عربي
Home


Articles

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.

Article Number [ Previous | Next ]

Read for Author




Comments


Captcha


Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.




Summarized Fatawaa

Is Zakah (obligatory charity) due on the equipments used in the trading process such as: cars , shops etc..?

No Zakah is due on equipments used in the trading process such as cars and the like.

What is the Iddah period upon death of husband? What is the ruling when the woman observing Iddah after death of husband leaves her home to visit relatives although her Iddah hasn`t ended? What is the ruling on her wearing gold during Iddah period?

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.
For a woman whose husband has died, the 'Iddah*  is four months and ten days after the death of her husband. If a woman is pregnant, the 'Iddah lasts until she gives birth. Moreover, she has to mourn, not wear gold, perfume nor saffron-colored garment. The evidence on this is that The Prophet (PBUH) said: "It is not lawful for a Muslim woman who believes in Allah and the Last Day to mourn for more than three days, except for her husband, for whom she should mourn for four months and ten days." [Agreed upon]. And Allah The Almighty Knows Best.
 
*The iddah is a waiting period that a Muslim woman observes after the death of her husband or after a divorce. The Quran says: For those men who die amongst you and leave behind wives, they (the wives) must confine themselves (spend iddah) for four months and ten days.

Is it permissible to fish on Saturday?

All Perfect Praise be to Allah, The Lord of The Worlds, and may His Peace and Blessings be upon our Prophet Muhammad and upon all of his family and companions. 

It is permissible for Muslims to fish on any day, but the sons of Israel are the ones forbidden to fish on Saturday. Moreover, there is no evidence in Islamic Sharia prohibiting Muslims from fishing on that day. And Allah Knows Best.

Are phone conversations between the two sexes permissible if for consultation, and within the limits of good manners?

Such act is impermissible since it renders hearts corrupt, and could lead to forbidden attachment. Allah, The Almighty, Says (What means): "and follow not the footsteps of the devil." [Al-Baqarah/68].

See More