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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

Allah The Almighty Made marrying up to four women lawful, but human beings prohibit that with their own land laws. What is the position of Sharia on this?

All perfect 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.
What Allah has made lawful, human beings can`t make it unlawful. However, taking the decision to marry up to four women requires material and physical abilities, in addition to having the courage to make such a decision. And Allah The Almighty Knows Best.

What is the ruling on combining prayers at the Musala (Place for prayer) of a shopping center because of heavy rain, knowing that some people come from outside that center?

Praise be to Allah, the Lord of the Worlds.

If there is hardship in going back to that Musala at the time of Asr or Isha` prayers, then it is permissible to combine prayers in twos only (Duhr with Asr and Maghrib with Isha`). Kindly consider calling us. And Allah Knows Best.

Is abortion permissible when the family isn`t ready to receive a new baby?

Abortion is forbidden unless it constituted a serious threat against the mother`s life based on the opinion of trustful and God fearing physicians.

A woman died at the age of ninety. Her living children are nine: two sons and two daughters. The youngest of her grandchildren, from her son who passed away one year before her, is aged thirty-two. Are these grandchildren entitled to the obligatory bequest although they are aged thirty-two and above?

All perfect 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.
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