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IIUM ledger of political economy and Management 9, no. 2 (2001): 187-201 © 2001 by The International Muslim University Malaysia C IWAë AS A REQUIREMENT OF rule-governed SALE: A CRITICAL epitome Saiful Azhar Rosly* Associate Professor, Department of Economics, Kulliyyah of Economics and Management Sciences, International Muslim University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia. (E-mail: saiful@iiu.edu.my) ABSTRACT This paper will vie that replacing fatheadÅ' with al-bayc does non mean that the latter quarter imply all rebound of exchange (al-bayc) to justify Islamic legitimacy. Apart from the prohibition of uncertainties (gharÅ'r) in barter, the requirement of an equivalent countervalue (ciwaè) moldiness as well be met. Risk (ghurm) and liability (èaman) after sale and value-addition or causa (ikhtiyÅ'r) are the principal components of ciwaè. As such, any increase from sale moldiness contain ciwaè, otherwise ribÅ' is implicated. In neoc lassical Islamic commercial contracts such as ijÅ'rah, salam and muèÅ'rabah, ciwaè is evident. However, the contracts of credit of al-murÅ'baúah or al-bayc bithaman Å'jil are widely apply by Islamic banking practitioners. To prove Islamic legitimacy, this contract must show that the financiers brook the risk of ownership in qualification the sale.

It must similarly show evidence that the seller is liable to the option of fault (khiyÅ'r alc ayb). The same holds for bayc al-cÂ¥nah and bayc al-dayn which are also widely utilise in Islamic money and capital markets in somewhat Muslim countries. JEL classificat ion: G20, K39, Z12 Key haggling: Islamic ba! nking, CIwaè, shoutÅ' 1. INTRODUCTION Differences of opinion in fiqh is not prohibited in Islam unless it involves the fundamentals of Islam, namely the rules (aúkÅ'm), which the QurÅ'n has made abruptly clear by way of its textual evidences (na§). For example, there plenty be no differences of opinion (ikhtilÅ'f) on the *The author is thankful to the anonymous referees for several helpful comments. 188 IIUM Journal of Economics...If you want to vanquish a full essay, order it on our website: BestEssayCheap.com

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