Conditions related to the validity of a contract3 min read

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The conditions related to the validity of a contract are as follows

Conditions related to the validity of a contract

The conditions related to the validity of a contract are as follows

(61) One condition for the validity of a sale contract is that it should be immediately concluded at the time of the contract. Therefore, a sale that is dependent on a condition will not be valid. Similarly, a sale that is contingent upon a future date will also not be valid.

(62) If a sale is conditioned upon an invalid condition, then the sale itself is invalid. The following three types of conditions in a sale, in addition to the conditions required by the contract, are considered invalid:
(a) The condition must be in accordance with the contract. For example, a condition that the seller will deliver the goods to the buyer or that the buyer will provide a security deposit.
(b) The condition must be appropriate to the contract. For example, a condition in a credit sale is that the buyer will make an initial payment or keep collateral.
(c) The condition must be commonly accepted among merchants without objection or denial. For example, a condition in the purchase of a fridge is that the seller will install it in the buyer’s house and provide a warranty for a specified period.

(63) It is not permissible to impose the conditions of one contract on another contract. For example, a car seller cannot impose a condition that the buyer will rent out their house to them. However, if the nature of someone’s business is connected to multiple contracts in one transaction, and it is customary without objection, then it is permissible. For example, a travel agent arranges a pilgrimage or recreational tour. It can include obtaining a visa, purchasing travel tickets, staying in hotels or tents, providing food and water, etc., by taking a defined compensation in one contract.

(64) Sale with deferred payment is not permissible. It occurs when the seller sells something with the condition that when the buyer returns the price, the buyer will return the item to the seller. It is correct that this transaction is similar to a loan, so it is not permissible for the buyer to benefit from such a purchase because it amounts to gaining benefit from a loan, which is considered usury. However, if the condition is not mentioned in the sale, but the buyer has made a promise to the seller that when the seller receives the price, the buyer will sell the item to them, then it is a valid promise, and it becomes binding.

(65) Sale with exploitation means that the seller sells something with the intention of buying the same thing from the buyer on rent. If the condition of re-purchase or renting was included in the sale, then it is not permissible. If there was no condition of fulfilling the obligation in the sale, but the buyer made a separate promise of fulfilling the obligation from the sale, or if there was no condition of rent in the sale, but the seller is taking rent without the previous condition, then it is permissible, provided that the buyer takes possession of the item first and then pays the rent to the seller.

 

(66) الاجارة التمويلية (also known as hire purchase or leasing) is prohibited and considered Haram, according to Sharia. In this type of lease, the lessor does not act as a guarantor for the item rented, nor does it guarantee the essential protection, without which deriving benefit is not possible. Furthermore, the lessee is obligated to continue paying rent even if the item is destroyed without any fault or negligence on their part.

(67) A lease leading to ownership is allowed if the lessor rents out the item without imposing any conditions contrary to the contract, and then the lessor makes a promise that if the lessee continues to pay the full rent on time, the lessor will sell the item to them without any additional payment. Such a lease is permissible under the following conditions:

(68) The lease and sale are separate contracts with distinct and fixed times so that the sale contract is made only after the termination of

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Talha Siddiq

Talha Siddiq

I am an Islamic Scholar. I have expertise in Ahadith, Fiqh, Logics, and the Arabic language. I have a specialty in Islamic finance and Islamic study. To get started with me, Book Now one-to-one Session, or let us know what do you like in the contact form.

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