Good Faith Principles in Islamic Contract Law: A Comparative Study with Western Contract Law

Abstract

Purpose - Every country needs smooth, reliable, and efficient business growth, both domestically and internationally. Nevertheless, every country differs in terms of its legal, political, cultural, and religious environments and backgrounds, and therefore possesses specific rules and regulations for launching international business. In this context, this research presents a comparative analysis of the good faith principle of Islamic contract law with existing civil and common law. Design/methodology/approach - Descriptive and analytical research methodology was adopted in this study in which relevant materials (verses) have been collected from the Holy Quran, Islamic books, different research papers, and web sites. Findings - This analysis reveals that the good faith principle of Islamic contract law is more business friendly, comprehensive, simple, and realistic, based on honesty and fairness in a business transaction. The good faith principle of Islamic contract law covers all stages of a contract. Research implications or Originality - The good faith principle comprises the prescribed laws, religious, and cultural-backed obligations, as well as trust and fair dealing. Therefore, the good faith principles of different regions, countries, cultures, and religions need to be investigated in order to increase the efficiency of international business. This study could provide a lesson for many lawmakers.