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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

Does sacrificing one sheep avail for the entire household?

In the Name of Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
 
Offering an Udhiyah (sacrificial offering) is a communal Sunnah (Sunnah Kifayah) for members of the same household, provided that their financial maintenance is undertaken by a single provider. By "communal Sunnah," we mean that when one person performs it, the religious recommendation is fulfilled on behalf of the entire household, though the spiritual reward itself belongs uniquely to the one who offered it.
 
Therefore, if any member of the household performs the sacrifice—even if it is someone who is not legally responsible for the household's expenses, such as the wife or one of the children—the recommendation is fulfilled for everyone in that home. However, the reward does not automatically extend to the other members unless the person offering the sacrifice explicitly intends to share the reward with them—similar to how performing a funeral prayer (Janazah) fulfills the communal obligation for everyone, yet the specific reward is earned by those who actually prayed.
 
Additionally, a single sacrifice is sufficient for a man who is married to more than one wife. And Allah the Almighty Knows Best.

What are the Sunnah acts of fasting?

● Delaying Suhoor (pre-dawn meal) as long as there is no risk of Fajr beginning.
● Hastening Iftar (breaking the fast) immediately after confirming sunset.
● Performing I‘tikaf, especially during the last ten nights of Ramadan.
● Reciting the Quran frequently.
● Avoiding idle and useless talk.
● Being generous and charitable.
● Guarding oneself from desires.
● Purifying oneself from major impurity (janabah) before Fajr.

Is it permissible for women to gather in one of their homes to pray Tarawih?

Yes, it is recommended (mustahabb) for women to pray Tarawih in congregation if they gather, even if it is not in the mosque.
In fact, praying at home is better for them, as it avoids the potential concerns associated with going to the mosque.

Is it permissible to participate in an Udhiyah?

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
 
Regarding the sacrificial offering (Udhiyah), if it is a sheep or a goat, it only avails for one person. However, if it is a cow or a camel, it avails for seven people. It is permissible for the seven participants to have different intentions; for example, some may intend the sacrifice (Udhiyah), some the ’Aqiqah (sacrifice for a newborn), and others may simply intend to obtain meat.
 
It is stated in Hashiyat Qalyubi ‘ala Sharh al-Mahalli (Vol.4/P.256) and in Bushra al-Karim (p. 706):
 
"If one slaughters a camel or a cow on behalf of seven... it is permissible. Likewise, it is permissible if some of them intend their seventh for meat, and others intend their seventh for ’Aqiqah." And Allah the Almighty knows best.

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