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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 Zakah (obligatory charity) due on the Zakah money received by a poor person, and reached a Nissab (minimum amount liable for Zakah), and a whole lunar year had lapsed over having it in his possession?

Yes, the poor who possessed a Nissab for a whole lunar year is obliged to pay the Zakah due on that money even if it was given to him as a Zakah money in the first place. And Allah Knows Best.

What is the ruling on water that contains ornamental fish — does it become impure on account of their waste?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
The water in a pond containing ornamental fish is pure so long as it has not been altered, for a small amount of fish waste (rawth) is pardoned and overlooked — provided it does not change the water.
It is stated in Ḥāshiyat al-Jamal ʿalā Sharḥ al-Manhaj (Vol.1/P.178): "A small amount of hair from a non-edible animal is pardoned, as is a small amount of hair from a riding animal — on account of the hardship involved in avoiding it — and likewise a small amount of fish waste is pardoned, unless it alters the water." And Allah the Almighty knows best.

What is the virtue of Laylat al-Qadr?

It is enough to know its great status that Allah revealed an entire surah about it—Surah Al-Qadr. Moreover, the Quran was first revealed on this night.
Allah says {what means}:
"We have indeed revealed this (Message) in the Night of Power: And what will explain to thee what the night of power is? The Night of Power is better than a thousand months. Therein come down the angels and the Spirit by Allah's permission, on every errand: Peace!... This until the rise of morn!" [Al-Qadr/1-5]
The Prophet ﷺ taught us to observe I‘tikaf in the last ten nights of Ramadan, seeking Laylat al-Qadr. Whoever worships Allah and revives this night will receive the reward of worshiping for a thousand months—excluding Laylat al-Qadr itself.

Which holds greater virtue: The Udhiyah (Sacrificial Offering) or giving its value in Charity (Sadaqah)?

In the Name of Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
 
Offering an Udhiyah (sacrificial offering) holds greater virtue than donating its monetary value to the poor and needy. This is because the sacrifice is a prominent, manifest ritual among the sacred symbols of Islam. Allah Almighty says: "That [is so]. And whoever honors the symbols of Allah - indeed, it is from the piety of hearts." (Al-Hajj: 32)
 
Furthermore, there are numerous authentic and explicit Hadiths highlighting its immense reward. The Prophet (peace and blessings be upon him) consistently offered this sacrifice, as did the Righteous Caliphs after him. And Allah the Almighty Knows Best.
 

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