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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

Who is responsible for performing the aqiqah?

All praise is due to Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
The one upon whom the 'aqīqah is incumbent is whoever is obligated to financially maintain the newborn — whether the father, paternal grandfather, or mother. It is to be performed from their own wealth, not from the wealth of the newborn child.
As for one upon whom the financial maintenance of the newborn is not obligatory, they may not perform the 'aqīqah except with the permission of the one upon whom it is obligatory — namely, the father. And Allah Almighty knows best.

What is the ruling on entering the toilet with something containing the remembrance of Allah?

It is disliked to bring into the toilet anything containing a reminder of Allah, such as the Quran or a sacred name (like the name of Allah, Muhammad, etc.). If one does that, etiquette dictates that he conceal it so it is not visible while entering the toilet, either by cupping his hands over it, putting it in his pocket, or inside his shirt if it is a necklace or ring. And Allah  the Almighty knows best.

What should one do if they see someone deliberately eating or drinking openly during Ramadan?

They must enjoin what is right and forbid what is wrong. If they fear harm from that person, they should disapprove of it in their heart but avoid sitting with them if possible. It is also preferable to seek the help of the authorities to prevent them from doing so.

My brother works in a conventional bank and gave me one of the gifts distributed to bank employees — what is the ruling on accepting it?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
There is no objection to accepting such gifts, because the physical gift itself does not carry any inherent prohibition — unlike stolen property. Sin does not transfer or extend to the one who receives the gift, for Allah the Almighty says {what means}: "And no bearer of burdens shall bear the burden of another." [Al-Anʿām/164]
The evidence for this is that the Prophet ﷺ himself ate from the food of the Jews, conducted transactions with them, and purchased from them — and it is well known that their wealth was intermingled with ribā. Similarly, the wealth of conventional ribā-based banks is a mixture of the lawful and the unlawful.
Ibn Ḥajar al-Haytamī, may Allah have mercy upon him, states: "It is not forbidden to transact with one whose wealth is predominantly unlawful, nor to eat from it — as al-Nawawī affirmed in al-Majmūʿ." [Tuḥfat al-Muḥtāj, Vol. 9/P.389] And Allah the Almighty knows best.

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