عربي
Home


Articles

Articles

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.

Article Number [ Previous | Next ]

Read for Author




Comments


Captcha


Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.




Summarized Fatawaa

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.

What should a person, who doubts the validity of his Wudu, or over performs it, do?

One who doubts the validity of his/her Wudu while performing it should redo it until he/she is certain of having attained purity. But, if doubt was after having performed Wudu, then he/she should not pay attention to that as doubt after the end of an act of worship does not count. This is of course in case doubt was within the reasonable limits since once it goes beyond that, it becomes a whispering of the Shaytaan (devil) which he/she should ignore as the Wudu is valid.

Is it permissible to include others in the reward of one`s sacrifice?

 

In the Name of Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
 
It is permissible for the person offering an Udhiyah (sacrificial offering) to include others in the spiritual reward of the sacrifice. However, it is not permissible for multiple people to jointly share the purchase price of a single sheep or goat, unless one person gifts the money to the other.
 
It is stated in Mughni al-Muhtaj (6/137) by Al-Khatib al-Shirbini:
 
"If a person includes someone else in the reward of his sacrifice and slaughters it on his own behalf, it is permissible."
 
It should be carefully noted that including someone else in the reward of one's sacrifice is completely distinct from offering a sacrifice on behalf of someone else. And Allah the Almighty Knows Best.

Is it permissible for someone who is unable to fast to pay the fidyah (ransom/compensation payment) to himself, due to his own poverty?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
It is not permissible, nor does it fulfill the obligation, for a sick person who is currently and permanently unable to fast to pay the fidyah (ransom/compensation payment) to himself, since it is a financial obligation owed by him, established as a standing debt upon him — much like any other debt he owes. If he were to pay it to himself, it would not thereby be discharged. So if he cannot find [anyone eligible to] pay it to, it remains a standing obligation upon him, and is not thereby waived. If Allah, the Mighty and Majestic, later grants him wealth, it becomes obligatory upon him to pay it out to the poor and needy.
Imam al-Khaṭīb ash-Shirbīnī (raḥimahullāh) said: "There is no difference in the obligation of the fidyah between the wealthy and the poor person; its benefit lies in its remaining established as a standing debt upon the poor person [until he is able to pay it] — and this is the more correct position (al-aṣaḥḥ), as indicated by the wording of ar-Rawḍah and its source text." [Mughnī al-Muḥtāj, Vol.2/P.174]
Accordingly: it is not permissible for a Muslim to pay the fidyah to himself while he remains poor. If the sick person is poor, he is not obligated to pay the fidyah immediately, and it remains a standing debt upon him until a time when he has sufficient means and wealth. And Allah, the Exalted, knows best.

See More