INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE

Kulliyyah / Institute Ahmad Ibrahim Kulliyyah of Laws

Department / Centre Islamic Law

Programme Bachelor of Laws (LL.B)

Name of Course / Mode Transactions in Islamic Law II

Course Code SHA 1411

Dr .Asma AkliSoualhi (Course coordinator )

Ext:4218
Email: akliasma@iium.edu.my
Name (s) of Academic staff /
Instructor(s)
Dr. SafinarSalleh
Ext:4384
Email : safinar@iium.edu.my

This course is a core course required for the LL.B programme as

Rationale for the inclusion
specified by Malaysia’s Legal Profession Qualifying Board and the
of the course / module in the
Malaysian Qualifications Agency.
programme

Semester and Year Offered Every Regular Semester

Status Core

Level 1

Proposed Start Date Semester1 & 2, 2015/2016

Batch of Students to be
Intake of 2005/2006 onwards
Affected

1
 Face to Face

Consultation
Tutorials
Lectures
Total Guided and

Others
Total Student Learning Independent Learning
Time (SLT)

28 12 2 78 120

Credit Value (hours) 3

Pre-requisites None

Co-requisites None
The objectives of this course to:
1. Study the legal concepts and theories of various types of contracts
recognized by Islamic law.
2. Identify the Islamic contracts based on their distinguished categories
such as sale based contracts, lease based contracts, profit and loss
Course Objectives
sharing contracts and securities contracts.
3. Identify the differences and similarities between different types of
Islamic contracts.
4. Relate the legal concepts and theories of Islamic contracts to current
practices of Islamic commercial transactions.
Upon completion of this course, students should be able to:
1. Explain the legal concepts and theories of various types of contracts
recognised by Islamic law.( CS3, LL1, C2, P2, A2)
2. Describe the Islamic contracts based on their distinguished
categories such as sale based contracts, lease based contracts, profit
and loss sharing contracts and securities contracts.( CS3, CT3,
Learning Outcomes
LL1, C1,P2,A2)
3. Apply the principles of Islamic contracts according to different
types of contract.( CS3, CT3, LL2, C3,P3,A3)
4. Analyse the application of Islamic law of contracts to current
practices of Islamic commercial transactions.
(CS3,CT3,LL2,C4,P3,A3)
1. Reading and writing skills are inculcated throughout the course
when students are required to refer to statutes, cases, required and
recommended readings to assist in comprehension of the course.
2. Communication skills encompassing oral and written skills are
further developed during tutorials when students attempt tutorial
Transferable Skills: problems.
3. The ability to identify legal issues in a given problem and problem
solving skills are developed through tutorials and assignments.
4. Teamwork skills are developed through group work when
completing assignments.

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 Types of Assessment Description
Lectures Co-operative learning
Teaching-Learning / Combination of coursework
assessment strategy Discussion evaluation and final written
examination.
Problem solving through groupwork
Problem Based Learning and submission of a legal opinion to
solve the legal problem.
This course deals with the Islamic legal concepts and theories of various
types of contract that are divided into four main categories. They are 1)
‘uq©d al-buy©‘ (sale-based contracts) such as al-bay‘ (sale), bay‘ al-salam
(forward sale), bay‘ al-istiÉn‘ (manufacturing), bay‘ al-Sarf(money
exchange), bay‘ al-‘inah (sale and buy back) and bay‘ al-dayn (sale of debt),
2) ‘aqd al-ijarah (leased based contract) such as al-ijrah(leasing), 3) ‘uq©d
al-sharikah (equity-based contracts) such as al-sharikah(partnership) and al-
Course Synopsis
murabah(profit sharing), and 4) ‘uq©d al-takmiliyyah(supplementary
contracts) such as al-wakalah (agency), al-kafalah (guarantee/suretyship),
al-rahn (mortgage) and al-hiwalah (transfer of debts). Discussion of such
contracts includes their meanings, definitions, legality, classifications,
essential elements, conditions, legal consequences and any relevant
principles.

Mode of Delivery Lectures

LO METHOD PERCENTAGE
(%)
ALL Test I (common test 22 /10/2015 15
Assessment Methods and
Type/Course Assessement ALL Assignments 15
State weightage of each type
of assessment. ALL Class Participation 10

ALL Final Examination 60

TOTAL 100

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 Mapping of course / module to the Programme Learning Outcomes
Programme Outcomes
Learning Outcome of the course
01 02 03 04 05 06 07 08 09

Explain the legal concepts and theories of various √ √ √

1.
types of contracts recognised by Islamic law.

2. Describe the Islamic contracts based on th ir √ √ √

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3. Apply the principles of Islamic contracts according
to different types of contract.
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Analyse the application of Islamic law of contracts to √ √ √ √
4. ns.
current practices of Islamic commercial tra
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Content outline of the course / module and the SLT per topic
Learning Task/Reading
Weeks Topics(elaborate the sub-topic)
Hours (author/page/ cases)

Introduction and over view of the course. c

Abdullah (1993). 49-66,
1 1
Razali (1999). 81-91,
Al-bay‘(sale ) 96-104.
Meanings and definitions of al-bay‘ al-ZuÍayli (2003). 1/5-
Legality of al-bay‘ 70, 1/74-78, 1/82-87 &
Essential elements and conditions of al-bay‘ 1/99-100.
Goods and price Kharofa (2001). 65-90.
Majallah. articles 105,
Current practice 151, 152, 167-299.
(Al-Murabaha Qadri (1981). 325.
Al-bay‘biAjal( deferred payment )
Online sale Saleem (2013) 15-17

5
 c
2& 3 4 Abdullah (1993). 66-73.
Bay‘ al-‘Inah(sale and buy back) Razali (1999). 91-96.
Meanings and definitions Razali (1999). 91-96.
Legality al-ZuÍayli (2003). 1/78-
Essential elements and conditions 82 & 1/237-291.

Current practice al-Amine (2001). 6-53.

Bay’ al-‘inahPersonal financing Majallah. articles 121,
123, 124, 380-392.
Bay‘ al-Dayn(sale of debt) Qadri (1981). 325-326.
Meanings and definitions Rayner (n.d.). 118-121
Legality & 134-138.
Essential elements and conditions
Saleem (2013) 8-50
Current issue
Bonds

Bay‘ al-Salam (forward sale).

Meanings and definitions
Legality
Essential elements and conditions
Current application
Sale of agricultural product

Bay‘ al-Istisna’(manufacturing)
Meanings and definitions
Legality
Essential elements and conditions

Current application
Home financing

Bay‘ al-Sarf(money exchange)

Meanings and definitions
Legality
Essential elements and conditions

Current practice
Currency exchange
Sale of gold and jewelers

6
 c
4 &5 2 Abdullah (1993). 104-
Al-Sharikah(profit and loss sharing) 109.
Meanings and definitions of al-sharikah Nyazee (2002). 13-47 &
Legality of al-sharikah 57-235.
Classifications of al-sharikah al-Qadri(1982).199-214.
Essential elements and conditions of al-sharikah Razali (1999). 156-166.
Legal consequences of al-sharikah Saleh (1992). 113-117.
Termination of al-sharikah Siddiqi (1985). 9-10.
Usmani (1999). 203-
Current practice 220.
Musharakahmutanaqisah al-ZuÍayli(2003). 1/447-
Sharikahmusahamah 477.
Khafif (n.d.). 544-548.
Majallah. articles 1329-
1448.
al-Nawawi (1997). 179-
180.
Saleem (2013) 96-109
c
6& 7 2 Abdullah (1993). 86-93.
Al-Mudharabah(profit sharing) Nyazee (2002). 243-276.
Meanings and definitions of al-mudharabah al-Qadri(1982).214-218.
Legality of al-mudharabah Razali (1999). 144-156
Classifications of al-mudharabah &160-166.
Essential elements and conditions of al-mudharabah Saleh (1992). 126-143.
Legal consequences of al-mudharabah Siddiqi (1986). 9-104.
Termination of al-mudharabah Usmani (1999). 203-
220.
Current application al-ZuÍayli(2003). 1/487-
ASB (AmanahSahamBerhad) 521.
Premium saving certificate Khafif (n.d.). 548-553.
Majallah. articles 1404-
1430.
al-Nawawi (1997). 210-
214.
Saleem (2013) 112-121
c
8&9 2 Abdullah (1993). 155-
Al-Ijarah(leased based contract) 168.
Meanings and definitions al-ijarah Coulson (1984). 22-24.
Legality of al-ijarah al-ZuÍayli (2003). 1/383-
Classifications of al-ijarah 434.
Essential elements and conditions al-ijarah
Legal consequences of al-ijarah Khafif (n.d.). 484-502.
Termination of al-ijarah al-Nawawi (1997). 218-
225.
Current application Saleem (2013). 52-65
Hire purchase

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 10 2 Mohammad Deen
Al-Wakalah (agency) (1995). 39-163.
al-ZuÍayli (2003). 1/631-
Meanings and definitions of al-wakalah
689.
Legality of al-wakalah
Classifications of al-wakalah Khafi (n.d.). 332-348
Essential elements and conditions of al-wakalah Majallah. articles 1449-
Legal consequences of al-wakalah 1530.
al-Nawawi (1997). 181-
Termination of al-wakalah 187.
Saleem (2013) 68-78
Current practice
Insurance/takaful agent
c
11 2 Abdullah (1993).146-
Al-Rahn(mortgage) 154.
Meanings and definitions of al-rahn Wan Abd.Rahman
Legality of al-rahn (1995). 5-36.
Essential elements and conditions of al-rahn al-Zu€aylœ (2003).
Legal consequences of al-rahn 2/79-193.
Termination of al-rahn SAleem (2013) 124-127
Khafif (n.d.). 512-526.
Current practice
Al-Rahnu scheme Majallah.articles 701-
761.
al-Nawawi (1997). 152-
160.
c
12 &13 2 Abdullah (1993). 142-
Al-Kafalah(guarantee/suretyship) 146 & 153.
Meanings and definitions of al-kafalah Zainudin (1994). 62-83.
Legality of al-kafalah al-ZuÍayli (2003), 2/3-
Classifications of al-kafalah 45.
Essential elements and conditions of al-kafalah
Legal consequences of al-kafalah Khafif (n.d.). 519-526.
Termination of al-kafalah Majallah. articles 612-
672.
Currentissue al-Nawawi (1997). 175-
Guarantee letter 178.
Charging fee for guarantee

8
 c
14 Al-Hiwalah (transfer of debt ) 1 Abdullh (1993). 181-
Meanings and definitions of al-Hiwalah 183.
Legality of al-Hiwalah Coulson (1984). 29-30.
Classifications of al-Hiwalah al-ZuÍayli (2003). 2/51-
Essential elements and conditions of al-Hiwalah 73.
Legal consequences of al-Hiwalah
Termination of al-Hiwalah Khafif (n.d.) 536-544.
Majallah. articles 673-
Current issue 700.
Check issuing MohdDaud (2000). 160-
Credit or debit card 181.
al-Nawawi (1997). 174-
175.

Required references supporting the course

ENGLISH
c
AbdullahcAlwiHassan (1993). Sales and contracts in early Islamic commercial law. Pakistan:
Islamic Research Institute.
al-Qaradawi, Yusuf (1994). Al-halal wa al-haram fi al-Islam, translated by Kamal El-Hebawy and
others into English “The Lawful and the prohibited in Islam”. Kuala Lumpur: IBT.
Rayner, S.E. (n.d.). The theory of contracts in Islamic law. London: Graham & Trotman.
Razali Nawawi (1999). Commercial transactions: Islamic law perspective. Malaysia: CT
Publications.
Saleh, Nabil A. (1992). Unlawful gain and legitimate profit in Islamic law. London: Graham &
Trotman.
Saleem ,Muhmad Yusuf (20013).Islamic Commercial Law :Jon Wiley Singapore Pte.Ltd

Siddiqi, M.N. (1985). Partnership and profit-sharing in Islamic law. Leicester: The Islamic
Foundation.
Wan Ab. Rahman Wan Abdullah (1995). The law relating to al-rahn in Islam: a comparative study
of the operational of al-rahn in Terengganu, Kelantan and Bank Rakyat. Unpublished MCL
Dissertation. International Islamic University Malaysia.
ZainuddinJaffar (1994). The concept and application of žamn in Islamic commercial law.
Unpublished ThesisPh.D.Universityof Edinburgh.
al-ZuhayliWahbah (2003). Al-Fiqh al-Islamiwa adillatuh. vol. 4 & 5. translated by Mahmoud A.
El- Gamal into English “Financial transactions in Islamic jurisprudence”, vol.1 & 2. 1st. ed.
Damascus: Dar al-Fikr.

Recommended references supporting the course

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Al-Amine, Muhammad al-Bashir Muhammad (2001). Istisna’(manufacturing contract) in Islamic
banking and finance law & practice. Kuala Lumpur: A.S.Noordeen.
Coulson, N.J. (1984). Commercial law in the Gulf States,London: Graham and Trotman.
Kharofa, Ala’ Eddin (2001). Transactions in Islamic law .Kuala Lumpur: A.S. Noordeen.
Majallat al-ahkam al-cadliyyah(1967), translated by C.R. Tyser into English “The Mejelle”,
Lahore: Law Publishing Company.
M.A. Baharum (1988). Misrepresentation: A study of English and Islamic contract law. Kuala
Lumpur: Al-Rahmaniah.
MohdDaudBakar (2000). ‘Hiwalahdalamkonteksperdaganganantarabangsa’. Al-Ahkam. Jilid 7.
160-181.
Mohammad DeenMohdNapiah (1995). The theory of the contract of agency (al-waklah) in Islamic
law. Unpublished ThesisPh.D.GlasgowCaledonianUniversity.
Nyazee, Imran Ahsan Khan (2002). Islamic law of business organization partnerships. Kuala
Lumpur: Islamic Book Trust.
Qadri, Ahmad Anwar (1981). Islamic jurisprudence in the modern world. (2nd. ed./2nd. impr.).
Lahore: Sh. Muhammad Ashraf.

ARABIC

al-Bahuti Mansur b. Yunus b. Idris (1982). Kashshaf al-qinaanmatn al-iqna, vol. 3. Beirut: Dar al-
Fikr.
al-Hattabb, Abu Abd Allah Muhammad b. cAbd al-Rahman (n.d.). Mawahib al-jalœl li
sharhmukhtasarKhalœl, vols. 5 & 6, Tripoli: Maktabah al-Naj€.
Ibn al-Humam, Kamal al-Dœn Muhammad b. cAbd al-Wahid (n.d.). Sharhfathal-qadir. vols. 6 & 7.
Beirut: Dar al-Fikr.
IbnJuzay, Muhammad b. Ahmad (1354 H./1935), Al-Qawanin al- fiqhiyyah, Morocco: Matba’at al-
Naah.
Ibn Qudamah, Abu Muhammad b. cAbd Allah b. Muhammad (1981). Al-mughni. vol.4. Riyadh:
Maktabat al-Riyad al-Hadithah
IbnRushd, Abu al-Walid Muhammad ibn Ahmad ibn Muhammad (n.d.). Bidayat al-mujtahid wa
nihayat al-muqtasid. Beirut: Dar al-Fikr.
al-Jaziri, Abd al-Rahman (n.d.). Kitab al-fiqh calaal-madhahib al-carbacah. vols. 2 & 3. Beirut: Dar
al-Fikr.
al-Kasani, cAla’ al-Deen Abu Bakr b. Mas‘ud (1910). Badaic al-sanaifitartib al-sharaic. Cairo:
Matbacat al-Jamaliyyah.
Khafif, cAli(n.d.). Ahkam al-mucamalat al-shariciyyah, Bahrain: Al-Baraka.
al-Khatib, Muhammad al-Sharbini(n.d.). Mughni al-muhtaj. vol. 2. Beirut: Dar al-Fikr.
al-Nawawi, Yahyab. Sharaf (1985). Rawdat al-talibin wa cumdat al-muftin, vols. 4 & 5, Damascus:
Al-Maktabah al-Islami.

Prepared by: Checked by: Approved by:

10
Dr. Asma Akli Prof. Dr. HunudAbiaKadouf
Department of Islamic Law Dean
Head Ahmad Ibrahim Kulliyyah of Laws
Department of Islamic Law

11
 At the end of the programme, students are able to Keyword
1. Apply relevant laws in resolving disputes/problems, using a multidisciplinary contextual approach (including psychological, socio- Knowledge
economic and spiritual)
2. Problem Solving and
Identify legal issues and problems by listening, reasoning and analysing the particular legal issues, problems and decide upon Scientific Skills
appropriate actions

3. Inculcate Islamic legal principles and harmonize with Civil law Social skills and
Responsibilities
4. Conduct negotiations, interviews and provide solutions
Practical Skills

5. Information
Management and
Seek information and conduct relevant research by using various available methods, including use of technology Lifelong Learning
Skills

6. Communicate with clients and colleagues effectively with mutual respect Communication
Skills
7. Value, Attitudes and
Adhere to the ethics and etiquette of the profession
Professionalism
8. Managerial and
Keep abreast of the development and changes in laws as well as matters that have impact on law
Entrepreneurial Skills
9. Draft relevant legal documents and advice/opinion Leadership and Team
Skills

12