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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

Is it permissible to fast on behalf of the dead who died owing missed fast to make up?

His relative should fast on his behalf, and it is permissible for the guardians to give permission to non-relatives of the dead to fast on his behalf as well. And Allah Knows Best.

Is it permissible for the woman who is observing Iddah after her husband`s death to sit with her daughter`s suitor, although their marriage contract hasn`t been concluded yet?

All perfect praise be to Allah the Lord of The Worlds. May His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
A suitor who hasn`t concluded the marriage contract isn`t a Mahram*, so he must be treated as such. And Allah The Almighty Knows Best.
* The period a woman must observe after the death of her husband or after a divorce, during which she may not marry another man.
* In Islam, a mahram is a member of one's family with whom marriage would be considered haram, concealment purdah, or concealment of the body with hijab, is not obligatory; and with whom, if he is an adult male, she may be escorted during a journey, although an escort may not be obligatory.

What is the ruling on a woman driving a car?

All Perfect Praise is to Allah, The Lord of The Worlds, and may His Peace and Blessinsg be upn our Prophet Muhammad and upon all of his family and compnions.

It is permissible for the woman to drive a car, but it is impermissible for her to travel unaccompanied by a Mahram (Unmarriageable kin). And Allah The Exalted Knows Best.

 I am an employee at Social Security, and I have heard that working with them is forbidden (haram) because they impose an interest rate of 2% on companies and individuals who are late in making payments. Is my job with them haram or questionable?

Please clarify the type of work. If it does not involve the usury (Riba) mentioned, we hope that there is no issue with it, as most of their funds are acquired in a lawful (Complies with the teachings of Sharia) manner. And Allah, The Almighty, Knows Best.

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