling on reciting the Chapter after Al-Faatihah , and what should a worshiper who forgets it do?

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The son should seek the help of his relatives in order to convince his father to do the aforesaid, and the father should make sure that his son doesn`t commit fornication through helping him to get married, and Allah will reward him for doing so.

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.
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