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.

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Summarized Fatawaa

What is the Islamic ruling on eating from the 'aqīqah?

All praise is due to Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
It is recommended (mandūb) to eat from the 'aqīqah, unless it was vowed (mandhūrah). If the 'aqīqah was made as a vow, then it is prohibited to eat from it, and it becomes obligatory to distribute the entirety of it in charity to the poor. And Allah Almighty knows best.

What is the ruling of Islamic Law on a father shaking hands with his son’s wife after she has been divorced three times?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
The wife of one’s son is among the women permanently prohibited to the husband’s father as soon as the marriage contract  is concluded, based on the saying of Allah the Exalted: “Prohibited to you are your mothers, your daughters, your sisters, your paternal aunts, your maternal aunts, your brother’s daughters, your sister’s daughters, your foster mothers, your foster sisters, your wives’ mothers, and your stepdaughters under your guardianship [born] of your wives with whom you have consummated marriage. But if you have not consummated marriage with them, there is no sin upon you. [Also prohibited are] the wives of your sons who are from your loins, and that you take [in marriage] two sisters simultaneously, except for what has already occurred. Indeed, Allah is ever Forgiving and Merciful.” [al-Nisāʾ/23]
This prohibition begins once the son’s marriage contract with his wife is complete, and it remains in force even if the son separates from her before consummation or before any seclusion (khalwah) with her. It is therefore permissible for the father to shake her hand and to be alone with her, provided there is no fitnah (temptation) and no suspicion.
It is stated in ʿUmdat al-Sālik (p. 204): “It is forbidden to marry… the wives of one’s fathers and of one’s sons. All of these women become prohibited by the mere contract, … all of that being a permanent prohibition.” End quote, with slight adaptation. And Allah Almighty knows best.

Who is "the poor" entitled to receive Zakah (obligatory charity)?

The poor is the one who has neither money nor a source of living, or has either of them, but it isn`t sufficient such as being in need for a hundred/JDs, and having an income of forty/JDs only.

What is the ruling of Islamic Law on working in hotels?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
It is permissible to work in hotels, restaurants, and shops in jobs that involve no direct handling of forbidden things and do not assist in them, such as administrative work.
As for jobs in which one directly handles forbidden things or assists in them, such as serving, transporting, or purchasing alcohol, receiving payment for it, or agreeing to buy it, working in them is forbidden, based on the saying of Allah the Mighty and Majestic: “And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.” [al-Māʾidah/2]
The basic nature of the work of hotels and restaurants is permissible, and the sin of any forbidden element that arises incidentally in some of what takes place in a hotel or restaurant is borne by those who run it.
The scholars have also permitted dealing with one whose lawful wealth is mixed with unlawful wealth, as previously explained in Fatwa no. (2697). And Allah Almighty knows best.