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Resolutions of Iftaa' Board

Resolution No.(102): "Ruling of Sharia on some Dealings of the American Stores Company""

Date Added : 13-03-2016

 

Resolution No.(102) by the Board of Iftaa`, Research and Islamic Studies: "Ruling of Sharia on some Dealings of the American Stores Company"

Date: 5/4/1427 A.H, corresponding to 3/5/2006 A.D

 

 

We have received the following question: 

What is the ruling of Sharia concerning the dealings of the American Stores Company (ASC)?

The Company`s dealings are as follows:

The Company may take part in an auction and during the bidding process it may be offered a sum of money in return for withdrawing. Is accepting that offer and taking that money lawful or unlawful?

Moreover, the Company concludes joint indemnity and investment contracts whereby an agreed upon condition sets a certain amount of indemnity e.g. 20% from the overall sales, with a certain minimum stipulated in the contract. Is conditioning a minimum in these contracts lawful or unlawful?

Also, the Company deals with non-Islamic banks, but is currently dealing with the  Jordan Islamic Bank. Is dealing with the latter bank through Islamic Murabaha lawful, taking into consideration that, in essence, the dealing is similar to that carried out with non-Islamic banks?

Would you kindly clarify the position of Sharia on the above so as to adhere to its provisions when dealing with the Islamic banks?

The Board is of the following view:

1- It is forbidden to offer or take any sum in return for withdrawing from a bid because this leads to defrauding people`s goods. Allah, The Almighty, Said (What means): "So give full measure and weight and do not defraud people’s goods." {Al-A`araf/85}. Also, the Prophet (PBUH) said: "There should be neither harming nor reciprocating harm." {Ibn Majah}.

2- Having reviewed a sample of the above contracts which the Company concluded with other parties, the Board realized that they don`t adhere to the provisions of Sharia in the following aspects:

The juristic framing of these contracts is that they are Ijarah (Hiring) contracts because one of the parties offers a specific place to the other party in return for a certain wage. What counts in these contracts is their implied meaning, not their phrases and structures.

The wage in an Ijarah contract should be specified, because the Prophet (PBUH) said: "Whoever employs a person should inform him of his wage." In these contracts the wage is not specified. It is either: e.g. 20% from the overall sales or a certain defined sum, and the higher is collected by the company.

Defining the wage as 20% from the overall sales makes it unspecific because both parties are unaware of what will be sold, and this annuls the contract because it becomes an aleatory contract. The Prophet (PBUH) has forbidden aleatory sale. He said: "If anyone makes two transactions combined in one bargain, he should have the lesser of the two or it will involve usury." {Sunan Abu-Dawud}.

In conclusion, dealing with the Jordan Islamic Bank through Islamic Murabaha is lawful so long as the Bank complies with its conditions stipulated in Sharia.

A key condition is that the Bank must purchase the commodity upon the purchaser`s request, collect it, possess it, guarantee it, then sell it to the purchaser because the Prophet (PBUH) told Hakeem Bin Hazim: "If you purchase food, don`t sell it until you collect and take possession of it." {Musnad Ahmad}. And Allah Knows Best.

 

 

 

 

 

* Murabaha means selling an object while informing the purchaser of its original price and the profit he is getting in this deal. The conditions of the validity of this sale/transaction are the same as the other sales/transactions, i.e. the sold item itself should be lawful, pure, useful, in the possession of seller, and the seller should be able to hand it over to the purchaser.

 

 

Chairman of the Iftaa` Board, Chief Justice, Izzuldeen Attamimi

Dr. Yousef Ghyzan/ Member

Dr. Abdulmajeed Assalaheen/ Member

Sheikh Sa`eid Hijjawi/ Member

Sheikh Abdulkareem Al-Khasawneh/ Member

Dr. Ahmad Hilayel/ Member

Sheikh Nae`im Mujahid/ Member

Dr. Wasif Al-Bakri

 

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Summarized Fatawaa

Is "Bismillāhir-Raḥmānir-Raḥīm" a verse (āyah) of Sūrat al-Fātiḥah?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
The basmalah ("Bismillāhir-Raḥmānir-Raḥīm") is, without question, a verse (āyah) of the Noble Qur'an, and according to the Shāfi‘ī school, it constitutes a verse of Sūrat al-Fātiḥah itself. Al-Fātiḥah is a pillar of the prayer, and it consists of seven verses, of which the basmalah is one. The prayer is not valid without reciting it, nor if any of the Fātiḥah's verses, letters, or shaddahs (consonant doublings) are omitted or altered.
It is stated in Bushrā al-Karīm (Vol.1/p.202), from the books of the Shāfi‘ī school: "The basmalah is a complete verse of it [i.e., of al-Fātiḥah] in practice — and it suffices, for this to be established, that there be strong probability (ẓann), especially given that this has come very close to certainty (yaqīn), due to the consensus (ijmā‘) of the Companions on its inclusion in the muṣ-ḥaf [the written text of the Qur'an] in its script, despite their extreme diligence in excluding from it anything that did not genuinely belong to it — to the point that they even [carefully regulated] its diacritical dots and vowel markings." And Allah, the Exalted, knows best.

Is bleeding that lasts for nine or ten days considered menstruation (Hayd)?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
If the duration of the bleeding does not exceed fifteen days, then all of it is considered menstruation (Hayd), even if the regular cycle ('Adah) has changed. And Allah the Exalted knows best.

Is it correct that everything dry is pure even if it has impurity on it?

If something impure becomes dry, it remains impure and is not purified by drying. However, the impurity does not transfer by touching it if the one touching it is also dry. And Allah the Almighty knows best.

What is the ruling on waiving a debt owed by a debtor and counting it toward zakāh?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
Waiving a debt owed by a debtor, with the intention of counting it toward zakāh, does not fulfill the zakāh obligation. Rather, it constitutes an ordinary act of charity, for which Allah rewards the giver generously — since one of the conditions for the validity of zakāh is that the person paying it must form the intention of zakāh at the actual moment the wealth is paid out. In this case, the debt has already been established as a standing obligation upon the borrower, so it is not valid to simply redirect the intention toward zakāh after the fact.
It is preferable, instead, for the creditor to first collect the debt from the debtor, and then return to him the amount of money he is required to pay as zakāh — or a portion of it — if the debtor happens to fall under one of the eight categories that Allah, the Exalted, has commanded be given from zakāh.
It is stated in ‘Umdat as-Sālik, from the books of the Shāfi‘ī school: "If someone gives [money] to a poor person, stipulating that the recipient return it to him in payment of a debt owed to him, or says, 'I am making what you owe me into zakāh, so take it [as such]' — this is not valid. But if he gives it to him with the [unstated] intention that the recipient will use it to repay him, or says, 'Repay what you owe me, so that I may [then separately] give it to you as zakāh,' or the debtor himself says, 'Give it to me, so that I may [then] repay you with it' — this is valid, and there is no binding obligation for the recipient to actually fulfill this [informal understanding]." And Allah, the Exalted, knows best.

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