Impact of Stipulations, Contingency and Deferment to Future on Sale; Comparative Analysis of Jurists’ Schools of Thought

Abstract

Islamic Shariah has clearly described the outcomes of various financial transactions. If contracting parties perceive these outcomes sufficient for their need, they don’t stipulate any condition in the contract. However sometimes it is recognized by the contractors that one or more conditions should be stipulated in the contract to safeguard their rights or give some extra benefits to anyone or both of them. In some cases it is intended by the contractors to make a contract contingent upon an uncertain future event or defer its effectiveness till a future date. In contemporary world numerous types of conditions are stipulated in various financial contracts. Also several transactions involve contingency or deferment of different financial contracts. There is a possibility that stipulation, contingency and deferment may lead to conflict, exploitation and undue loss to any party. To prevent these consequences, Islamic Shariah has defined the parameters for stipulation in various contracts. Guidelines regarding contingency and deferment of contracts have also been described in Islamic Jurisprudence. Sale is the most common financial contract executed worldwide for business and personal needs. This article presents an analysis of stipulation of conditions in sale as well as making it contingent and deferred in light of Islamic Jurisprudence. Opinions of jurists of four Schools of thought about these issues have also been discussed, analyzed and compared in this article.