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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

I work overtime after regular working hours and may become occupied with my phone or the work computer for personal matters — what is the ruling on this?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
It is obligatory upon an employee to abide by the instructions and regulations governing overtime hours, and equally obligatory to uphold honesty and avoid all forms of deception and dishonesty. Allah the Almighty says {what means}: "O you who have believed, be mindful of Allah and be with the truthful." [Al-Tawbah/ 119]
Whoever is assigned to work overtime must be present at his workplace — even if he has no specific tasks to carry out at that time. In such a case, he should strive as best he can to spend that time in a manner that benefits the institution he works for. If there is genuinely no work for him to do, there is no objection to occupying his time with something beneficial — such as reciting the Holy Qurʾān, reading, or listening to educational lessons — provided he has already completed all the responsibilities assigned to him.
If, however, he does have work to complete, he must spend that time fulfilling it. He may attend to phone calls or other personal matters to the extent that is customarily acceptable, as long as this does not result in delaying or postponing his work. If he delays his work on account of personal preoccupations, the wages he received for that wasted time are not lawfully his to keep, and he is obliged to return the equivalent amount to the institution by whatever means available to him. And Allah the Almighty knows best.

Is it permissible to purchase the Udhiyah on installments?

It is permissible to purchase the sacrificial animal (uḍḥiyyah) on installments or by borrowing its price. However, it is not recommended for the poor to do so, because they are not required to offer a sacrifice, and Allah does not burden a soul beyond its capacity. If doing so would lead to negligence in providing for one's dependents (nafaqah wājibah), then giving precedence to obligatory maintenance over borrowing to buy the sacrifice is appropriate. This is based on the saying of the Prophet (peace and blessings be upon him): "It is sufficient sin for a person to withhold food from those whom he is responsible to support."
 
Furthermore, the sacrifice is valid from one who has a debt, but it is preferable (awlā) to repay the debt first, especially if the debt is due immediately (ḥāll). And Allah Almighty knows best.

What is the ruling on shaving the head of the newborn?

It is desirable to shave the head of the newborn on the seventh day from delivery, and the weight of his/her hair is given in gold , or silver as charity.

Is it permissible for one to shake hands with his uncle`s daughter?

No, it isn`t because he is a non-Mahram (Marriageable) to her.

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