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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

What is the ruling on eating from one`s Udhiyah?

Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
Sacrifices (Udhiyah) are categorized into two types: the Vowed Sacrifice (Al-Mandhurah) and the Voluntary Sacrifice (Al-Tatawwu').
1. The Vowed Sacrifice (Al-Mandhurah)
The vowed sacrifice is obligatory due to the person’s specific oath. It is not permissible for the person offering the sacrifice, nor for those they are legally responsible for financially supporting (dependents), to consume any part of its meat or fat. Furthermore, it is not permissible to benefit from its hide, hair, or any other part.
If they do consume any part of it, they are required to give in charity an equivalent amount of meat or its market value [Tuhfat al-Muhtaj, by Ibn Hajar al-Haytami (9/364)].
2. The Voluntary Sacrifice (Al-Tatawwu’)
Regarding the voluntary sacrifice, it is permissible for the one offering it to eat from its meat, distribute it as gifts to the wealthy, and give it as charity to the poor.
The Obligatory Portion: It is mandatory to give at least a small portion of it in charity to the poor; this portion should not be less than approximately half a kilogram of raw meat. And Allah the Almighty knows best.

Is it permissible for someone with a physically demanding job, such as a baker or construction worker, to break their fast?

It is not permissible for someone with a physically demanding job to start the day intending to break their fast. They must make the intention to fast at night and begin fasting. However, if they reach a point where fasting becomes unbearably difficult, they may break their fast and make up for it later.

What is the ruling on preparing food for someone who is not fasting in Ramadan?

It is forbidden to prepare food for someone who is breaking their fast without a valid excuse in Ramadan.
Doing so would be assisting in sin, and assisting in sin is itself a sin.
Allah says {what means}: "but help ye not one another in sin and rancour" [Al-Mai`dah/2]

What is the ruling on giving Zakah (obligatory charity) to one`s relatives?

It is impermissible to pay Zakah to one`s origins (parents and grandparents) because providing for them is an obligation on their branches (sons and daughters) if they were poor, but it is permissible to give some of the Zakah money to relatives whose provision isn`t due on the giver of the Zakah.

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