Hacene Chebbani – Islamic Finance – Part 4

Hacene Chebbani
AI: Summary © The speakers discuss the importance of contracts in various aspects of Islam, including property leases, insurance, and trademark. They touch on the use of intangible assets and privacy and acceptance in public use. The speakers also discuss various topics related to car sales, including the importance of giving witnesses, the use of certain terms in contracts, and the use of negative language in media. They emphasize the need for clear terms and agreements, avoiding double-standing contracts, and avoiding double-standing contracts. They also mention the importance of avoiding double-standing contracts and the need for people to be clear about their terms.
AI: Transcript ©
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alameen salatu salam ala Sayyidina Muhammad wa ala alihi wa sahbihi ama.

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So we continue inshallah with our program, fifth of business transaction. And tonight we will talk about will focus on the contract of sale.

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And we will try to understand the general you know, formula of

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a philosophy of contract making contracts in Islam.

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So, basically, Islam considers the wealth or the Mel

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of someone the property of someone as sacred as his life. And he's honor

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and that's why I also realized that the Lord is in him said, if someone comes to you to take your wealth to money, you have the right to fight with him. If he kills you, then you are a Shaheed

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and if you killed him, then he will be in Hellfire because he's taking coming to take your wealth without any right.

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And that's why Islam has made it unlawful and permissible, haram to devour others property by means of theft, stealing or usurpation, which is called the hustle

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in the Arabic language,

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you know or any other lawful means of acquisition of wealth.

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What is the difference between theft and usurpation?

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theft is a scary thought when someone steals something usually he does it secretly. He hides himself and he would steal the money of others. But usurpation of us is the acquisition of other's property in public, by means of force. You know, someone he's like in a position of power authority, he will come to someone and take his wealth and money this is called the US like, or any other means that Allah Subhana Allah has forbidden, like cheating, you know, or bribery or Russia. All these means are are Haram in Islam, beside the main prohibitions that the last panel to Allah has mentioned.

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Making interest based transactions and morality Riba via oral horror. Any transaction that involves involves a high level of uncertainty, OSHA holla

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or gambling or injustice, or selling, you know, forbidden items that are not supposed to be consumed by Muslims.

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But at the same time when we've talked about, you know, forbidden sales or ways means of making business, then there is the alternative there, whenever Allah subhanho wa Taala, makes something Haram, he always

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would provide the last panel data would always provide the halal alternative. So how can we make business is through making valid contracts? So Allah Subhana, Allah has allowed his servants to trade and make business through valid contracts. And that's why Here comes the importance of knowing what is a valid contract? What are the conditions of contract making the sale of a contract of sale or any other contract, but tonight we'll focus on you know, the contract of sale and we will try to discuss the general principles of contracts and the essential elements what are the essential elements of contracts? Are Can l Bay, Phyllis law, if these are current or not, they're these

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essential elements, elements are not there, then the contract is void is not valid. And then we try to talk about the conditions of the subject matter which is called an Alma beer,

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or a theremin and met in Rocco de la, in general is called in marco de la, either inmobi which is the subject matter, or Thurman the price and also we talk a little bit about the qualifications of the contracting parties. Elite

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is your alaric udon Mallya. What are the qualities of those who are eligible to make a business transaction.

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So, basically, we will we shall I will try to focus tonight on these on this subject. So, contracts basically all generally speaking,

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goods and products

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or the transaction of user fracked user fraktur code

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In, in Arabic and Maranatha.

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So when we when you lease or you rent a property, you don't own the property, but you own the user fraction of this property.

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So the equity we use a fraction of this property could be a subject matter in a in a transaction of no lease in a rental transaction.

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And also, it involves the transfer of ownership between, you know, two parties from one party to another

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wealth, or men in Islam.

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So the rule ama decided it's anything that is usable, and has legal and material value, legal value, and it has it is recognized.

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It has a value that is recognized in Korea, for example, the sale of a dog in Syria does not recognized the sale of alcohol or dogs. So this is it doesn't have a legal value in Syria. And it has to have a material value something that you, you own it, you benefit from it. There are some there are some transactions in modern Asia that have no material value, for example, that's why we when we talk about insurance, most of the scholars that said insurance is haram, because you're paying money, but what is the counter value?

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It says safety, but there is no certainty that you need, you're going to use this safety, what kind of safety you are talking about. So that's why these you know, most of the contracts of insurance,

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you know, are not you know, are controversial, highly controversial in Islam. Most of the family said the modern commercial insurance is haram and they have an alternative who might talk about it insha Allah, what is Islamic insurance, which is called nowadays is takaful, we'll talk about it has some problems, and it is still in the early stages of development. But inshallah, if we have time in this program, we'll talk about these kinds of issues.

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It also

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includes abstract and intangible assets. Can you give me an example of an intangible asset?

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accounting is a profession, when you hire someone to do some accounting for you. Actually, there is a value he's doing some work. He's making some efforts, and it has a value.

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Stock knows a share in a company. It's not it's intangible assets, because you own a share in the company. So it is a tangible asset.

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shoura, the trade name? Yes, yes, that's right. This is one of the company name

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or trade name.

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You know, these are intangible assets. And they have a financial value in Islam. And this is the copyright, for example. It's an intangible asset. And it is respected in Islamic Sharia and it has a financial value,

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patent, something that they call patent when someone invents something in this society, that the government will give him a license to use this, you know, this power of owning this invention, and take and accept financial compensation for it for a certain period of time. In the Canadian law, in some cases, 17, between 17 years to up to 40 years. But in theory, it doesn't have a limit. It is a right that can be inherited. You know, someone has authored the book, and he's selling his well he doesn't tell himself there is a printing shop or a company that is you know, selling his book on his behalf. So he has a right to you know, he has he made an effort, he wrote this book. So he has a

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right to get financial compensation for his efforts. And this right could be inherited by his inheritors his family members when he passes away. And that's why the Muslim Phil council 20 years ago, he made the statement, they made a decision about these kinds of intangible assets. And these are the trade names I'm reading now their statement, their official statement, their decision, trade names, company names, trademarks, writings and inventions and all the copyright of their owners or authors, which in modern practice have acquired monetary value.

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And these rights are respected by Sharia, and it is not permissible to transgress against them. Copyright

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authors, inventors is protected in Islam. Now, here we are, when we talk about these things, we remember a practice a common practice nowadays.

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making copies of CDs, for example, and software's is it permissible or not.

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So the owner Mr. Lee said, by default, it's Hara, we're not allowed to do it. Well, the CDs contains some knowledge. And the owner or the maker of these CDs, these programs did not say did not say

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that it is forbidden for everyone to use them for public use, or for private use. If he doesn't, the owner of this program does not give these details. And he did contain some knowledge and you could not acquire the original copy, you are allowed as a person as an individual to use them for private use,

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but not to make copies and sell them in the market to make profit from them.

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But if he says, if the maker of these programs says that, in some of them, they said before, when you when you play the CD, they will tell you, oh say oxy mobila I swear by the name of Allah. This is very common in Arabic CDs and Arabic programs, I don't know if it is, say I swear by Allah that this copy is the original copy, I'm using the original copy.

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And here you have a problem. I mean, if you have, if you don't have an original copy, either know what you're going to do, it depends on your tackle and consciousness and so, here

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So, the point is,

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if he says in detail that all public and private uses forbidden then you have to get his permission. If he makes a general statement, then you can use them for private use if there is no alternative or low to *

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by let's talk a little bit about

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Alaska, Alaska is an Arabic word for contract.

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So, that these are the you know these are formal definitions like this is from Moshe

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Moshe higher on a book called emotional higher and the combination of an offer emanating from one of the two contracting parties with acceptance by the other in a manner that it affects the subject matter what is the subject matter in the contract of sale isn't maybe the commodity that you are selling. So, there is a

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you know an offer that is coming from the seller, an acceptance that is coming from the buyer or an offer coming from the buyer acceptance coming from the seller, and there should be a combination between the two of them in the same trading session feel much less elaborate.

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Okay, and some of them has defined elaborate as already said the lab takes place when two parties and their take obligation in respect of any matter. But then up the Nika has the word is up what is a contract. So merola they said they said is a contract with love.

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So it is a contract. There are two parties they come together and they make a sealer is a combination between an offer and acceptance. So wish to community service deservers epigenetic allows you to get married with my daughter.

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You know, I accepted to get married with your daughter. So there is a contract and there is a seal. That's why but in attadale Bay, in the sale in the contract of sale, we don't have to have shoe hood. It is recommended to have witnesses.

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Okay, it is recommended especially if you are selling a house for example, or selling a very expensive car. It is recommended. You don't have to have witnesses, but in the act of nica, you have to have witnesses.

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So, the offer is called in fact in the books of fertile Asia and acceptance is called El kabu. These are the two terms of a car or the form of the contract.

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And basically, that the different based on the definitions different definitions of the sale of contract, the contract of sale sorry. A contract involves the existence of two parties. A lackey then we call them an RP Dan. And the issuance of an outward act indicating the some internal internal willingness or consent. Even if you don't say it verbally, there should be something that indicate that you are happy with the deal that you want.

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To be involved in this deal, you want to make this deal.

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So, there is should be something

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it could be physical gesture, bodily emotion, anything that indicates your willingness to make this deal

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and as I said an offer in Asia and Kaboul acceptance and subject matter and contractual this in general contractual obligations, when you sell something, you have the obligation to deliver what you have sold and the buyer has the obligation to deliver the price these are contractual obligations, if there is a run there is a pledge mithuna is a deferred sale or a credit sale and the seller is asking for a run or a pledge then it is your your you know obligation or your responsibility to deliver a run and it should be a non perishable because if you

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cannot you cannot give him a run something that can that is perishable, that will perish within two days or three days. Now, what are the essential element of a run of elapid

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these, this is the view based on the view of majority of scholars these are these are our kernel bare

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three elements, if they are not there or they are not do not exist properly, then the sale is not valid. And the first one is the form of Siva, which is composed or combined, composed of the offer and the acceptance and the contracting parties have to have to have two parties can you sell to yourself?

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Yes, there are some there are some modern actually transactions

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in a so Kook, now a big company with create a smaller company, surely care to media and the sell to them their products and then buy them again from them. But they're actually selling to themselves and buying from themselves just for

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to make their their business transaction legally valid.

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Anyway, these are some issues that have, you know, arise in the modern age within Islamic finance. So we have two contracting parties, and we have the subject matter and maybe our seminar, the price

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form of the contract, the ruler, Maddy said, it has to be in a clear language. So if you speak Chinese and the guy, the guy speaks English, and he don't, you know, we don't understand each other, there could be some problem.

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If you make a deal and venue later on, you discover that he has cheated you

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know, so, these this you know, this condition has to be there. And then they said it has to be in clear language, and it has to be unconditional, when they say unconditional free of conditions that might,

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you know, render the contract invalid, or might challenge the conclusion of the contract. Because you are allowed to make add another contract, any condition that is held that is permissible. Mathurin a sharp, if you want to put a condition, I want to buy this car with you, I will take it but I want

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you know, a period of time, an option to cancel, I want to have an option to cancel this transaction for a period of time for 15 days. In other words, if I don't like this car, I have the right to return it within 15 days. So how there is a mahira short here a short it's an option, and it is Helen. So when they say unconditional, they don't mean these shuru these conditions that are permissible, the mean conditions that may raise the level of uncertainty in the in the business transaction or they might challenge the conclusion of the deal. This is what they mean and then we'll talk about some of them for example, the owner in the classical you know sources of faculty

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say beer Touka has a shade method and a B Roca the shade in them it is eight Wednesday it comes back from his trip or when my father comes back from his trip. So, these are shows that are mentioned in the books and decide if these conditions are there than the sale is not always a malbay and Moloch. Lacking this it will allow you to add on and there is a second opinion. And I I feel inclined towards the second opinion that this sale is conditional

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is valid if it is time bound

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okay if it is method and you tell him I will sell this car for you, when my father comes back within a period of 15 days no more than a period of 15 days that means, if his father is late, then he has to make a decision you have to make a decision within 15 days. If there is a time limit, then these conditions are fine and obey and Moloch becomes Hillel becomes permissible. Okay.

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There are some other examples another example that the owner may have mentioned in their books, Alberto, Alberto LMA, Sarah, and in our cell, I would like to buy this item from you. I don't have money, I'll pay you back whenever it's easy for me to pay you back or when Allah subhanaw taala makes it easy for me to pay you back. Let me say hello bellami

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it's very common. Allah may say hello, Bill and I don't have money now. But when Allah Allah to Allah grants me some money. I will pay you back. It doesn't sound good, right? It doesn't sound correct. There is some horror here. Because you don't know when Allah Allah will give you some money, right? But there are some animals that actually no this is Hillel. Because there is a hadith about it. I showed the Allah told Rasulullah sallallahu alayhi wa sallam palatina Fudan Kadeem Allahu bassoon Mina shama ziani garments, close fellow Botha La e and e ob, aka cell benei Isla mais sobre

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la la ventana.

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So I shadowed the Alona said so and so as he received some garments or some clothes from the area of Sham greatest Syria that time used to include Syria nowadays, Lebanon,

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Jordan, and Palestine, all this area.

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So, you may What if you send someone to him, and ask him to buy to sell to you to two ropes to thobes.

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And you pay him back whenever Allah subhanaw taala would make it easy for you to to pay him back. So that's one lesson and send someone to him. But the guy refused. Hello, Adam, if he's Muslim, if he's here, who the face is when it could be a good Muslim because Jabba the olana one time I sell him ask him to buy him so to buy to sell him something to sell his camel and he refused in the first time. So law says I'm asking for the second time and then he accepted to sell his camels to him. But no matter how powerful they allow, and one time Rasul Allah says in him, asked him to sell his camels to him. And then he said, It's yours. said no, I want to buy it from you. He said, then I will sell

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it to

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Rama ricotta right away. He said, it's your Sierra Salalah.

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Now he bought it for a reason. They were traveling together.

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And then this camel used to belong to Omar mahato who was writing that camel is his son, Abdullah. Norman, and this cabin was very active. And he used to be ahead of the caravan there Omar did not like it. It felt embarrassed because they also lost I sell them and the other Sahaba were in the group with an Abdullah who would go ahead time to time with his camel so Omar will tell him come back go back

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last lesson and did not like this this scene so he told her Mr. Sell me your camel. He said it's yours Oh Rasulullah said no I want to buy it from you. He said okay, I will sell it to you. Then he sold it and he gave it to Abdullah Omar

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and you know do do with whatever you want.

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So based on this heavy that was collected by a madman hacking and very happy and hacking he said it's so he the hubby will photo How did he say and also this ad this actually this concept is reinforcing what Allah Subhana Allah said in the ayah to for Riba in the era to for Riba, Allah subhanaw taala said, we cannot do research in front of the rotten Illa Mesa if someone is facing some hardship, then let be let there be delay. until Allah Subhana Allah Allah will make it easy for him to pay you back. So you know this hadith is actually confirming what Allah Subhana Allah said in those areas in Surah Al Baqarah fenati Ratan ala Mesa, so it's okay to buy something LMA Sarah,

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yeah, and it's okay. You don't feel until you unless you know that the person is not, you know, honest. We shouldn't do it from day one.

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And oh, he comes to said okay, I would like to buy this item from you, and I'll pay you and Allah, Allah makes it easy for you but you know that this man

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This man had stories in the community and you know about his stories, then it is your problem if you sell him, right? No, I want my money upfront.

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By the second condition, the family said there has to be some conformity of all there, there has to be conformity of the offer, with acceptance on the subject matter. So someone would say I would I sold you my car for $2,000 or $4,000. And the other guy would say, I got married with his daughter.

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I'm sure I'm talking about my car is I'm not interested in your car interested in your daughter. So there is no conformity on the on the subject matter ledger, tell us how Lola and marco de la

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vida, Alicia, were eligible.

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And they said also, the offer and acceptance should be in the same trading session. He must be selected. And the same trading session, which means now you give me an offer, give me an offer now. And then I will think about it.

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And then we'll leave everyone leaves after the salad with any leave to your house or leave to my house and then tomorrow.

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We meet again, is the offer the same offer is still valid or not. By default is not valid. We have to make another offer. You cannot tell me I cannot tell you that oh you made an offer is today it is my acceptance. I'm buying your item now or emotion dies or your car. No, this is not by default, these offer will be cancelled. If the trading session has terminated without the conclusion of the sale, without any without any agreement.

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This there is a promise Yes.

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There is a promise, you know the summer lemma. He said the end it's okay. Even if you give out a boon, the down payment? It's okay, it's fine. If you buy if you conclude the agreement or the sale, that our bond will be part of the price. And if you don't, then the urban the down payment is the right of the seller he can take.

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Yeah, if you didn't give him any promise, you can sell it.

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Yeah, you can sell it. But the earlier Maddy said, and it's not ethical to break your promise. is the difference between what is ethical and what is legally binding. When you make a deal, when you conclude the deal, then you are not allowed to break the deal.

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You know, but when you promise someone

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to talk about it, it could be allowable is not I'm not talking about cherry I hear ethically it could be it could be ethically not acceptable.

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is not nice? Because there is a controversy between the earlier are we legally accountable for promises or breaking our promises or not.

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So the the conclusion about this, you know, controversy about breaking out giving and breaking promises is that if the other person who you have promised something, if he act upon this promise, like you tell him within you know you have an ugly house, break this house, give you money and wealthy build another house and the guy who goes and breaks and start breaking his house, or demolishing demolishing it would say is that demolishing his house, okay, or you need to get married, go and ask for the hand of so and so. Make a Deal with the Father. Okay, make a contract. I know you don't have money I give you 5000 and then you you rely on my word, ego, make a contract

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akademika with a father, you're happy, Mashallah, you have 5000 in your pocket, you're gonna start your family life. And then after one week, we'll let you come to me and he said, You know, I'm sorry, I don't have this money. It was just joking. It was just, you know, so here legally, legally, you have the right in Islam, to sue these men

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to go to the judge and complain, make a complaint about this man that he has promised. And I acted upon his promise.

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I don't know about the Canadian law. But this is the conclusion regarding the controversy about breaking promises. Otherwise it becomes you know,

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recommended to to, to fulfill the promises will allow you to

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play. So this is the offer and acceptance should be in the same trading session or mostly sell out how about if you are making a sale? on the phone? You don't see the person you're not in the same trading session you're not in the same measureless?

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Is it helpful or not buying through internet?

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Who is the offer? Where is the acceptance? Where is the job and the Where is much less elapid

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sending a fax to someone sending an email

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telling him that I'm buying or this is my offer

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these forms of making contract

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are they are the correct? Are they valid in Sharia?

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Allah l had etha Yes,

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yes, so, the owner of the

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Muslim fit council made actually a decision about all these modern means and ways of making contract, they said actually, all of them are valid, except this add in self and asylum, what is a sort of is the exchange of money, because a cupboard is a must is an obligation, I will cover the possession to take the you know, exchanging money to receive your money and you give you deliver the money that you are exchanging. But the sad some of them actually the second one, Now, wait a minute, nowadays, you can you can transfer your money on the spot to someone else who is in a different country, and he might receive it on the spotlight through Western Union, if you send money to

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someone else, they will tell you in Western Union, you will receive it within 10 minutes or 15 minutes, right, they will tell you that I have heard this before. So these are the if this is the case, when it is holiday, it is permissible and we have something called constructive possession and come to me and comes and help me one, you don't get it in your hand. But it is for example in your it comes to your bank account.

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With one condition that you have immediate access to your bank account, you have immediate access to this, you know item of sale or whatever you have exchange we're talking about sort of here, exchange of money, I sell them, it's another form of sale, where you have to pay the price immediately on the spot. Usually it is discounted and you deliver the other party will deliver the merchandise usually it is agriculture, you know food or vegetables, you deliver them or grains, you deliver them after a certain period of time within a certain era after six months or one year.

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So, you give the price upfront and you receive your visa your merchandise after an agreed upon period of time it has to be agreed upon and this visa has to be well described. So there will be no uncertainties. There will be no Shahada and then we eliminate the sources of

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sources of what of dispute. So this is as I said, this is one of mikaze the Sharia in filk of business transaction that we always try to eliminate sources of dispute. There will be no Nisa, can we leave the questions till the end? There is a brother who requested actually from the last Hallock I said if we leave the questions till the end it will be better reload to Allah Allah

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the offer and the acceptance that they said they can be conveyed in a number of ways.

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And there is no particular words there are no particular words. There are no specific words and there is no word like methylene

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any other abhi Rocha I have sold to you this call for 4000 and the person has to wait a minute I say Jose, my statement I have bought No, it's okay. It's fine. Any any statement you make that indicate that you are buying from the other person the other person is selling to you should be fine in Sharia. And that's why they should talk about Bayer and I thought what is better and my thought is it is a sale conducted by means of physical delivery without any spoken form of contract. You don't say anything you come you go to the store. You pick up your food or milk or whatever drink you go to the cashier gave her money. Don't say a word. She's

00:35:00 --> 00:35:17

doesn't say anything. Just take the money, take your drink and you leave. Is it a valid sale or not? Based on the opinion of majority of scholars, yes, it is valid a valid sale and it is called Bay and Malta in the shelf, it might have said no.

00:35:18 --> 00:35:58

But how is it possible to say any this sale is not is not valid. But when we say some of them, this is this is our opinion, but we advise you to follow the opinion of the majority of scholars. So, what's the point why you are like making this statement? It is not reasonable. I mean, it's impossible to make a business without, you know, I mean, it's very common, this made the point is very common, everyone needs it. So you find something in the store, and then you go and take it, you don't have to say anything, this is an indication that you want it, the fact that you picked it up from the shelf, and you brought it in front of the cashier, it's an indication that you're buying

00:35:58 --> 00:36:03

this, this item. So this is called Bay l market.

00:36:04 --> 00:36:32

Fame. Let's talk about No, what invalidates the offer. So the owner met, he said, if the first party of the seller or the buyer withdraws his his offer, then the offer is invalid is cancelled. In the same trading session, if they're one of the two parties passes away, before the sale is included, then the offer is canceled.

00:36:33 --> 00:36:56

And the inheritance or whatever, they don't have the right to come and say our father was selling his car for you was buying this car from you, and then he passed away, then we have the right to continue to complete the transaction. No, it is canceled, he passed away in the noiseless overlap, it is canceled, all the sad he loses the capacity to make

00:36:57 --> 00:37:02

to complete the business transaction, he loses the capacity, could you give me an example

00:37:05 --> 00:37:07

he became a crazy, he becomes a crazy

00:37:08 --> 00:37:35

or mentally sick. In the same trading session now is a different person, you cannot complete the transaction with him. Or the set determination of the contractual session without any agreement. Like we were talking with the brother, you leave and that's it without any promise without anything. That's it, we didn't make any deal hamdulillah next time or they said destruction of the subject matter.

00:37:36 --> 00:37:38

You're talking about something

00:37:40 --> 00:38:25

trying to negotiate a deal about method a bag of the grain for example, and suddenly you get a heavy rain and the grain is destroyed is on the floor you cannot sell it you cannot buy it you cannot use it Okay, then the offer is cancelled. And the buyer or the seller does not have to ask for a replacement or anything. All we said at the end lapse of the time fix for acceptance, if there is a time fixed for acceptance, like the brother, he said, if he gives a promise till tomorrow, my friend for example, 24 hours and 24 hours has passed. And you have the right to sell it to someone else. And the first offer is cancelled without Allah.

00:38:26 --> 00:38:51

So the net let's talk about the elements of the subject matter and maybe the roadmap he said it is either a commodity seller, or the performance of an act like an accountant, you hire an accountant, you hire a lawyer, you hire someone who would give you a service. He's not telling you anything, but he's selling his services consultant now consultant

00:38:52 --> 00:39:18

or, or a counselor is not you're paying him. He's not selling any thing to you beside his, you know, counseling, you know, his expertise. So you can hire him he can, you know, pay money for this service. These are they should be existing, it should exist is not something that will happen in the future. With one exception, what is the exception?

00:39:21 --> 00:39:59

Buy or Sell and future sales? Yeah, future sales in all here. This is a very vague translation of being a seller. It's better to say very seldom because there are different types of future sales in the market in the stock market. So let's say buy or sell and buy or sell them pay the price and you expect the person to deliver this merchandise to you after six months, or at least this law after the list is now manufacturing. You make an order. This is Hello. It does not exist. Okay in 2000. And you know, it doesn't have to be upfront like a solemn, you can pay on installments. We have a listener, a listener and the person

00:40:00 --> 00:40:26

The owner of the factory will say, I'll make this you know this sofa for you, and it will be ready within two months or three months. So, it does not exist, but the owner of the company, the owner of the business is promising you to provide this sofa with this description, it has the details and the terms of the sale have to be clear, and they have to be agreed upon, you have to talk about all the details.

00:40:27 --> 00:41:02

Okay, so, these are exceptions for this, you know, for this condition here, it should be existing and it should have a value, we say the material value or a legal value, and it should be eligible for ownership, someone comes in wants to sell you a public property. No, it's not his property, he doesn't own it and you cannot own it. You cannot own it. So he's not eligible for ownership. So you cannot it cannot be subject to the subject matter of a sale it has to be owned by the seller

00:41:03 --> 00:41:10

may rumalaya music can I use like an anti MLM like you are not allowed to sell what you don't own?

00:41:12 --> 00:41:26

You are not allowed to do that. And we have something called short selling in the in the stock market nowadays. What is the idea? What is the basic idea of short sales in the in the stock market? Can you give me an idea those who are involved in the stock market?

00:41:34 --> 00:41:35

So they can

00:41:38 --> 00:41:42

you borrow the shares, okay, for fees,

00:41:50 --> 00:42:02

pay them back. And then and then back to them. So let's example metallian, the shares of a company are worth $20 in the markets or $25, or whatever,

00:42:03 --> 00:42:32

then the guy would borrow them from this company and sell them for let's say, let's say let's say he bought 1000 chairs for $25. You would sell them on the spot, the market price with the market price on that day, he will make 25,000 right 1000 chairs for $25. So what is his plan now, in his short selling, he's planning or he's hoping he's hoping, hoping that the prices will go down.

00:42:33 --> 00:42:49

So after one week, we'll have because there is an agreement, of course, that you have to give me my shares back within a month or two months. When he has to wait, he's watching the markets watching and his sugar level is going up and down. You know and watching the market

00:42:50 --> 00:42:53

is going to the doctor at the same time.

00:42:54 --> 00:43:08

And then if the prices go down, like what 20 or $20 or $15 for one share, then what will happen right away he will buy he will buy these these shares 1000 chairs, how much he bought them

00:43:10 --> 00:43:15

20,000 for example, how much he sold them 25 What is the difference?

00:43:16 --> 00:43:19

5000 in his pocket minus his fees.

00:43:20 --> 00:43:22

The fees that he you know,

00:43:24 --> 00:43:33

he gave them to the previous owner, Alex a month and the fees were 1000 then 5000 minus 1000. He made 4000 is it halal or haram?

00:43:34 --> 00:43:58

There is there is an agreement between all Muslim scholars that this is forbidden transaction it's haram Nanak to be mad at me like you're just borrowing you don't own them. They are not in your name. You're just borrowing them. You're just making an agreement. You don't say no on these shares. Your name is not there in the company. You didn't buy the stock.

00:43:59 --> 00:44:03

Can we leave the answer okay. But we finished quickly and then

00:44:05 --> 00:44:10

time eligible to be delivered. If you are not able to deliver something can you sell it?

00:44:12 --> 00:44:18

But there are people who do make these contracts are crazy people who make this contract.

00:44:19 --> 00:44:22

Someone who got his car stolen.

00:44:23 --> 00:44:41

This car was stolen and he will want to make a bargain with someone. This car is worth 1000 he's not sure if he will get his car back or not. He will come to someone and other crazy person will tell him I will sell my car for you that is a stolen and I don't know where it is now. For 5000

00:44:43 --> 00:44:51

do you think the person will go into this will make this deal? He might because he said if he finds his car. It's worth how much

00:44:53 --> 00:44:59

10,000 it's a good deal. It's an excellent deal. Of course in the source Islamic for the

00:45:00 --> 00:45:10

Classical sources of fertility, say Carmel they talk about camels, last camels and last, you know animals. Nowadays you talk about cars and bicycles and those things.

00:45:11 --> 00:45:20

So So if it was stolen or lost, he might sell it with a discounted price. If it is not found, he got this money,

00:45:21 --> 00:45:33

he got this 5000 He's the owner, he's the winner. I mean, he's the winner. If the car is found intact, as it is, it is worth 10,000. So who is the winner Now,

00:45:34 --> 00:46:03

the other party had a lot of and that's why it is it is haram. So, if you are not able to deliver the item of sale or the subject matter, you cannot sell it and it aroma D said it has to be specified. You have to if it has to there are two cases two options, either the subject method has to be in front of you, you expect it you see it and you are happy with it, or it has to be described well described to you.

00:46:04 --> 00:46:30

And it is possible it is hilarious. If it is well described to you, then it is it's okay you can make a sale with these conditions has to be specified has to be quantified. If you're talking. If you're buying rice or grain or anything, then you have to talk about quantity, how much you are buying, or how much you are selling will allow to allow them if you have some questions before we place a little issue, inshallah. We'll talk about types of contracts in Sharla in the in the next halaqa.

00:46:31 --> 00:46:31


00:46:33 --> 00:46:49

So I heard about one person who had a business to sell some electronics or something. And he didn't have them with him. But when a customer came that actually want this electronic back, okay, give me three weeks, and we'll order them from now.

00:46:57 --> 00:47:02

If it is selling based on a salami and the price is fully paid, is fully paid.

00:47:05 --> 00:47:07

I know but the only exception is asylum.

00:47:09 --> 00:47:37

If it is paid, and the product is well described, the buyer knows what he's buying. And there is a period of time that is agreed upon, then it could be highlighted in this case, if the route of asylum are there, otherwise, it is not valid. Yeah, if he doesn't give him anything, we'll give him only part of the price down payment method is not valid with a seller. You cannot give a down payment with a seller you have to pay full price. Yeah.

00:47:55 --> 00:47:56

He's your agent.

00:47:58 --> 00:48:36

Yeah, you can of course, you can assign, you can assign an agent all the time. There is something called beta alpha Dooley Barrett Foley. And Foley in Arabic is the one who interferes with others business. Gamma is your cousin or your friend, and you are traveling and he left here your car with him. And then he someone comes to him and said, I'll give you 7000 for this car. So while there's a great deal, and now I have to sell it, it cannot wait until I'm in all the customer will we lose the customer? So he doesn't even make the call because he's confident that this is a great this is a wonderful deal. And his cousin or his friend will be very happy with the deal. And then he would

00:48:36 --> 00:48:39

sell it and then you come back from your trip you say no, I want my car.

00:48:40 --> 00:48:43

So, what is the what is the solution here?

00:48:44 --> 00:49:32

How can we solve it? Yeah, the owner maybe said balefully is is not valid is valid if the previous owner the original owner, pending and the approval of the owner, if the owner agrees that it is a valid and it should be concluded, valid sale and should be concluded. If the owner does not agree, does not give a give his approval, then the the sale should be should be canceled. And you should get the car back. But you have the right to give a sidewalk Allah to someone. agency, it's a contract is another contract in Sharia. It's called contract with agency. You have a working your cousin or your family member or a friend, give him work Allah even to make a marriage contract. It

00:49:32 --> 00:49:53

is hella someone on your behalf. We'd go to the father of that lady and make a marriage contract on behalf of you. So this is actual Karla and we'll talk about it shortly in the future. If you have time I'm making many promises allow them yeah, and hopefully make it to me that Allah, Allah will give me the power to fulfill these promises within this

00:49:54 --> 00:49:57

how you have five or six sessions left alone.

00:50:00 --> 00:50:19

In the contract, so you know, when you go buy a product, they tell you what is the return policy 14 days, if you're not satisfied, you can bring it back? What is the ruling? If you go, you know, you actually need this because you need it for product two days. So you take it, and you sure you're going to return it back left, because you're unsatisfied. Just because you don't need it anymore.

00:50:22 --> 00:50:28

That's a good question. Then you buy it with the intention of returning it, there was many talaaq

00:50:34 --> 00:51:17

Actually, this inshallah the will something that we research, it is shown, I don't have an answer for that. Because you know, this is a short, there is no, there is no disagreement that this is helpful. If you have a shot, you return it within 15 days. But now you are you are mentioning here, a different element is your intention. No, you don't have the intention to make a permanent sale, you know what I mean? So here's something that we need to, you know, basically is, there are the the roadmap effect, there are two groups that are odema, who look at the form of the contract. And there are odema, who looked at the maqasid, the substance of the contract. So the form like a chef in the

00:51:17 --> 00:51:23

chef is a school of thought they always look at the form of the contract. So based on the form looks very

00:51:24 --> 00:51:38

looks right? Everything is fine. Then based on this, they would say the sale is basically in general, generally speaking, I'm not giving fatalis he was just giving you information about you know, different school of thought, different methods,

00:51:39 --> 00:51:55

they are another group of scholar, now they look at the max at the end result, or sometimes always the intention of the of the contracting parties. So allow them this is something that they just need to look at it and show

00:52:06 --> 00:52:07

what kind of service

00:52:11 --> 00:52:13

Yeah, okay.

00:52:17 --> 00:52:20

But what kind of difference here and you are concerned about

00:52:29 --> 00:52:40

we own the skills, you have the power to deliver the services, you know, what they mean, and this is after the genre is not academia, there are differences between hiring,

00:52:41 --> 00:53:20

transaction, or lease, or renting, and between sale. So this is hiring, I'm hiring when they hire you, I hire you, I know that you're gonna give me I know what you're going to give me what you're going to sell to me, your services, they don't exist, but you have the ability as a person to deliver those services. And it's not a sale, we're not talking about sale here. era has a different has different conditions and different rules. inshallah, and this is this is something really important nowadays, in the modern age, to distinguish to know the conditions of era, and the conditions of a sale, because there are some Muslim, Islamic institutions are selling houses and

00:53:20 --> 00:54:04

selling stuff in the market, they're combining between these kind of, you know, contracts. And many, most of the people don't know that these contracts have different conditions. So using the names basically. And the names look very Islamic hamdulillah Yara, I don't want to mention the names of some companies. I think I didn't know what era means and what are the conditions of each era? You know, it is really important to inshallah, we'll talk about ijarah itself as a contract. What are the rules of ijarah? What are the rules of sale, there are differences. And when you combine between them, you might you might create some problems, you might create a mess, or you might create

00:54:04 --> 00:54:27

injustice, them, you know what I mean? So inshallah, this is something that we need to talk about it. But basically, this is not a sale, this is a hiring transaction, and it has some different rules. And it's fine to hire someone, you know, you don't see anything tangible in front of you. But you are sure that he is capable to deliver his services, like an accountant or a lawyer or a counselor.

00:54:31 --> 00:54:32


00:54:33 --> 00:54:39

But most internet transactions have fine prints. So let's say I have a product on the internet that I want to sell.

00:54:40 --> 00:54:49

But do I have to have the fine prints on the front page? Or do I do it like everyone else that says, You see people so put it on third page and make it really long?

00:54:51 --> 00:54:51


00:54:54 --> 00:55:00

Yeah, as a Muslim trader, you have to make your terms clear to the customers as the most

00:55:00 --> 00:55:00

It's great

00:55:02 --> 00:55:50

to be in the safe side don't follow the ways that are used. No, because we have many, you know, contracts that are now nowadays we're dealing with them islamically they are not acceptable, but they're earlier they said, We didn't have a choice like I as asthma in the first HELOC. I mentioned something called adhesion contracts, right, or coding event, where as a buyer, you have no say in the contract, you have no choice you have, you don't have the power to negotiate any term of the contract. It's a form, standard form contracts leopoldina mateja, they're called in Arabic. You just you take it or leave it, either you sign it, or buy the phone, ask for the service. And that's it.

00:55:50 --> 00:56:41

And we take your word in the phone. And the are you press subscribe to their you know, to their services, and you have no choice. So, there are no when they talk about tarazi mutual consent, they talk about something in the modern age, they call it meeting of minds, meeting of minds that everyone has the right for full information about the products in the modern age. This is what we do. We tell you to give you some information. And we put you know some information at the bottom of the page, which is fine print. You know, it's everyone knows about it, but it is now accepted. It became very common in our societies and people are fine with it and they are signing contracts with

00:56:41 --> 00:56:57

this form and shape. But islamically as a Muslim trader you have to be clear with your customers without them. I think we need to stop here because it's five past past eight cizek como lo halen continue next. helicon Sharma Chronicle O'Mahony shadow Lola in Memphis, Africa

Fiqh of Business Transactions Contracts by Sheikh Hacene Chebbani


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