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Resolutions of Iftaa' Board

Resolution No. (319): "Ruling on Combining Wakalah for a Fee and a Loan in one Contract"

Date Added : 11-01-2023

 

Resolution No. (319), By The Board of Iftaa', Researches and Islamic Studies:

"Ruling on Combining Wakalah for a Fee and a Loan in one Contract"

Date: (21 Jumada al-Ula, 1444 AH), corresponding to (15/12/2022 AD).

 

Praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

In its fifteenth meeting held on the above date, the Board of Iftaa` reviewed the referendum No.(190959) sent to the electronic website of the Iftaa` Department. It stated what follows: "A person authorized another to buy him a car that is worth 10,000 JDs in return for getting paid 100 JDs. However, the authorized will be paid a total of 10100 JDs after one year. In this case, there are two contracts in one. A contract of Wakalah (Agency agreement) for a fee and a loan contract. The question that arises here is that does the loan bring a benefit since the Wakalah fee (Ju`l) is considered a benefit resulting from the loan tied to it?

After deliberations. The Board arrived at the following decision:

This transaction is made up of two contracts: Wakalah for a fee and a loan contract. Simply, the principal/client authorizes the agent to buy him a car from his {Agent} own money in return for receiving a fee and functioning as an agent. 

The general rule is that it isn`t allowed for an agent to purchase, from his own money, a commodity for the principal/client since, according to the Shafi school of thought, he (Agent) is purchasing that commodity for himself. An-Nawawi said: "It isn`t allowed for an agent to buy, from his own money, a commodity for the principal/client and if he (Agent) does then he is buying that commodity for himself." {Rawdat At-Talibeen, Vol.4: 326}.

If the agent used his own money or borrowed money to buy a commodity for the principal/client, then it isn`t permissible to stipulate a contract of leasing (Ijarah) in a sale contract (Bay`). This is since the Messenger of Allah said: "The proviso of a loan combined with a sale is not allowable…." {Transmitted by Tirmithi}. This form of transaction involves the confusedness of usury. I.e. the fee collected by the agent lending the money to the principal/client is an excuse for the increase on the original amount of the loan. The Shafie scholar Al-Mawardi said: "In this sense, it isn`t permissible to purchase and lend. This is like when a person says to another: "I will buy this slave of yours for a hundred provided that you lend me that sum. Both the condition and the loan are invalid based on what we have mentioned earlier. In addition, Ijarah isn`t permissible with the condition of loaning." {Al-Hawi Al-Kabeer, Vol.5: pp.352}. It is stated in the Maliki book {Mawahib Al-Jaleel Fi Mokhtasar Khaleel, Vol.4/pp.314}: "The proviso of a loan combined with a sale is not allowable.."

In conclusion, it isn`t allowable to combine Wakalah for a fee and a loan in one contract. The solution out of this is that the agent buys the car from his own money, then sells it to the principal/client in the form of Murabah contract of sale. And Allah The Almighty Knows Best.

 

Grand Mufti of Jordan, Sheikh Abdulkareem Al-Khasawneh

Dr. Mohammad Al-Khalayleh/ Member

Prof. Mahmoud Al-Sartawi/ Member

Sheikh Sa`eid Hijjawi/ Member

Prof. Amjad Rasheed/ Member

Prof. Adam Nooh Al-Qhodah/ Member

Dr. Jameel Khatatbeh/ Member

Dr. Ahmad Al-Hasanat/ Member

Dr. Mohammad Younes al-Zou`bi/ Member

 

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Summarized Fatawaa

What are the pillars of fasting?

The pillars of fasting are intention and abstaining from all nullifiers of fasting from dawn to sunset.

How is the beginning of Ramadan determined?

1. Completing 30 days of Sha‘ban, or
2. Sighting the crescent moon after sunset on the 29th day of Sha‘ban.
It is Sunnah to search for the moon, and it is obligatory to follow the official authorities responsible for announcing it.

What should someone do if they fasted for 30 days in their country, then traveled to a place where people are still fasting?

If a person completes 30 days of fasting in their country and then travels to another country where people are still fasting, they should continue fasting with them until they observe Eid. Even if they have already completed 30 days, he/she should abstain from eating and drinking and join the people of that country because he/she has now become part of that community.

What is the wisdom behind legislating the Udhiyah?

The Muslim must know that through the Uḍḥiyah, he complies with the command of Allah, the Exalted, and performs a worship that brings him closer to Allah and distances him from the Fire.
 
The Uḍḥiyah holds profound wisdoms and noble meanings, including:
 
1-Reviving the Sunnah of Abraham, peace be upon him: He complied with Allah's command when He ordered him to slaughter his son Ishmael. Abraham, peace be upon him, succeeded in the test, and when he was about to slaughter his son, Allah sent down a ram to ransom Ishmael and commanded him to slaughter it instead. Allah, the Exalted, says {what means]: "And when he reached with him [the age of] exertion, he said, 'O my son, indeed I have seen in a dream that I [must] sacrifice you, so see what you think.' He said, 'O my father, do as you are commanded. You will find me, if Allah wills, of the steadfast.' And when they had both submitted and he put him down upon his forehead, We called to him, 'O Abraham, You have fulfilled the vision.' Indeed, We thus reward the doers of good. Indeed, this was the clear trial. And We ransomed him with a great sacrifice." [Al-Ṣāffāt/102-107]. Thus, the sacrificial offering became an enduring Sunnah until the Day of Judgment, and Muslims offer their wealth as sacrifices, drawing closer to Allah, the Exalted, reviving this great Sunnah.
 
2-Providing abundance for people on Eid day and the Days of Tashrīq: Among the wisdoms of the Uḍḥiyah is that the Muslim provides generously for his family, neighbors, relatives, and the poor during these days. The Muslim is encouraged to eat from his sacrifice, give charity from it to the poor, and gift from it to his wealthy neighbors. Thus, goodness spreads throughout the entire community. The Prophet, peace and blessings be upon him, said: "The Days of Tashrīq are days of eating and drinking." (Narrated by Muslim). Allah, the Exalted, says {what means}: "And the camels and cattle We have appointed for you as among the symbols of Allah; for you therein is good." [Al-Ḥajj/36]. This good includes the good of both this world and the Hereafter.

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