Bilateral Contracts

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Abstract This chapter focuses on bilateral contracts, which are one of the main types of contracts in Islamic law. In Islamic commercial jurisprudence, bilateral contracts are called ʿuqūd al-muʿāwaḍā. Moreover, bilateral contracts often reflect parallel, corresponding, and conforming promises made by the parties. The chapter enumerates the classification of bilateral contracts in Islamic commercial jurisprudence: general contracts of exchange (ʿuqūd al-muʿāwaḍāt); contracts of security (tawthīqāt); contracts of partnership (shirka); contracts of safe custody (wadīʿa); contracts relating to the utilization of usufruct (manfa ʿa); and ancillary contracts of services. It explains the bilateral contracts that involve sales-based contracts and other similar agreements in Islamic jurisprudence.

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Examination of Preservation of Wealth as a Prime Limb of Maqāṣid Al-Sharīʻah to Justify Bitcoin in Islamic Jurisprudence
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This article adopts a maqāṣid al-sharīʻah approach to dealing with Bitcoin transactions. The Islamic law’s position on Bitcoin transactions is not explicitly clear. Unsurprisingly, Islamic law provides no rulings specific to Bitcoin transactions, as Bitcoin never existed at the time of Prophet (PBUH). Such disparity has created controversy among contemporary Islamic jurists on the permissibility of such transactions. While many Islamic jurists argue for the impermissibility of Bitcoin and any associated transaction involving Bitcoin, few Islamic scholars counter-argue the permissibility of Bitcoin if it is so engineered to fully adhere to Islamic values and principles. The article adopts a legal research (doctrinal) methodology in conformity with its agenda which is to review the Islamic rulings on the impermissibility of bitcoin transactions. This article suggests that the existing disparity is eliminated with a maqāṣid al-sharīʻah approach that takes a broader view of the philosophy and values of Islam linking the explicit rulings of Islamic law and jurisprudence to their implicit objectives. The research findings suggest that bitcoin and any transactions involving bitcoin fail to comply not only the jurisprudential requirements of permissibility but also the implicit objectives of sharīʻah, notably the “preservation of wealth” (ḥifẓ al-māl). This study emphasises that the objectives of sharīʻah must be followed in managing Bitcoin-related entities by formulating corporate objectives and Bitcoin policies complying with maqāṣid al-sharīʻah. Furthermore, these formulated objectives must be incorporated to indicate whether the Bitcoin entity upholds Islamic principles.

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Comparative Study of Damages by Non-performance of Obligations in UNIDROIT Principles, Islamic Jurisprudence and Iranian Laws
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Principles of international commercial contracts have presented doctrines as certain proposed principles on contracts law by aiming at the unification of private law and have dedicated cases and items in addressing the topic of damages. The mentioned principles have foreseen damages such as principles of loss of profit, damages upon substitute transactions, future harm…A number of those damages have no records of being elaborated in the Islamic Jurisprudence and Iranian laws and the possibility of exercising them in Islamic Laws could be discussed. The possibility of reforming compensation and demanding non-pecuniary compensation emerging from breach of contract are among the topics found in the Institute’s principles; and, are proposed to be exercised in the Iranian laws as well. DOI: 10.5901/mjss.2016.v7n6p133

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