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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 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.

I wish to purchase an online account (a gaming account), and its ownership will be transferred to me. However, my friend will purchase it on my behalf, and I will repay him in deferred installments with an added profit margin to account for the installment sale. What is the ruling of Islamic Law on this transaction?

 
All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
 
The ruling on selling electronic games depends on the ruling of the game itself: if the game is permissible, then selling it is likewise permissible. However, if the game contains Sharia violations that render playing it impermissible, then selling it in that case is neither valid nor permissible. Therefore, we advise the necessity of reviewing the Sharia guidelines for electronic games set forth in Fatwa No. (3369).
 
Accordingly, if the game is permissible, a person may purchase it, take legal possession of it, and subsequently sell it in deferred installments for a price higher than its purchase price. The General Iftaa' Department has permitted dealing through Murabaha, while emphasizing the necessity of observing the Sharia conditions required for this transaction; please refer to Fatwa No. (2861). And Allah Almighty knows best.

What is the ruling on performing the obligatory prayer immediately after the commencement of the Adhan?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
It is permissible to perform the obligatory prayer (Fard) immediately after the commencement of the prayer time. As the Adhan (call to prayer) serves as a sign that the time has entered, it is permissible to pray as soon as the Adhan begins. However, it is recommended (Mustahabb) for whoever hears the Mu’adhin to repeat what he says. If the Adhan occurs while one is already engaged in prayer, he should repeat the words of the Mu’adhin after he has completed his prayer. And Allah the Exalted knows best.

Does tooth extraction during the day in Ramadan break the fast?

Simply extracting a tooth during the day in Ramadan does not break the fast. However, if water or blood enters the body cavity, the fast becomes invalid.
Whoever's fast is invalidated in this way must refrain from eating and drinking for the rest of the day out of respect for the sacred month and make up for that day later.
It is preferable to postpone the extraction until nighttime or after Ramadan if possible.

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