Hanbali Fiqh: Book of Transactions

Explanatory Notes on ​Akhsar al-Mukhtasaraat

By Rameez Abid
Safar 19, 1442 | October 6, 2020

Book of Transactions 3
Conditions for a Valid Contract 3
Selling a Valid and Invalid Commodity in One Transaction 5
Invalid Contracts 5
Conditions Placed in the Contract 7
Al-Khiyaar (Options) 8
Measurement Contracts 14
Interest (Ribaa) 15
Sale of Assets and Fruits 17
Delayed Delivery (Salam) 20
Loans 22
Collateral 23
Guarantee 26
Surety of Appearance 26
Transfer of Debt 27
Reconciliations in Financial Contracts 28
Neighborly Property Rights 29
Financial Legal Disability (Hajr) 30
Preservation of the Wealth of the Mahjoor 32
Guardianship (Wilayah) of the Mahjoor 34
Agency Contract (Wakalah) 35
Partnership (Sharika) 38
Watering of Trees (Musaaqaah) and Cultivation of Lands (Muzaar’ah) 42
Renting/Hiring Contract (Ijarah) 43
Competition (Musaabaqah) 47
Borrowing 48
Usurpation 49
Usage of the Usurped Item 51
Preemption (Shuf’ah) 54
Trusts 56
Revival of Uncultivated Lands 57
Reward for Performing a Task (Ju’alah) 58
Finding Lost Property (Luqatah) 59
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Endowments (Waqf) 60
Gifts (Hibah) 63

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 Book of Transactions
I. Definition for the Arabic word for ​sale​:
A. Linguistic​: When something is given and something is taken between two parties
B. Technical​: It is the exchange of wealth, even when it is only a guarantee to be given at a later
date or a benefit, perpetually without interest and loan
1. So a sale can be for:
a) A specific item that is present
(1) Ex: I sell you an item in my shop
b) A specific item that is absent
(1) Ex: I sell you an item to be delivered at a later date from the warehouse
c) A benefit of some sort
(1) Ex: I allow someone to tour my garden for a fee
II. Pillars​ of a valid contract are ​three​:
A. Contracting parties
1. Meaning there is a buyer and a seller
B. Commodity
1. The goods being sold
C. Formulation of the terms of the contract
1. It defines how the ownership of the commodity will be transferred to the buyer and how
the price of the commodity will be transferred to the seller
2. It could be verbal or based on action even without saying a word because the intention is
understood
III. A ​contract​ can take place in ​two​ ​ways​:
A. Seller and buyer both ​receive​ something
1. This is the contract based on action even though no exchange of words may take place
between the two because it is understood
2. Ex: a buyer goes to a store and purchases a product for cash
a) Seller receives the cash and the buyer receives the product
b) Even if no words were exchanged between them because it is understood
B. Seller and buyer both ​agree​ to move forward with a transaction
1. This is the verbal contract
a) It might be via tongue or through a written contract
2. Ex: a seller works out a written contract with the buyer to sell his home or a seller says, “I
will sell you this car of mine for $2000,” and the buyer responds, “I accept.”

Conditions for a Valid Contract

There are ​seven​ conditions for a contract to be ​valid​:

I. Both parties ​willingly​ ​agree​ to the contract

A. If ​forced​, then it is ​invalid

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 1. Exception​: if a ruler ​intercedes​ on behalf of the buyer because the latter’s rights were
violated in some way, then in this case the ruler can ​force​ the seller to sell based on the
original agreement between the two
II. Both parties be among those for whom it is ​permissible​ to ​conduct​ the contract
A. Related to ​qualification​ and ​competence​. Meaning they should be:
1. Free
a) Because slaves do ​not​ generally own anything and it is ​invalid​ to sell something
one does ​not​ own
2. Pubescent and sane (​mukallaf​)
3. Rasheed​ - those who are mature enough to understand it
a) They need to be able to understand the sale and be able to make a ​decision​ on
it
(1) A small child or a senile cannot understand the sale
(a) It is ​valid​ for children to deal with small priced items but not
complicated or high value contracts that they ​cannot​ grasp
III. There is some sort of ​commodity​ in place for exchange that has ​value
A. The commodity is whatever contains ​permissible​ ​benefit
1. So it is ​invalid​ to sell or buy impermissible things
IV. The commodity should be ​owned​ by the seller or the seller has ​authorization​ from the owner to sell
the commodity on his behalf
A. It is ​invalid​ to sell something one does ​not​ own
V. The seller must have the ​ability​ to ​deliver​ it
A. So he ​cannot​ sell something that is ​not​ in his possession
1. Ex: a seller says, “I will sell you a fish from the sea.” This would make the contract
invalid​ because the particular fish must already be in his possession
B. This condition is there to ​safeguard​ the rights of the buyer so that he is not deceived or loses
money because the seller could not deliver on his promise
VI. They should both ​know​ the commodity by either one of ​two​ ways:
A. Seeing it
1. So that they can see what they are buying or selling
2. If the commodity ​changes​ with ​time​, then you need to view it ​every​ time before
purchase
a) Ex: an animal, fruit, etc.
B. There is a ​sufficient​ ​description​ of the commodity that will be ​delivered​ at a ​later​ date (​salam​)
1. Meaning the description is clear and precise enough so that they both understand what
they are buying or selling, when it will be delivered, where it will be delivered, etc.
a) Ex: the product is in a warehouse and there is an accurate description of the
product online or in a sale flyer
2. There are ​specific​ rules related to a ​salam​ type of transaction that will come later
insha’Allah
VII. The ​exact​ ​price​ of the commodity must be ​known
A. It must be ​clear​ how much a particular commodity will cost ​before​ the deal is finalized, if it is
not, then the transaction is ​invalid
1. There should be no ​hidden​ fees. The ​exact​ amount that the buyer will pay ​must​ be
clear
2. This is to ​safeguard​ the buyer from being cheated or deceived
B. Examples
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 1. It is ​invalid​ if a seller says, “I will sell you such and such item for whatever the amount
for it is in my store.”
a) Because the price is ​unknown
2. It is ​invalid ​if a seller says, “I will sell you such and such for an x amount of gold and
silver.”
a) Because the price is ​unclear ​due to the fact that gold and silver are valued
differently ​and we do ​not ​have a clear picture of what the price of the item is in
gold and/or silver

Selling a Valid and Invalid Commodity in One Transaction

I. Examples of this type of sale include:

A. Someone selling his own property and a property of another ​without​ his permission in the same
sale
B. Someone selling something permissible and impermissible in the same sale
II. This transaction would be considered ​partially valid
A. Meaning the sale for the ​valid​ portion of the commodity would be ​accepted ​but the rest would
be considered ​invalid
1. Ex: a seller sells wine and fruit in the same transaction. The sale for the fruit would be
considered ​valid​, whereas, the sale for the wine would be considered ​invalid
2. Ex: a seller sells his own car and someone else’s car ​without​ his permission in the
same transaction. The sale for his own car is ​valid​, whereas, the other sale is ​invalid
III. In such a case, the buyer has an ​option​ to either ​keep​ the ​valid​ ​portion​ of the sale or ​return​ it for a
full refund
A. Meaning he has the ​right​ to return the item for a full refund
1. Maybe the buyer is not pleased with dividing the transaction and was only interested in
the sale of both items together
2. Ex: a ​buyer​ finds out that the two watches that he was sold only one of them belonged
to the seller while the other was not the seller's right to sell. The buyer must ​return​ the
latter watch to the owner and will receive a refund for that portion of the sale. As for the
first watch, he has a ​choice​ to either ​keep​ it or ​return​ the watch and demand his ​full
money back from the seller
IV. If it is ​impossible​ for us to ​distinguish​ the price of the valid commodity vs the invalid one in the sale,
then the ​whole​ transaction becomes ​invalid
A. Ex: a seller sells his own land and his brother’s land ​without​ his permission for a certain amount
but we ​cannot​ distinguish the ​value​ of each land to ​separate​ the two commodities

Invalid Contracts

I. Selling​ or ​buying​ something ​without​ ​need​ for ​those​ for whom ​Jumu’ah​ prayer is obligatory ​after​ the
second​ ​adhaan​ of ​Jumu’ah
A. If there is a ​need​, then it is ​allowed
1. Ex: a person is very hungry and needs to buy food, a person needs to buy clothes to
cover himself properly for ​Jumu’ah​, etc.

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 B. However, ​other​ types of contracts are ​valid
1. Ex: hiring, collateral, loan, marriage, etc.
II. To sell juice or grapes for the purpose of making wine with them or to sell weapons in times of ​internal
turmoil​ (​fitnah​)
A. In other words, we are ​not​ allowed to sell something ​permissible​ that we ​know​ will be used to
do something ​impermissible​ with it
1. Because it is not allowed to assist in sin
B. Times of internal turmoil here is referring to when two Muslim groups are fighting each other
1. It is ​not​ allowed to assist one against the other by selling weapons to them
C. If you ​know​ the buyer will use such items in a ​permissible​ way, then it is ​allowed
III. To sell a Muslim slave to a disbeliever ​unless​ with the ​possibility​ of freeing the Muslim slave through
it
A. A disbeliever should ​not​ have authority over a Muslim
B. The ​exception​ here is referring to those disbelievers whose ​immediate​ ​relatives​ ​(​mahram​)
are Muslim slaves. In such a case, when a disbeliever purchases his immediate relative, who is
a Muslim slave, the latter becomes automatically ​free
1. Ex: a disbeliever purchases his father, mother, brother, sister, son, or daughter who is a
slave but has converted to Islam. Once he purchases him/her, the family member
becomes free
IV. It is ​invalid​ and ​impermissible​ to ​sell​ or ​buy​ an item ​over​ your brother ​after​ the deal is already
finalized but ​before​ the end of the session
A. Following ​two​ conditions ​must​ be present for the sale/contract to become ​impermissible ​and
invalid
1. It happens ​before​ the session is over
a) Referring to ​Khiyar al-Majlis​: it refers to the time period in which there is an
option for both contracting parties either to revoke or to continue with the contract
before departing from the contracting session
(1) This session’s end could be when both or one of them leaves the location,
the phone is hung up, the buyer leaves the store, etc.
2. There was ​no​ ​condition​ put in place to allow it
a) Referring to ​Khiyar al-Shart​: it refers to an option in a sale contract concluded at
the time of signing the agreement, giving one of the two parties to the contract a
right to cancel the sale within a stipulated time
B. Example of selling over your brother
1. A buyer and seller have finalized a deal and then a third party comes in during the
session and offers the same product to the ​buyer​ at a ​cheaper​ price
C. Example of buying over your brother
1. A buyer and seller have finalized a deal and then a third party comes in during the
session and offers the ​seller​ to buy the same product at a ​higher​ price
V. It is ​valid​ but ​impermissible​ to haggle over your brother
A. The contract itself is ​valid​ but it is ​impermissible​ to do this
1. So this is ​different​ than the case before where it was both ​impermissible​ and
invalidated​ the contract
B. This is referring to ​after​ the seller ​explicitly​ agrees ​verbally​ to sell the product at the
negotiated price
1. Ex: a buyer and seller are bargaining over the price of a commodity and the seller
explicitly agrees by ​verbal​ consent to sell it at a specific price, then a third person
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 interjects​ and offers a price which the seller accepts. The contract itself is ​valid​ but it is
impermissible​ to do this
2. Auctions are ​permitted​ because they occur ​before​ there is an agreement on a
negotiated price between two parties
VI. The above rules related to not buying, selling, or haggling over your brother are in place to keep
harmony and love between Muslims

Conditions Placed in the Contract

I. This chapter deals with conditions that the two contracting parties put on each other in order to move
forward with the sale
II. There are two types of conditions that can be placed ​in the contract​:
A. Valid conditions
1. The conditions could be the type that benefit the ​contract
a) Ex: adding collateral or a guarantor for delayed payment
b) For this type, you ​can​ have multiple conditions
2. The condition could be the type that contains a ​known​ ​benefit​ in the sale for ​either​ of
the two contracting parties
a) Could be from the ​seller’s​ side
(1) Ex: I will sell you this house provided I live in it for a month after which I
will hand it over to you for good
b) Could be from the ​buyer’s​ side
(1) Ex: I will buy this firewood from you provided you cut it for me
c) If the conditional benefit in the sale is ​unknown​, then the condition is ​invalid
(1) The ​exact​ benefit must be ​known​ so that the parties are clear on the
terms and there are no surprises, otherwise, it leads to conflict
d) However, you ​cannot​ add ​multiple​ conditions in the contract for this type. If you
do, it will ​invalidate​ the contract
(1) Scholars differ over if this is allowed or not but the official position of the
Hanbali school is that you can ​only​ add ​one​ such type of condition
(a) Because when you open this door, it leads to more arguments,
disagreements, and conflicts
B. Invalid conditions
1. Two types
a) First Type: Invalidates the ​whole​ contract
(1) Type where you do a contract with the condition of doing ​another
contract​ along with it
(a) This other contract could be related to a loan, rent, or sale
(i) Example, “I will sell you this car with the condition that I
also borrow from you $100k”, “I will sell you this house with
the condition you let me rent it out to others”, “I will sell you
this commodity with the condition that you sell me such
and such commodity in return”, etc.
(2) Type that ​suspends​ the sale ​until​ a particular condition is met sometime
in the ​future

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 (a) Ex: “I will sell you this commodity if Fatima comes to the store”, “I
will sell you this commodity if Zayd comes to my house”, “I will sell
you this commodity if so and so brings a bag of food”, etc.
(b) Exceptions by Hanbalis for this type. Meaning they allow the
following:
(i) You make the condition “if Allah Wills”
(a) Ex: “I will sell you this commodity if Allah Wills”
(ii) Giving a down payment and then promising the rest to pay
later
(a) Ex: “I will purchase this commodity from you and
pay an x amount of its price now and the rest in the
future when I get my paycheck.”
b) Second Type: Does ​not​ invalidate the whole contract but ​only​ the invalid
condition
(1) Putting a type of condition where you will ​not​ be ​subject​ to any sort of
loss
(a) This is not allowed because once you take ownership of a
commodity, then the responsibility of its profit/loss is on ​you​ not
another
(b) Ex: “I will buy this commodity from you with the condition that if I
resell it for a loss, then you will pay me the difference.”
(c) Also includes things like putting a condition that if you are unable
to sell the product or when its demand in the market dies, then you
will return it
(2) Seller puts in a condition that he will not be liable for any ​unknown
problem(s)​ that may arise with the commodity
(a) Ex: “I will sell you this car with the condition that if any problems
arise, then I am not responsible.”
(b) However, if the seller ​points​ ​out​ the problem(s) to the buyer
beforehand​ and the latter still chooses to move forward with the
sale, then the seller is ​not​ responsible
(i) Ex: “I will sell you this car with the condition that I am not
responsible for such and such problems that the car
already has within it.”

Al-Khiyaar (Options)
I. Means choosing the ​best​ option between ​execution​ or ​cancellation​ of a contract
A. It is a ​right​ of ​both​ the seller and the buyer to either ​continue​ with the contract or to ​cancel​ it
within certain conditions
II. There are ​seven​ types of options:
A. Khiyaar al-Majlis​ (Option due to assembly)
1. The time period when both parties have an ​option​ (to continue or cancel the contract) as
long as their ​bodies​ have not yet ​separated​ according to ​custom
a) Meaning if the two parties have ​finalized​ the deal but have not yet ​physically
separated, then one of them still has the ​right​ to cancel the deal if he wishes.

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 Once they are physically separated, according to ​custom​, the contract is
binding​ and ​cannot​ be cancelled
b) According to custom means whatever is ​culturally​ ​accepted​ as the end of
khiyaar al-majlis ​in the marketplace of their region
(1) Ex: a deal in a room may be seen to end ​khiyaar al-majlis​ once one of
them leaves the room, a deal on the street may be seen as an end to this
option once one of them walks far away, a deal on the phone may be
seen as an end to this option once one of them hangs up, etc.
c) Exceptions:
(1) Both agree to ​drop​ ​khiyaar al-majlis​ ​before​ finalizing
(a) Meaning they both agree before the deal that there will be no such
option on the table and whatever is agreed upon between the two
parties is final and immediately binding
(2) Both agree to ​drop​ ​khiyaar al-majlis​ ​after​ finalizing
(a) Meaning they both agree after the deal that there will be no such
option on the table and whatever has been agreed upon between
the two parties is final and immediately binding
2. By default, it applies to ​all​ ​contracts​ except in the case where an ​agent​ purchases
something from his sponsor. In this case, there is no ​khiyaar al-majlis
a) Because the agent is already assumed to know the property well enough to make
a decision on it
(1) The whole point of ​khiyar al-majlis​ is to allow parties to pull out in case
they feel uncomfortable with the deal, because generally people are
uncertain if a deal will be of benefit or not
B. Khiyaar al-Shart​ (Option due to a condition)
1. It is when either ​both​ of the contracting parties or ​one​ of them ​requires​ a ​specified
period​ of time to either ​continue​ or ​cancel​ the contract as a ​condition
a) Ex: I will buy this car from you with the condition that I am free to return it within
30 days for a full refund, I will sell you this product with the condition that I can
retrieve it back from you within 15 days with a full refund, etc.
b) Both​ must agree to it
c) There must be a ​specific​ ​time​ mentioned in the condition for it to be valid
(1) Ex: This would be ​invalid​: “I will buy this with the condition that I can
return it whenever I want”
d) If they ​both​ require ​khiyaar al-shart​, then there will be ​restrictions​ placed on the
commodity​ from the side of the ​buyer​ and on the ​money​ from the side of the
seller
(1) Ex: if a seller and buyer both agree on a goat with the condition that both
sides have an option to cancel the sale for a refund within three days,
then the buyer cannot sell or consume the goat for that amount of time
and the seller cannot spend the money earned from it for that amount of
time. This is because there is a possibility of the sale contract becoming
annulled from either side
2. It is ​prohibited​ to ​trick​ the other party with this method
a) There should be a ​clear​ conscious and ​real​ ​intention​ to buy and sell from both
sides
b) It ​invalidates​ the sale if ​both​ had bad intentions
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 (1) If only ​one​ of them had a bad intention, then it will go in ​favor​ of the one
who had a ​good​ ​intention​ as long as he ​agrees
(a) Ex: a seller needs to borrow some cash for a few days so he sells
an item with the condition that he can retrieve it within 10 days if
he wants. Then after 8 days, he requests his item back for a
refund. So he did not have a real intention to sell the product but
just wanted access to some quick temporary cash. If discovered,
the sale will favor the buyer, thus, the buyer has an option to either
keep the product or return it for a full refund
3. The ​ownership​ of the property ​transfers​ to the ​buyer​ whether the condition is set by
both or one of them
a) Meaning technically the buyer ​owns​ the product in ​either​ ​case
(1) However, some ​restrictions​ will be ​required​ if there is ​khiyaar al-shart
on the side of the ​seller​, thus, preventing the buyer from consuming the
commodity or selling it off to another
(a) Ex: if the condition is that ​both​ have 30 days to reconsider, then
the buyer ​cannot​ sell the property to another for 30 days. If the
buyer did so, the sale will be considered ​invalid
(b) Except in ​two​ ​cases​ the buyer can do ​whatever​ he pleases with
the item even if the specific time period has not yet ended:
(i) He unconditionally sets a slave free
(ii) The ​khiyaar al-shart​ was ​only​ set by him
(a) Ex: the buyer ​alone​ has time to reconsider and not
the seller
C. Khiyaar​ ​al-Ghabn​ (Option due to injustice)
1. When the seller ​overcharges​ for a commodity ​far​ ​higher​ than its ​usual​ value
a) The buyer in this case has an ​option​ to either ​keep​ ​it​ with the overcharged price
or ​return​ it for a full refund ​if he did not know​ that he was being overcharged
(1) Ex: seller raises the price in an auction by having someone keep bidding
in order to raise the price, seller takes advantage of someone outside of
town who does not know the market price, etc.
b) If the buyer ​knew​ that he was being overcharged, then he does ​not​ have the
right to return it
2. There is ​no​ ​right​ for the one who is ​rushing​ to buy
a) Meaning if the buyer could have figured it out, if he wanted, that he was being
overcharged had he done the research or asked the right questions but was just
hasty to buy the item at whatever price, then in this case he does not have the
right to return it
3. After finding out, he is ​not​ required to request a refund immediately
D. Khiyaar​ ​al-Tadlees​ (Option due to deception)
1. When a seller ​raises​ the price of a commodity by ​deceiving​ the buyer in some way
a) Ex: he makes a milking animal seem like it gives more milk than it really does by
not milking it for a few days, he hides some of the defects of a product by making
it seem that it does not have those defects, etc.
2. In this case, the buyer has an ​option​ to either keep it or return it for a full refund
a) After finding out, he is not required to request a refund immediately

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 (1) Exception​: if he bought a ​milking​ ​animal​ thinking it produced milk but
then found out that it does not, he has ​three​ ​days​ after finding out to
return it
3. If there is ​evidence​ to suggest that the buyer is ​pleased​ with the commodity despite its
flaws, then he does ​not​ have the option to return it
E. Khiyaar al-’Ayb​ (Option due to a defect)
1. When a commodity has a defect that ​decreases​ the ​value​ of it
a) Ex: an animal that is sick, missing a part, containing extra parts, etc.
2. If the buyer comes to know of it after purchase, then he has an ​option​ to either return it
for a full refund or keep it by ​requesting part of the money back ​based on its ​actual
value called ​arsh​ (‫)أرش‬
a) Ex: Let’s say a car with a good engine is worth $10,000 and one with a bad
engine is worth $5,000. If a buyer buys a car thinking the engine is good for
$10,000 but later finds out after taking it home that the engine is actually bad,
then he has the option to either return it for a full refund or keep it but request the
seller to return $5,000 to him because that’s the actual worth of the car
b) If the defect does ​not​ decrease the value, then the buyer does ​not​ have the right
to return it
c) After finding out, he is ​not​ required to request a refund immediately
d) How to find value of it and determine the ‫أرش‬
(1) Find the market value of the item without the defect
(2) Ask the market how much the value of it is if it had the defect
(3) Subtract what you paid for it by what it’s actually worth
3. If the ​buyer​ ​damages​ or ​defects​ the commodity in some way (​after​ discovering the
original defect), then he has ​two​ options:
a) Keep it but ​request​ part of the money back based on its ​actual​ ​value​ with the
defect
b) Return it for a refund but ​must​ pay the seller for the damage/defect that he
caused
4. If there is a dispute between the two as to who caused the defect, then the ​buyer​ is
given preference with an ​oath
F. Khiyaar al-Takhbeer Saman​ (Option due to seller’s dishonesty about the principal price)
1. When the seller tells the buyer how much he ​himself​ has paid for the item but is
dishonest​ about it
a) Ex: seller and buyer are negotiating, then the seller tells the buyer, “I paid for this
item $10 and I will sell it to you for that much as well and no less,'' the buyer
accepts but finds out later on that the seller actually paid only $8 for it
2. There are ​five​ ​forms​ of this:
a) The seller told a price ​higher​ than he actually bought it for
(1) Ex: the seller says that he bought an item for $10 and sells it for that
amount, but then the buyer later finds out that the seller actually bought it
for just $8, thus, he was deceived
(2) There is ​no​ ​option​ to return it in this case but the buyer has the option to
request​ the ​extra​ money back
(a) So in the previous example, the buyer can request $2 back
b) The seller bought the item on credit but hides this fact from the buyer

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 (1) Ex: I will sell you this item for $200 and that is exactly how much it cost
me
(a) However, he is hiding the fact that he bought it on $200 credit and
is paying it off in installments
(2) In this case, the buyer has ​no​ ​option​ for returning it but he has the right
to tell the seller to get it from him on credit the ​same​ ​way
c) Seller bought it from a person whose attestation is not accepted in this context
(1) Meaning the seller tells the buyer that the item cost him such and such
price but is ​hiding​ the fact that the person who sold it to him is a ​close
family​ ​member​ (father, son, wife, etc.)
(a) Close family members’ attestation is not accepted in this context
because there is a ​bias​ in place. It is possible that the family
member sold it for a high price so that the seller can also sell it for
a high price by saying that that is how much it cost him
(b) In general, the seller is ​not​ required to tell the buyer from whom
he bought the item, whether he bought it on credit or not, how
much he paid for it, etc., however, if he does ​choose​ to ​reveal
such information, then he ​must​ be ​honest​ about it so that the
buyer can make an ​informed​ decision
(i) The focus here is to ​assure​ that the deal is ​fair​ and that
the buyer is not deceived in some way
(2) In this case, the buyer has the ​option​ to either keep it or return it for a
refund
d) Much​ of the price is a ​deception
(1) Ex: Muhammad owes Zayd $900 but cannot pay it off, so Muhammad
instead offers Zayd his car, which is worth only $450, as a way to relieve
himself from the debt. Zayd accepts the car, which is worth $450, and
then sells it off to someone for $900 by telling the buyer that that is how
much he himself paid for it
(a) This is a form of deception
(2) In this case, the buyer has the ​option​ to either keep it or return it for a
refund
e) Seller purchases ​multiple​ ​quantities​ of an item in ​one​ ​deal​ and sells each
based on his ​own​ ​estimation​ of the principal price but ​passes​ it off as the
actual​ principal price
(1) Ex: a seller purchases two different cars for $100,000 and sells them for
$50,000 each by saying that that is how much he paid for each
(a) But this is ​false​ because he bought both ​together​ as one deal.
Splitting them evenly is his ​own​ ​estimation​ and not the actual
value of each on its own
(2) In this case, the buyer has the ​option​ to either keep it or return it for a
refund
(a) Because the seller was dishonest about it
G. Khiyaar li ikhtilaaf al-mutabaay’ayn​ (Option due to difference between the contracting parties)
1. If there is a difference over the ​price ​or ​rent ​and there is ​no evidence ​in either party’s
favor or they ​both ​have ​contradictory ​evidence against each other, then the following
steps should be taken:
12
 a) Seller​ takes an ​oath​: he should say “By Allah, I did not sell it for such and such
but I sold it for such and such”
(1) He does it first because he is the one that will lose the deal
b) Buyer​ takes an ​oath​: he should say “By Allah, I did not purchase it for such and
such but I bought it for such and such”
c) If ​both​ are still ​dissatisfied​ despite the other’s oath and then ​one​ of them ​wants
to void the contract, then the sale will be ​cancelled
(1) The buyer receives his refund and the seller his commodity
d) If the goods were ​damaged​ by the buyer ​before​ the payment and then there is a
dispute about the price:
(1) They will both take an oath as discussed above
(2) The ​buyer​ is ​responsible​ for its price with its ​current​ ​value
(a) The price will be based on the value of the commodity with the
damage in the market
(b) Ex: Buyer buys something with a promise to pay for it later. The
buyer returns sometime later to pay the seller but there is a
dispute as to how much was agreed upon and there is no
evidence for either side. They both take an oath as mentioned
above and then one of them wants to cancel the deal. However, it
is discovered that the buyer damaged the product. In this case, we
will ask the market for the value of the damaged commodity and
that will determined to be the price of the product
(i) If the sale is to be cancelled and the product returned, then
the buyer must compensate for the damage
2. If there is a difference over the ​duration of the contract​ or a ​condition of the contract
and there is no evidence for either side, the decision will ​favor​ the one who ​negates​:
a) Duration​ ​ex​: Buyer claims it was 6 months, the seller claims it was 10 months.
The buyer is favored in this case because the one who ​negates​ the ​longer​ ​time
is given preference
b) Condition​ ​ex​: Buyer claims x was part of the contract as a condition, the seller
claims it was not. The seller is favored because he ​negates​ the condition
(1) The ​asl​ is the absence of the condition
3. If there is a difference over the ​particular commodity ​or its ​quantity​, then the ​seller​ is
given ​preference
a) Because the one who ​acquires​ the commodity is the one that needs to ​prove
that he deserves a particular commodity over another or a particular quantity
from the seller
(1) Ex: seller says he sold the buyer a Honda Civic but the buyer insists that
the seller sold him Ford Focus. The seller’s claim will be given preference;
a seller says that he sold 10 quantities of a commodity to the buyer but
the latter claims that he was sold 20 quantities. The seller’s claim will be
given preference
III. If the buyer is delivered a commodity that is ​different ​in description he was told about or it has
changed ​since he last saw it at the store, then he has the ​option​ to either accept the sale or cancel it
for a refund

13
Measurement Contracts
I. This chapter deals with rules related to commodities sold in ​measurements
A. It is particularly speaking about the following types of measurements:
1. Things sold based on ​weight
2. Things sold based on ​number​ per piece
3. Things sold based on ​specific measurements ​like metrics or meters
a) Ex: fabric
II. Whoever purchases something in measurement:
A. The contract for it is ​valid ​and the ​ownership ​transfers to the ​buyer
B. However, the buyer ​cannot ​do whatever he likes ​before ​possession of it
1. Ex: he cannot sell it, rent it, or do anything else with it until he has ​received​ all of it in his
possession
2. If he does something before possession, then it would be invalid
III. How to take possession of such items:
A. It should be weighed/measured/counted in the ​presence​ of the buyer or his representative
before possession
1. If the buyer wants to take it with him in his own container, then that should be present as
well
a) Once the buyer or his representative see it weighed/measured/counted and put
into the ​container​, it is considered possessed
b) Buyer can also use his ​hand​ as a container if it is possible for him to do so
2. This is to assure that it is measured/weighed/counted properly and is complete so that
there is no dispute
B. If it’s a large pile(s) of food or an animal(s), then such things will be considered ​possessed
once they are ​transported​ to the buyer’s location
C. If the commodity consists of ​small​ ​items​, then they will be considered ​possessed​ once they
are ​handed​ ​over​ to the buyer in his ​hand
1. Ex: jewelry
D. If the commodity is a type of item that ​cannot​ be moved, then it is considered ​possessed​ once
the seller ​evacuates​ it after finalizing the contract
1. Ex: land, house, etc.
IV. What if ​one​ of them wants to ​cancel​ the contract ​after​ it becomes binding?
A. This is ​allowed​ if the other party agrees
1. This is known as ‫إﻗﺎﻟﺔ‬
2. It is ​sunnah​ to ​accept​ the request for cancellation
3. Hukm​ ​wadi’​ (declaratory law) in this case is that it will cancel it once the other party
agrees
V. Terms to know
A. Ibtaal​ (‫ )إﺑﻄﺎل‬- Invalid
1. Means contract was invalid to begin with
B. Faskhun​ (‫ )ﻓﺴﺦ‬- Cancel
1. Contract is valid but a request was made by one of the parties to cancel it and it was
accepted
C. ‘Aqdun​ (‫)ﻋﻘﺪ‬

14
 1. Contract is valid and currently binding

Interest (Ribaa)
I. Definition
A. Ribaa​ means an increase in a particular item. The word is derived from a root meaning increase
or growth
1. It is prohibited according to the Qur’an, Sunnah, and consensus of the scholars
2. It is one of the seven major destructive sins
3. It does ​not​ refer to ​any​ and ​every​ type of growth in a sale but ​only​ particular types of
growth
a) Typically occurs in items sold in ​measurements​ or ​weights
(1) This means ​any​ exchange transaction that is ​not​ done based on
measurement/weight ​cannot​ be usurious
(2) Ex: gold, silver, salt, dates, barley, wheat, copper, meat, iron, etc.
(a) Because all such items are either typically sold in measurement
(dates, barley, wheat) or weight (gold, silver, iron, copper, meat)
II. There are ​two​ types of interest (​ribaa​) that are ​prohibited​ in Islam: ​Surplus​ and ​deferred payment
A. Surplus (​fadhl​)
1. Def: When you ​exchange​ the ​same​ ​type​ of goods based on measurement/weight but
with a ​surplus​ and the exchange is done ​immediately
a) Even if the measurement/weight is ​small​ and insignificant in ​size​, it is not
allowed
b) Same type examples: gold for gold, silver for silver, dates for dates, etc.
(1) Ex: you sell 10 grams of gold for 15 grams of gold to be exchanged
immediately, you sell a ​saa’​ of dates for a ​mudd​ of dates to be exchanged
immediately, etc.
(a) Saa’​ is a full two handfuls of something and ​mudd​ is four full two
handfuls of something
2. Conditions​ for it to be considered the prohibited ​ribaa​ ​al-fadhl​:
a) Both exchanges are of ​same​ ​type
(1) So if the exchange is for ​different​ ​types​, for example, selling gold for
silver, then it would be ​permissible​ if there is a surplus because they are
of different types
b) One receives a ​surplus​ in return
(1) So if the exchange is in ​equal​ amount of measurement/weight for the
same​ ​type​, then it would be ​permissible
c) Exchange happens ​immediately
(1) Meaning the buyer and seller both take ​possession​ of their commodities
immediately
(2) If the exchange does ​not​ take place immediately, then it would be the
second type of ​ribaa​ discussed below
3. Based on the above, the exchange is ​valid​ and you can ​avoid​ ​ribaa al-fadhl ​if:
a) The commodities are ​equal​ in measurement/weight when of ​same​ ​type
(1) Ex: 20 grams of gold for 20 grams of gold, a ​saa’​ of dates for a ​saa’ ​of
dates, etc.

15
 (2) If they are of ​different​ ​types​, then they are ​not​ required to be equal
(a) Ex: 20 grams of gold for 30 grams of silver, a ​saa’ ​of dates for a
mudd​ of barley, etc.
b) The exchange ​must​ happen ​before​ they separate ​regardless​ of whether the
commodities being exchanged are of the same type or not
(1) Meaning the buyer and seller both take possession of their commodities
immediately
(2) Exception​: it is ​permissible​ to ​delay​ the payment if someone wishes to
purchase a weighed/measured commodity (other than gold/silver) ​with
gold/silver/cash
(a) Ex: someone purchases iron in weight and wishes to pay for it in
gold/silver/cash after a month
(b) Cash is considered a type of gold/silver
4. It is ​neither​ ​permitted​ ​nor​ ​valid​ to exchange commodities of ​same​ ​type ​calculated
originally​ in measurements through weights and vice versa
a) Weights and measurements are considered ​separate​ types of calculations
b) Ex 1: selling a ​saa’​ of dates for a ​kilo​ of dates
(1) Saa’​ is a measurement and kilo is a weight. Dates are ​originally
calculated in measurements and not weights
(2) Because there is a ​possibility​ that they may ​not​ be equal in
measurement
c) Ex 2: selling 2 ​grams​ of silver for 2 ​saa’​ of silver
(1) Grams is a weight and ​saa’​ is a measurement. Silver is ​originally
calculated in weights and not measurements
(2) Because there is a ​possibility​ that they may ​not​ be equal in weight
d) Exception​: if it is ​known​ that they both are ​equal​ in their ​original​ ​standard
calculation
(1) Ex: if someone sells a ​saa’​ of dates for a ​kilo​ of dates and the latter was
measured​ to ​assure​ that it was also a ​saa’​ because dates are ​originally
calculated through measurement
B. Deferred payment (​nasee’ah​)
1. Relates to ​delay​ in ​timing
a) Meaning the ​possession​ of goods is ​delayed​ and is not done immediately
2. Def: When you ​exchange​ goods based on weights/measures but it is ​delayed
a) Ex: you sell 10 grams of gold for 10 grams of gold to be paid after a month
(1) Notice that even if there is ​no​ ​surplus​ between the same types, it would
still​ be considered ​ribaa al-nasee’ah
b) Even​ if the goods are of ​different​ ​types​ but calculated under the ​same
category​, it would ​still​ be considered ​ribaa al-nasee’ah
(1) Ex: you sell 10 grams of ​gold​ for 15 grams of ​silver​ to be paid after a
month
(a) Gold and silver both belong under the ​same​ ​category​ of ​weights
c) Exception​: it is ​valid​ to ​delay​ the payment if someone wishes to purchase a
weighed/measured commodity (other than gold/silver/cash) ​with​ gold/silver/cash
(1) Ex: someone purchases meat in weight and wishes to pay for it in
gold/silver/cash after a month
3. The following are ​valid​:
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 a) To exchange a commodity sold in ​measurement​ for a commodity sold in ​weight
and vice versa
(1) Ex: to sell 5 ​mudd​ of dates for 3 grams of gold
(a) Mudd​ is a measurement and gold is a weight
(2) In this case, it is ​allowed​ to be exchanged ​either​ immediately or through
a delay
(a) It also is ​not​ required to be equal
(b) The same goes for exchanging something measured/weighed for
anything​ else that is ​not​ sold in measurements/weights
(i) Ex: selling a ​saa’​ of dates for a t-shirt
b) To exchange gold for silver and vice versa is valid ​but​:
(1) If the two parties separate ​before​ complete possession takes place, then
whatever was ​not​ exchanged becomes ​invalid
(a) Ex: a seller exchanges 10 grams of gold for 20 grams of silver.
The seller receives the 20 grams of silver but only pays 5 grams of
gold and says that he will give the rest next month
(i) This will ​invalidate​ the 5 grams that he owes because the
exchange must happen immediately
III. To sum up the rules:
A. We first look to see if the two exchanges are of ​usurious​ ​types
1. Meaning we find out if it is something sold based on measurement/weight
B. If both are of the ​same​ ​category​, then it is ​required​ that they be exchanged ​immediately
1. Ex: weights for weights (gold for silver) or measurements for measurements (dates for
barley)
2. Exception​: to purchase a weighed/measured commodity (other than gold/silver/cash)
with gold/silver/cash
a) In such a case, it is allowed to be delayed
C. If both are of the ​same​ ​category​ and ​type​, then it is ​required​ that they be exchanged
immediately​ and be ​equal​ in amount
1. Ex: gold for gold, dates for dates, etc.
D. If both are from ​different​ ​categories​, then it is ​not​ ​required​ that they be exchanged
immediately ​nor​ that they be equal in amount
1. Ex: weights for measurements (copper for dates), non-usurious types of exchanges
(t-shirts for shoes), weights/measurements for non-usurious types (copper/dates for
clothes)

Sale of Assets and Fruits

I. This chapter specifically deals with rulings related to the sale of the following types of assets: homes,
land, trees, slaves, fruits, and plantations
II. When a ​house​ is ​sold​, the following will ​automatically​ be considered part of the deal:
A. The ​land​ on which it is built
B. The ​building​ itself
C. Roof, connected door(s), staircase, nailed shelves, any hidden warehouse or depository, etc.
1. Basically anything that is ​fixed​ or ​connected​ to the house is automatically ​included​ in
the sale of the house without it even being mentioned explicitly in the contract

17
 2. Exclusions​: lock(s), key(s), bucket(s), roller(s), etc.
a) Basically anything that is ​not​ fixed ​nor​ connected to the house and is ​movable​.
Such things are ​not​ automatically included in the sale of the house
(1) Such things either require a separate ​new​ ​contract​ or must be
mentioned explicitly in the original contract in ​addition​ to the house
b) Rollers were a way to bring buckets of water from the well in the old days
III. When a ​land​ is ​sold​, the following are ​automatically​ considered ​part​ of the deal:
A. Any ​trees​ planted on it
1. Following are ​excluded​:
a) Plants that grow only ​once​ and then are ​cut​ and their implanted ​seeds
(1) Such plants usually do not have any trunks
(2) However, if the ​buyer​ puts in a ​condition​ that he will ​also​ own all such
buried seeds and plants, then it will be considered part of the deal as well
(a) It is ​valid​ even if the buyer does not know how many such seeds
and plants are in the land
(i) Meaning he can just make a general statement in the
contract, “I buy this land from you and whatever is planted
in it and its seeds”
B. Any ​buildings​ built on it
C. Rulings related to whatever is ​cut​ and ​picked​ ​repeatedly​ from the plants:
1. Ex: clover, fruit, etc.
2. They all ​automatically​ belong to the ​buyer​ and are ​part​ of the deal with the land
purchase
a) However, if at the time of the deal there is something ​ready​ to be ​picked​, then it
belongs to the ​seller​ by default unless the ​buyer​ puts in the ​condition​ that those
too​ belong to him
IV. Whoever ​sells​ a ​date palm tree ​that is ready for ​pollination​ and its fruits are either ​ready​ or ​almost
ready​, then its fruits belong to the ​seller​, thus, are ​not​ automatically considered part of the contract
A. If the fruits have ​not​ yet come out, then its ​future​ fruits automatically belong to the buyer
B. But if the buyer makes it a condition, then it all belongs to him
1. Buyer can either make a separate contract for each tree or one for all trees
C. The ​same​ ​rule​ applies to ​all trees ​whose​ ​fruits are apparent and can be seen
1. The following cases also fall under this rule:
a) Plants that start off as flowers and then ​transform​ into fruit. If the fruits begin to
appear from the flowers, they belong to the ​seller​ unless the ​buyer​ puts it
explicitly​ in the contract
(1) Ex: apricot
b) Plants that start off ​folded​ and then open up: If the plant has begun to be
unfolded​ and the fruit in it begins to appear, then it belongs to the ​seller​ unless
the ​buyer​ puts it ​explicitly​ in the contract
(1) Ex: cotton
2. General rule here is that any fruit that appears ​after​ purchase of a tree(s) belongs to the
buyer​ by default, however, fruits that have ​begun​ to ​appear​, even if not completely,
before​ the purchase are considered ​separate​, hence, they belong to the ​seller​ by
default unless the ​buyer​ makes it part of the ​condition​ in the contract that it also
belongs to him

18
 a) Similarly, if a tree is sold in the ​early​ ​stages​ when its fruits have ​not​ yet begun to
appear, then they will belong to the ​buyer​ by default
b) Leaves ​always​ belong to the ​buyer​ because they are ​part​ of the trees
(1) Even if the leaves can be made of use separately
V. It is ​not​ valid to sell ​fruit on trees ​by themselves ​until​ they are ​ready​ for ​consumption​. Similarly, it is
not​ valid to sell ​grains​ until they are ready for harvest (rice, corn, etc.)
A. This is in order to keep harmony in the community, because it is not guaranteed that the
fruit/grain will not go bad or become ruined before they are ready
B. Exceptions​:
1. Selling the fruit(s) to the ​owner​ of the ​tree​ or the grain(s) to the ​owner​ of the ​land
a) In this case even if the fruits/grains are not yet ready, it is ​valid
b) Ex: a farmer has a farm on a land that he is renting from someone else. In this
case, the farmer can sell the grains before they harvest to the owner of the land
2. Selling with the condition to cut it ​immediately​ to be used for some benefit
a) Ex: selling it to someone to use as fodder for his animals
b) This is provided that the owner of the fruits is ​not​ a partial owner
(1) Meaning he must ​not​ share the ownership of the fruit with a business
partner
VI. It is ​not​ valid to sell ​green​ ​vegetables​ (lettuce, clover, parsley, mint, okra, etc.) and ​cucumbers​ except
piece by piece ​or with its ​root
A. Meaning when it comes to such plants, we can ​only​ sell what has ​grown​ and is ​apparent​ in
front of us
1. Ex: you can only sell ​pieces​ of cucumbers/lettuce/mint/etc. that you ​see​ grown on the
plant and ​not​ those that will appear in the ​future
2. Such types of plants are ​constantly​ cut and then ​regenerate
3. Whatever has ​not​ yet grown ​cannot​ be sold because it is categorized as ​unknown
4. Selling it with its ​root​ means selling the source (​whole​ ​tree​ or the ​plantation​) so that
whatever grows in the ​future​ will belong to the ​buyer
B. Once a buyer ​agrees​ to purchase what is grown and apparent, he must ​cut​ and ​pick​ it ​quickly
and if he does not, then it will ​invalidate​ the contract if it ​grows​ unless the growth is a very
insignificant​ amount
1. This is because such plants (lettuce, clover, parsley, mint, okra, etc.) grow ​very​ ​quickly
and the new growth, which ​belongs​ to the ​seller​ and is ​not​ part of the ​deal​, will ​mix
with the buyer’s, thereby, making it ​difficult​ to ​distinguish​ between the two
2. There is an ​exception​ for ​wood​ which ​also​ regenerates on a tree
a) In this case, it is allowed to delay its cut because it grows ​slowly​ and is easy to
distinguish by measuring
(1) Therefore, both the seller and buyer have their shares in it even if it grows
after the deal because they can distinguish the difference
VII. It is the ​responsibility​ of the ​buyer​ to cut, gather, and pick it up after the deal
A. Unless​ he puts it in the ​contract​ for the seller to do it
VIII. It is the ​responsibility​ of the ​seller​ to water it after the deal
A. Because the ​seller​ is still the ​owner​ of the tree growing the sold vegetables
IX. Whatever fruit/vegetables are ​ruined​ by a heavenly ​calamity​ (storm, flood, etc.), then it is the
responsibility of the ​seller
A. A little bit of damage is ​tolerated

19
 B. Ex: a buyer purchases some fruit from a farmer but has not yet come to pick them up. There is a
storm which damages the trees with the sold vegetables. In this case, the farmer is responsible
because he is the owner of the source of the fruit
C. Exceptions​:
1. The seller ​sold​ the ​tree​ with the fruit as well. In this case, it is the ​buyer’s​ responsibility
if a heavenly calamity occurs
a) Because the buyer is now the ​owner​ of the ​source​ of the fruit
2. The buyer ​delays​ in picking up his share from the seller beyond what is ​customarily
done
a) In this case, the buyer will be responsible if a storm damages his fruit because he
is the one who ​delayed​ the delivery ​beyond​ what is ​normally​ done in such
sales
X. It is ​valid​ to sell some types of fruit even if not all of them are ready with the ​condition​ that some of
them are ready, however, they must all be from the ​same​ garden and the ​same​ type of tree and fruit
A. Ex: if there is a garden in which red and green apple trees are planted, then if the farmer sees
that one of the green apple trees is growing the fruit fine, then he can sell the fruit from the rest
of the green apple trees as well even though they have not grown yet based on the successful
growth of one of its trees
1. He ​cannot​ do so for the red apples and their trees in this case unless they produce a
similar result
B. It is ​restricted​ to the ​same​ garden, trees and fruit
1. If any ​one​ of them changes, then it does ​not​ apply
C. Same goes for grains
XI. How to tell if fruits are ready
A. Dates: when they become ​red​ or ​yellow
B. Grapes: when the water in it becomes ​sweet
C. Rest of the fruit: when they appear ​ripe​ and ​good to eat
XII. If you sell an ​animal​, the following are automatically included in it:
A. Bridle
B. Rein
C. Animal’s sole/shoe which are made of iron and placed under its feet
XIII. If you sell a slave, then his/her ​clothes​ that he/she is wearing are ​automatically​ included in it
A. Exception: expensive or special occasion clothes are ​not​ included
1. Special occasion clothes: those worn on Eid or other suitable occasions
2. Meaning only his/her clothes that he/she wears while ​working​ are included

Delayed Delivery (Salam)

I. Def: This is when you pay the money up front and then have the item delivered later
II. There are ​four​ types of sales:
A. The money and the item are exchanged ​immediately
B. The money is ​delayed​ but the item is exchanged ​immediately
1. Meaning you receive the item but pay for it later. It’s a form of debt
C. The money is exchanged ​immediately​ but the item is delivered ​later
1. This is what this section is about
D. Both​ the money and the item are delayed

20
 1. This type is ​not​ permitted because it is selling debt for debt
III. It is valid with ​seven​ conditions. If ​any​ one of them is missing, then such a sale will ​not​ be permitted:
A. It is something that can be described with ​precision
1. Ex: its description, measurement, weight, quantity, etc.
2. If it is a type of item that cannot be described with precision, then it ​cannot​ be sold via
delayed delivery
a) Ex: Jewels and gemstones that cannot be described precisely, they cannot be
sold via delayed delivery
3. In the past when things were manufactured, they would mix different things together
without precision so that it would be difficult to measure precisely what was in it,
however, today they generally manufacture with precision and are able to tell what’s in it
a) So today if we are able to precisely ​describe​ the manufactured item, then we
can sell it with delayed delivery
(1) Ex: something manufactured with equal amounts of different products
B. It must contain the following ​details​ in the ​description​. This is so it does ​not​ later result in
confusion or dispute:
1. Its category and type (if applicable)
a) Category ex: is it a date or barley?
b) Type ex: is it Saudi barley or Emirati barley?
2. Any type of description which may cause its price to differ
a) Ex: dates from Medina vs dates from Syria
3. Whether it is fresh/new or old
C. Its appropriate ​amount​ must be mentioned
1. Meaning its quantity, weight, measurement, etc.
2. It is ​not​ valid to sell something that is sold in measurements to be sold in weights and
vice versa
a) Because it leads to interest (​riba​). This was discussed in detail above under the
section related to interest
b) Similarly, if something is sold in quantities, then it cannot be sold in
weights/measurements
(1) Ex: selling 10 kilos of computers or books. This is ​invalid
D. There must be a mention of ​appointed​ ​time​ of delivery
1. Ex: it will be delivered in 30 days
E. The item should be a type that can be found ​most​ of the time in the season in which it will be
delivered
1. Meaning seller should be able to have access to it, otherwise, how will he deliver it?
2. Ex: fruits from different seasons cannot be promised to be delivered in seasons in which
they are not grown
a) There is an ​exception​ to this nowadays due to technology because you can find
all types of foods the whole year
3. The condition can be ​extended​ to any type of item that may be difficult to deliver at the
appointed time and/or place for whatever reason
4. If the seller is unable to deliver it at all or a part of it, the buyer can either:
a) Be patient and ​wait​ for the rest to be delivered
b) Request a full ​refund​ and ​cancel​ the contract
F. The seller must take ​possession​ of the money ​before​ separation
1. If he does not, then this will be selling debt for debt, which is prohibited
21
 G. The seller delivers the item(s) as an obligation
1. Meaning the item must ​not​ be present in the store. In that case, it cannot be sold via
such a contract
2. It is also ​not​ valid to sell fruit from a ​specific​ tree
a) Ex: a buyer says he wants to purchase fruit from a specific tree once it grows and
that it be delivered to his house
b) This is in order to avoid dispute because it is not guaranteed that a particular tree
will grow the fruit
IV. It is ​obligatory​ for the seller to fulfill the contract by delivering the item(s) to the delivery address
agreed​ upon in the contract
A. Exception​: if there was a condition made that another location may also be used for delivery
B. If no delivery address is mentioned, then it will be delivered to the place where the contract took
place
V. The following are ​invalid​:
A. A buyer cannot ​resell​ the item to someone else ​before​ taking possession of the item that is to
be delivered
1. Because he is trying to sell something that he does not possess which is ​not​ allowed
B. There should be no ​transfer​ of wealth from either party to a third party
1. Meaning no one else should ​interfere​ with the deal
2. Ex: buyer gives money for two pounds of meat to be delivered in three days. The seller
takes the money and says to him, “Go to so and so and get two pounds of meat from
him because he owes me two pounds”. This is not valid
a) The same goes for the buyer
C. The buyer ​cannot​ take a ​pledge​ or ​guarantee​ from the seller
1. Ex: after the buyer gives him the money, he cannot ask for a guarantee or collateral in
case the seller does not deliver
D. Both parties ​cannot​ change the order to something else ​after​ the end of the deal
1. It must be whatever was ​agreed​ to sell
2. Ex: the seller cannot come to the buyer a few days before delivery and request to
change the item

Loans
I. Types of loans
A. When someone ​borrows​ something to ​benefit​ from it and then returns something ​similar​ to it
but ​not​ the very same item
1. Ex: someone borrows a bag of rice and then uses it to feed his family and then buys a
new bag of same size to pay it back to the lender
B. When someone ​borrows​ something to ​benefit​ from it and then returns the very ​same​ item
1. Ex: someone borrows a car to go to the store and then returns it after shopping
II. Anything that is ​valid​ to ​sell​, it is also ​valid​ for it to be ​loaned
A. Meaning in general, ​anything​ that can be sold can also be loaned
B. Exception​: human beings
1. This is in reference to ​slaves​. Even though they can be sold, they cannot be loaned
a) Ex: someone borrows a slave and then returns another one in exchange for it

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 2. This was a concern in the past when slavery was common because it could mean
borrowing slave girls for sex
III. Whatever is ​borrowed​, it is ​obligatory​ to return either the item ​itself​, something ​similar​ to the item, or
its ​value
A. Ex 1: someone borrows a pound of meat, he can either buy another pound of meat to return or
pay the lender its price
B. Ex 2: someone borrows someone’s car, he must return the car itself after use
C. If the ​market​ runs out of ​similar​ type items, then he ​must​ return the ​value​ of it on the day the
market ran out
1. The price ​stabilizes​ for the borrower on the ​day​ the market runs out of similar items
a) Ex: he borrows a ​saa’​ of dates and then on the third day the market runs out of
all types of dates. In this case, he can return the ​value​ of a ​saa’​ of dates on the
day the market ran out
2. If it is a type of item that does ​not​ have something similar at all, then he must return it
based on its value on the day of its ​possession​ (i.e. on the day he borrowed it)
a) Ex: a person borrows someone’s time to do something for them for an hour
IV. It is ​prohibited​ to include a ​condition​ in the loan contract that will give some sort of extra ​benefit​ to
the ​lender
A. This is because it is a form of ​interest​ ​(​riba​)
B. Ex: lender conditions to a borrower in the contract that the latter will return the original item plus
something else in return
C. If the borrower fulfills the contract with something better on his ​own​ in return, gives a gift or
something extra, etc. ​without​ it being agreed upon between them during the contract, then it is
not​ a problem
1. However, this must be done only ​after​ the loan has been ​returned

Collateral
I. Collateral: consolidation of debt through ​pledging​ something ​specific
A. That specific thing can be ​anything​ that has ​value​. It is ​sold​ to settle the debt
B. Ex: something pledged as security for repayment of a loan. “I pledge my car as a security that I
will pay for this $5,000 item in 5 months”
C. The borrower is ​still​ considered the actual ​owner​ of the collateral and not the lender
II. In general, ​anything​ that is ​allowed​ to be ​sold​ is also ​permitted​ to be used as collateral
A. Exception: the ​mushaf
B. Fruits​ and ​plants​ that are ​not​ yet ready for harvest can ​also​ be used as collateral
1. Even​ ​though​ they are ​not​ allowed to be sold
C. Slaves can also be used as collateral but ​not​ their kids
1. Generally, it is ​not​ allowed to separate a female slave from her kids, however, she can
be put up as a collateral because collateral does ​not​ transfer her ownership to the
lender. She is still the property of the borrower
III. The collateral can ​only​ be ​voided​ if it is ​still​ in the ​possession​ of the ​borrower​, however, when it
comes under the ​possession​ of the ​lender​, it can then ​no​ ​longer​ be voided
A. Meaning a borrower ​cannot​ say ​after​ the collateral has come into the possession of the lender
that he wants to void it
1. It then comes under the ​right​ of the lender to void and return the collateral or not

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 IV. The collateral ​cannot​ be sold without ​agreement​ between ​both
A. Both have restrictions on it in order to protect the interests of both
1. The lender cannot do as he pleases with it because he is not its actual owner
2. The borrower cannot do as he pleases with it because it is pledged until the debt is paid
B. If any ​one​ of them sells it ​without​ the other’s ​permission​, the sale will be considered ​invalid
1. Exception​: the borrower frees his slave
a) In this case, the lender will take the ​price​ of the slave as collateral instead. This
is because it is encouraged in the Shariah to free slaves
V. The collateral is a ​trust​ in the hands of the lender
A. This means if the collateral is ​damaged​ or ​stolen​ while under the care of the lender, then he
will ​not​ be insured
1. Provided it took place due to his own ​shortcomings​ or ​transgressions
VI. If the ​borrower​ pledged the ​same​ ​item​ with ​two​ ​different​ ​lenders​ and paid back ​one​ of them or a
lender​ ​received​ ​payment​ from ​one​ of the ​two borrowers​ that pledged the ​same​ ​item​, then in both
cases only a ​portion​ of the debt is considered to be settled
A. In the first case, the borrower still owes the other lender so half of the item is ​still​ collateral
1. Ex: Muhammad pledges his car, which is worth $2000, to Salih and Zayd from whom he
borrowed $1000/each. Muhammad pays Salih back his money but still owes Zayd. In
this case, the car is still considered collateral
B. In the second case, the debt from the second borrower is still owed, thus, the item pledged is
still​ considered collateral
VII. If the ​time​ to pay back the debt arrives and the borrower does ​not​ pay the lender back:
A. If the borrower ​permits​ the lender, he can ​sell​ the collateral and get his money
1. If the price the lender receives in payment is ​over​ the owed amount, then he ​refunds
the ​extra​ amount to the borrower
B. If the borrower does ​not​ permit the lender, then he can go to the ruler or judge to ​force​ the
borrower to either ​sell​ the collateral or ​pay​ him back
1. If the borrower still ​refuses​ to pay or sell the collateral, then he is either jailed or some
other form of ​appropriate​ ​discipline​ is used against him
a) If he ​still​ refuses, then the ​ruler​ can ​intervene​ and ​sell​ the collateral on his
behalf ​without​ his permission and settle the debt
VIII. If the borrower is ​absent​ on the day of the payment of debt, then he will be ​treated​ like the one who
refused​ as in the previous case
IX. The following conditions are ​invalid​, therefore, they ​cannot​ be put into the contract:
A. When the ​borrower​ puts in a condition that ​no​ ​one​ can sell the collateral ​even​ when it is time
to pay off the debt
1. This ​defeats​ the whole ​purpose​ of having a collateral
B. The ​borrower​ ​cannot​ state as a condition that when the ​specified​ ​time​ comes to settle the
debt and he has ​not​ or ​cannot​ pay it off, the lender can ​keep​ the collateral for himself
1. Because this is trying to sell something with a condition in the ​future​ which is ​not
allowed
a) Ex: Someone says, “If I don’t pay you by the 15th of next month for this item,
then you can keep the collateral for yourself as an exchange for the debt”
(1) This is ​invalid​ and ​not​ allowed because you are selling something based
on a future condition
X. The lender is ​allowed​ to ​utilize​ the collateral for ​personal​ use ​without​ the borrower’s permission, if it
is a type of collateral that ​requires​ the lender to ​spend​ on it in order to ​maintain​ it
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 A. However, such a use must be in ​accordance​ to the lender’s spending on it and ​not​ more than
that
B. Ex: if the collateral is a riding animal or a milking animal, then in the former case, he can use it
to ride it and in the latter case, he can use it to milk it
C. This ​cannot​ be applied to types of collateral which do ​not​ need to be maintained or spent on
because the ​general​ ​rule​ is that the lender ​cannot​ personally benefit from it
1. Because it does ​not​ belong to him, rather, it is a ​trust​ under him
2. Ex: a car. Lender can just leave it parked in his driveway without touching it until the debt
is settled
XI. If the lender spends ​extra​ on a collateral ​without​ the borrower’s ​permission​, then it falls under one of
two​ cases:
A. If it was ​possible​ to ask the borrower ​before​ spending on it, then the lender ​cannot​ ask him to
reimburse it
1. Ex: the lender notices some scratches on a watch and goes and gets it fixed without
asking the borrower first even though it was possible for him to do so. In this case, the
lender cannot request the borrower to reimburse him for the incurred expenses
B. If it was ​not​ ​possible​ to ask the borrower, then the lender can ​only​ request the ​lowest​ ​price​ in
the market
1. Provided he ​intended​ to request the money from him when spending on it, otherwise, it
is considered a ​gift
2. Ex: the lender has a sheep as collateral from the borrower and it gets sick, thus, he
needs to rush it to the vet for treatment, which is going to cost money, but there is no
time to request permission from the borrower or the borrower is not available for some
reason. In this case, the lender can request reimbursement
3. Anything paid by the lender ​over​ the lowest price ​available​ in the market will be
considered a ​gift​ and the ​borrower​ is ​not​ required to reimburse that ​extra​ amount
a) Ex: in the sheep example above, if the lender had the sheep treated for $100 but
it usually costs around $50 for a similar treatment, then the lender can ​only
request up to $50 max from the borrower
XII. The following carry the ​same​ rulings as those mentioned under XI because they are all a form of ​trust
just like collateral:
A. Borrowing something
B. Renting something
C. Depositing something
1. Meaning someone tells a person to hold something for them
XIII. If the collateral becomes ​damaged​ under the care of the lender and he gets it ​fixed​, he can ​only​ ask
for the price related to the ​materials​ required to get it fixed
A. This is in reference to types of collateral that do ​not​ require to be fixed, such as, a house, a car,
etc. Meaning, if you were to leave the damage alone on such types of items, it would ​not
completely ​annihilate​ it
1. This is ​opposite​ to a living animal, which if not treated when sick could die
B. Ex: the lender has a car under him as a collateral from the borrower and its window breaks. In
this case, he can ​only​ ask for the price of the window that he paid to replace it
C. However, if the damage is severe and ​necessitates​ getting it fixed and the lender ​intended​ to
get it reimbursed while getting it fixed, then he can ask for reimbursement, otherwise, he ​cannot
do so
1. Meaning it is a type of damage that cannot be ignored
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 2. Ex: there is an electrical wiring problem in the house that is on collateral and not fixing it
could burn the house down

Guarantee
I. This is when a borrower brings in another person as a guarantee to help settle the debt. This is ​valid
and ​permissible​. This means that the debt becomes an ​obligation​ on ​both
A. Ex: Zayd brings his friend Muhammad as a guarantee in the contract that if the former is not
able to pay off the debt or part of the debt, the latter will take care of it
1. Muhammad would be called a ​guarantor​ in this case
B. The ​guarantor​ must have the following qualities:
1. Free
2. Sane and pubscent (​mukallaf​)
3. Mature
a) Meaning he must be mature enough to make financial decisions on his own
II. A guarantor ​cannot​ be used in the following cases:
A. Items left with the lender as a ​trust
1. The ​lender​ ​cannot​ request a guarantor in this case but a ​borrower​ ​can
a) The collateral left with the lender in this case is in itself an assurance for him,
thus, he cannot request a guarantor
B. The ​jizyah​ contract
1. This is the tax paid by the people of the book in an Islamic state
2. This has to come ​directly​ from the person ​mandated​ to give it and ​cannot​ be extended
onto someone else
III. The ​only​ person’s ​agreement​ required in this type of contract is that of the ​guarantor
A. The lender and the borrower have already agreed to enter it before even bringing in the
guarantor
IV. The ​lender​ has the ​right​ to request ​any​ of the two for the ​settlement​ of debt at the time of its ​duration
A. Meaning he does ​not​ have to go to the borrower first, rather, he can go to ​either​ the borrower
or the guarantor because they are both ​responsible​ for the debt

Surety of Appearance
I. Def: This is when someone ​guarantees​ to ​bring​ the debtor to physically ​appear​ in front of the lender
A. In other words, the ​guarantor​ is taking on ​responsibility​ to guarantee the lender that he will
physically​ ​bring​ the debtor to him to pay off his debt. It is a sort of ​insurance​ for the lender
B. If such a person, after taking on this responsibility, is ​unable​ to bring the debtor to ​physically
appear​ in front of the lender, then the debt ​transfers​ to him
II. This is a ​valid​ form of contract and can be used for ​any​ type of loaned ​asset
A. The asset could be cash or material
1. Ex: Ahmad borrows a book from Muhammad. Zayd tells Muhammad that he will
guarantee to bring Ahmad physically to him to assure that he returns the book
III. The only ​consent​ required for this type of contract is that of the ​guarantor
A. The one ​assuring​ the lender to bring the debtor to him is the one entering the contract through
choice​, thus, his consent is the ​only​ one that matters

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IV. If the debtor ​dies​ or the asset is ​damaged​ due to Allah’s decree ​before​ the creditor has requested a
return on the debt, then the ​guarantor​ is considered to be ​free​ from the contract and is ​not​ responsible
anymore
A. Due to Allah’s decree means that it was damaged in a way that was ​not​ in anyone’s ​control​.
There was no way to take ​precaution​ from it
1. Ex: storm, flood, etc.
B. If the debtor dies or the asset is damaged due to Allah’s decree ​after​ the creditor had already
requested a return on the debt, then the guarantor will become ​responsible​ to pay it off

Transfer of Debt
I. Def: This is when a ​debt​ is ​transferred​ from one ​debtor​ to ​another
A. Ex: Muhammad owes Ahmad $100 and Zayd owes Muhammad $100. When Ahmad comes to
collect his debt from Muhammad, the latter tells him to go to Zayd. Then Zayd will pay Ahmad
$100 and will no longer owe anything to Muhammad
II. It is ​permissible​ to do this with the following ​two​ conditions:
A. It should be a ​stable​ debt
1. Meaning the debt is a type that is 100% ​confirmed​ and there is ​no​ ​possibility​ to void it
a) Mahr​ and ​mukataba​ are ​excluded​ for this reason because there is a ​possibility
of ​voiding​ them
B. The two debts ​must​ be ​equal​ in type, time, description, and value
1. Type
a) Meaning it should be the same type of asset
b) Ex: Riyaal for Riyaal
2. Time
a) Meaning they should both be of the same time length
(1) Ex: I cannot transfer my debt that is due now to someone who owes me in
three months
3. Description
a) Ex: if the loaned item was ​sugary​ dates, then the one being transferred the debt
to should ​also​ owe sugary dates
4. Value
a) Meaning the amount should be equal
b) Ex: if Muhammad owes $100 to Zayd and Tariq owes $50 to Muhammad, then
Muhammad can ​only​ transfer ​$50​ of his debt to Tariq, because it has to be the
same​ and the rest he must pay on his own
(1) This is ​valid​ to do even though the ​initial​ debt amounts are different
III. Consent​ is ​required​ for this type of contract ​from​ the following ​two​:
A. One ​making​ the transfer of his ​own​ debt to someone else
B. The ​lender​ whose debt is being ​transferred​ to someone who may ​not​ be able to pay it
1. Generally, the debt should be transferred to someone who is able to pay it off, however,
if it is being transferred to someone who may be ​unable​ to pay it off, then ​consent​ is
required​ from the ​lender​ whose debt is being transferred, otherwise, the transfer would
be considered ​invalid
a) Examples of those who may not be able to pay it off: poor, procrastinator,
bankrupt, etc.

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 b) Basically the ​lender​ in this case has to ​agree​ to ​risk​ having it transferred to
someone who ​may​ not pay it off

Reconciliations in Financial Contracts

I. Def: It is a type of contract to ​settle​ any ​disputes​ between two ​quarreling​ parties
II. It is of ​two​ types:
A. Affirmation​ - when one of the parties ​acknowledges​ the ​claim​ made ​against​ him
1. Ex: Ahmad says Muhammad owes him $100 and Muhammad ​acknowledges​ this but
says he does not have the money right now
2. This type can be further divided into ​two​ types:
a) Reconciliation through the ​same​ ​type​ of asset
(1) Ex: Ahmad claims Muhammad owes him $100 dollars and Muhammad
acknowledges this but says it’s too much and he does not have the
money right now. Then they both ​reconcile​ with $50 dollars, because
Ahmad ​agrees​ to ​exempt​ him of the extra $50 dollars that he owed
(a) In this case, the reconciliation is based on the same type of asset:
dollars
(2) For this type, the party ​making​ the claim against the other either ​forgives
or ​gifts​ a ​part of the debt ​but requests the rest
(a) This is ​valid​ to do provided:
(i) It is someone from whom it is ​valid​ to donate or forgive it
away
(a) Meaning he is sane, free, mature and has authority
over the wealth
(ii) It is done ​without​ utilizing the word ​sulh​ (reconciliation)
(a) Words ​ibraa’​ (exempt) or ​hibah​ (gift) should be
used because the word ​sulh​ ​necessitates
compensation
(iii) It is done ​without​ setting any conditions
b) Reconciliation through ​substituting​ the original type of asset with another
(1) Ex: Muhammad admits he owes $100 to Ahmad but offers his watch
instead​ as a settlement
(2) If it is ​different​ currencies, then it should be ​immediate​ exchange
(a) Ex: Muhammad borrowed dollars but wants to settle the debt in
pounds. This should be done immediately
(3) If the debtor ​offers​ an item for the debt price, then the rules of a ​sale
contract​ will apply as discussed previously in other chapters
(a) Ex: Muhammad borrowed $100 from Ahmed and now Muhammad
is offering an Android phone ​instead​ of paying Ahmed back his
money. In other words, he is offering his phone for a $100
(b) Same for the opposite
(i) Ex: Ahmad borrowed a book from Muhammad but now
wants to offer cash for it instead rather than returning the
book

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 B. Denial​ - when one of the parties does ​not​ ​acknowledge​ the claim made against him but tries to
settle to end the dispute
1. Ex: Ahmad says Muhammad owes him $100 but Muhammad ​denies​ this and says he
owes him nothing or he remains silent
2. In this case, the following ​two​ things are taking place:
a) The debtor ​exempts​ himself from his debt
(1) He is doing this by either denying it or remaining silent
b) The debtor tries to give ​something​ to the lender just to ​settle​ the dispute
3. If any ​one​ of the two is ​lying​, then the reconciliation is ​invalid

Neighborly Property Rights

I. If a neighbor’s ​branch​ from a tree comes into a person’s land, wall, or his space, then the neighbor
must ​remove​ it. Similarly, if someone ​built​ some sort of a ​building​ on another’s property
A. If the ​owner​ of the property ​requested​ the branch or building to be ​removed​ but it remained
and caused some ​damage​, then the neighbor or the builder is ​responsible​ for it
B. In the case of the ​branch​, if the neighbor ​refuses​, then the ​violated​ owner of the property
cannot​ force the neighbor to remove the branch. He should instead just ​bend​ it away from his
property. If it is ​not​ ​possible​ to bend it away, he can ​cut​ it off even ​without​ a judgement from
the ​authorities​. This is because the branch is ​growing​ on its ​own​ into the person’s property
1. However, if it is a ​building​, then the owner ​can​ have the builder ​forcefully​ remove it
through the authorities. This is because it is the builder’s ​own​ doing
II. It is ​permissible​ to have a ​door​ built on a property that ​opens​ to the ​main​ ​street
A. The main street is the street that is shared by everyone in the community
B. The following are ​not​ ​allowed​ except with ​permission​ from the Muslim ​leader​ and provided it
will ​not​ cause ​harm​ to others:
1. A balcony, shade, or something else built that is ​connected​ to the house but ​extends
onto the ​main​ ​street
2. An ​overpass​ or ​bridge​ on main street ​extended​ from the house
3. A ​drainage​ system ​connected​ to the house that ​extends​ onto the main street
C. If it is ​not​ a main street but a street ​shared​ between a ​few​ neighbors:
1. It is ​not​ permissible to do any of the above mentioned in such a situation ​except​ with all
of those neighbors’ ​permission
III. A person is ​not​ allowed to put ​wood​ on his ​neighbor’s​ wall, which he shares with him, ​except​ with the
following ​two​ conditions:
1. He fears that he will ​lose​ his own ​roof​ if he removes it
a) Meaning removing the wood will ​collapse​ his own house. He needs the wood on
the shared wall to keep his own house standing
2. It will ​not​ cause any ​harm​ to the ​neighbor
a) If there is a ​possibility​ of any ​harm​ taking place, then the person will ​not​ be
allowed to do so
B. The ​same​ rules as above apply if there is a ​mosque​ connected to the house
1. Meaning a ​mosque​ that ​shares​ a wall with someone’s house
IV. If the ​shared​ ​wall​ between two neighbors ​collapses​, then one of them can ​request​ the other to build it
back up ​with​ him. If the one requested ​refuses​, then the requester can ​force​ the other to build it with
him. This is because they both are ​responsible​ for it and benefit from it

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 A. The ​same​ ruling applies if they share the ​same​ ​roof​ and there is a fear of it ​collapsing​. They
both are responsible for it, hence, if one of them refuses to get it fixed, the other can force him
to do it
1. This is in reference to houses that have a large shared roof and a wall between the
neighbors to separate the houses
2. Forcing the other means getting the ​authorities​ involved to force the other to pay for his
share
B. If one of them gets it fixed on his ​own​ but ​intends​ to seek ​reimbursement​ for it from his
neighbor for his half later, he may do so, ​otherwise​, it will be considered a form of ​charity
1. Meaning if he intended ​not​ to seek reimbursement ​while​ fixing it, then he ​cannot​ seek it
later
V. If a ​group​ of neighbors ​share​ a ​river​ for some use and it gets damaged in some way, then they ​all​ are
responsible for getting it fixed, therefore, they must all ​chip​ in
A. The same with other ​shared​ ​things​ like a shared water pipe that breaks

Financial Legal Disability (​Hajr​)

I. Def: It implies ​prohibiting​ the dispositions of a person with respect to ​all​ or ​some​ of his property due
to a legal (​shari’​) ​justification
A. In other words, the person is ​prohibited​ from ​spending​ his own wealth
II. Two types
A. It is done for a person’s ​own​ interest
1. Ex: a child may spend his wealth in a destructive manner, therefore, he is appointed a
guardian over his wealth and prevented to do with it as he pleases until he reaches
maturity
B. It is done for ​someone​ ​else’s​ interest
1. Ex: a person who owes money to his lenders but does not have ​enough​ to pay them
back, therefore, he is ​restricted​ from spending his wealth until the debts are ​settled
a) This is done in interest of the ​rights​ owed to ​others
2. The ​Muslim​ ​ruler/judge​ is the ​only​ one that can ​impose​ this type
a) However, he can ​only​ do so if the lender(s) ​request​ it
III. The ​debtor​ is of ​three​ types when the lender(s) request the money back:
A. One who does ​not​ have ​any​ money to pay back his debt(s)
1. He ​cannot​ be forced to pay it back nor can a ​hold​ be put on his spending. Instead, he is
given ​more​ ​time
B. One who has ​enough​ money to pay back his debt(s)
1. He will be ​forced​ to pay it back
C. One who has money but ​not​ ​enough​ to pay back his debt(s)
1. If ​some​ or ​all​ of his lenders request a hold on his wealth, then he will be ​prevented​ from
spending his remaining wealth (​hajr​) by the ​Muslim​ ​ruler
a) Ex: a person owes debts to different lenders in the amount of $1000 but he only
has $500 in the bank. If some or all of his lenders request a hold on his wealth,
then he will have a hold put on his spending and 50% of their loans will be
returned from his wealth because that is all he has in the bank
(1) It is done with ​proportion​ to how much he has vs how much he owes

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 2. It is ​recommended​ to ​alert​ the people about the one who has ​hajr​ ​enacted​ upon him so
that they may ​know​ about his situation and deal with him with ​foresight
3. The one who has ​hajr​ enacted upon him ​cannot​ deal with his wealth as he pleases,
therefore, if he were to buy/sell unnecessary things, then the transaction will be
considered ​invalid
4. If the one who has ​hajr ​enacted upon him ​purchases​ something that is ​not​ a necessity
but ​claims​ that it is not for him but ​someone​ ​else​, then his claim will ​not​ be accepted
a) Because there is a ​possibility​ that he is trying to trick his way out of the legal
restriction
b) Instead​, the item that he bought will be ​sold​ and its price ​distributed​ among his
lender(s), and the ​person​ he claims to have bought it for will be ​added​ to his list
of lenders
(1) So his claim is taken as a ​confession​ that he has another person to
whom he now ​owes​ something
c) Once the ​hajr​ is ​lifted​ from him by the ​Muslim​ ​ruler​, the new added lender can
request his right
5. Whoever ​sold​ something to a person who has ​hajr​ enacted upon him out of ​ignorance
but has ​not​ yet ​received​ a payment for it, then ​after​ learning about the ​hajr ​upon him
may take it ​back​ provided the following ​three​ ​conditions​:
(1) The item has ​not​ ​changed​ in any way and is ​exactly​ as it was when sold
(2) Its ​complete​ ​payment​ is still ​yet​ to be received
(a) If even ​part​ of the payment was made, in ​any​ amount, then he
cannot​ take it back
(3) The item is ​not​ somehow ​connected​ with someone else’s ​right
(a) Meaning the buyer has not ​sold​ it off to someone else nor
someone is using it as ​collateral​, because in those cases the
right​ will now be ​connected​ to ​someone​ ​else
b) If the person in such a case ​knew​ that the buyer has ​hajr​ enacted upon him
before​ selling the item to him, then he ​cannot​ retrieve his item back
6. The one who has ​hajr​ enacted upon him, the Muslim ruler ​sells​ all of his property and
distributes​ it among his lenders
a) He sells ​everything​ that has ​value​ and ​distributes​ it in ​proportion
IV. What should be done about the one who has ​no​ ​ability​ to pay ​anything​?
A. We ​cannot​ request it from him nor jail him for it. Instead, he is given more time
1. He should also ​not​ be pursued constantly with annoyance
2. This ​same​ ruling also applies with the ​lender​ who lent money on ​deferment
a) Lender must ​honor​ his contract. He can ​only​ demand it ​after​ the term is over.
The borrower is ​not​ responsible to pay it back before the term’s end
(1) Ex: if a lender lends money to someone and says he can pay him back
after​ six months, then he ​cannot​ request his money back ​before​ that
period
V. The ​deferred​ debt ​cannot​ be requested in the following ​two​ ​cases​, meaning the lender ​cannot
request ​early​ payment because of it:
A. One who has ​gone​ or ​possibly​ may go ​bankrupt
1. Ex: a lender lends $1000 to Ahmed and agrees to have it paid back to him after one
year. Then after three months Ahmed goes bankrupt. The lender in this case cannot

31
 come to Ahmed and demand his money back just because Ahmed went bankrupt. He
has to honor the contract and let the remaining term pass by before requesting payment
a) The same rule applies to a lender who suspects that the one he lent money to
might go bankrupt by the time his debt is due
B. If the debtor ​dies​ before its time is due and the ​inheritors​ assure the payment of debt via
either:
a) Putting a ​sufficient​ ​collateral​ in place
b) Putting a ​wealthy​ ​guarantor​ to assure the lender that he will pay it if they are
unable
(1) The guarantor must be both ​reliable​ and ​financially​ ​capable
2. Ex: A lender lends $1000 to Ahmed to be paid back after one year. However, Ahmed
dies after 6 months. Technically, the lender can now request his money back from his
inheritance, however, if Ahmad’s inheritors assure him that they will pay it back once the
term is over (6 more months) by putting in place either a sufficient collateral or a wealthy
guarantor. In this case, the lender must wait and cannot request it now
a) If they ​cannot​ assure it in one of the ​two​ ​ways​ mentioned above, then it ​must
be paid ​now​ even if the term has not ended
VI. If ​another​ ​lender​ appeared ​after​ distribution had been completed by the Muslim ruler among the
lenders through ​hajr​, then this ​new​ ​lender​ will ​take​ his share from the ​other​ ​lenders​ in ​proportion​ to
what he is owed
A. Ex: Ahmed owes $20,000 to five lenders for a total of $100,000. The money is due now for all of
them but he only has $50,000 (50%) in the bank, thus, his lenders request a ​hajr​ on him by the
Muslim ruler. Then the ruler takes his $50,000 and distributes it among his lenders by giving
them $10,000 each, which is 50% of what they are owed. After a month, a new lender appears
and claims that he too was owed from the distribution and that he also lent Ahmed $20,000. In
this case, this new lender has to request his money from the other lenders and not the debtor,
because they took his share in his absence
1. How will it be distributed among them now with this new lender?
a) Counting this new lender, the total amount owed by Ahmed to his lenders was
actually $120,000. Since he only had $50,000, or 41.67%, of what he owed to his
lenders in the bank, this means that all lenders should have received 41.67% of
their debt, which is $8334. This new lender will now go to the five lenders and
request $1666.80 from each to complete his owed $8334
B. Only the ​Muslim authority​ can ​release​ the ​hajr
1. It should be released as soon as the debt is paid ​even​ if not completely
a) If only a ​part​ of the debt is paid through ​hajr​, then the debtor is ​still​ responsible
for the rest but the ​hajr ​will be ​lifted​. The lenders can request the ​hajr​ again later
if they want to until the debt is completely paid

Preservation of the Wealth of the ​Mahjoor

I. Mahjoor​ - A person who is prevented or restrained to do business
A. There are ​two​ types
1. Those who can ​only​ be prevented by a Muslim judge/ruler for the interest of ​others
a) Rulings related to such types were discussed in the previous section

32
 2. Those who can be prevented ​without​ a command from a Muslim judge/ruler for their
own​ interest
a) This is what this section discusses
II. Hajr​ is done for the following for their ​own​ ​protection​ even without a command from the Muslim
judge/ruler:
A. Child
B. Insane
C. Foolish - one who spends in an ​immature​ manner
III. Whoever gave the above three types of individuals his wealth, whether as a ​contract​ or ​not​, then he
can ​only​ request back whatever ​remains​ and ​cannot​ claim what was ​lost
A. Because these three are ​not​ considered ​responsible​ for wealth management
B. Ex: a person gives $1000 as a trust to a child to hold onto it for a month, then when he goes to
retain it, he finds out that $500 is missing. He can take the $500 back but cannot request the
rest from the child because the child is not considered responsible for wealth management
1. This is seen as the owner’s own fault because he should have known better
C. However, this is ​only​ when the owner gives the wealth to one of them ​himself​, because if they
take the wealth themselves ​without​ the owner’s ​permission​ and then lose it or destroy it, then
they will be held ​responsible​ through their ​guardian
IV. However, they are considered responsible for the following:
A. Crimes
1. Ex: crimes that result in ​hudood​, such as, murder, theft, etc.
2. This ​only​ relates to the ​foolish​ one. The other two are ​not​ responsible
B. They cause ​destruction​ with something that was ​not​ given to them
1. See note III. C above
V. When a child reaches ​puberty​ ​and​ ​maturity​ or an insane becomes ​sane​ ​and​ ​mature​, the ​hajr​ can
only​ then be lifted:
A. The ​maturity​ part is ​required​ as well and just reaching puberty and sanity alone do ​not​ suffice
1. This is why you need to test them to see if they are mature enough or not
a) If they ​pass​, then their wealth can be ​released​ to them and a judgement is ​not
needed by the judge like in the previous section
b) If they ​continue​ to show ​immaturity​, then keep testing periodically ​until​ they
show maturity
(1) Generally for kids, start early training before puberty (from 7-14)
2. Maturity means:
a) He can buy and sell without anyone ​swindling​ him
(1) This is for the preservation of his wealth
(2) Ex: seller increases the price by 10x, buyer decreases the prices by 10x
(3) If it is just a small amount of taking advantage, then it is fine
b) He does ​not​ spend on ​prohibited​ things
c) He does ​not​ spend on things that have ​no​ ​benefit
(1) Meaning he does ​not​ waste money
VI. Signs a ​male​ has reached puberty. Any ​one​ of the following suffices:
A. Ejaculation
B. Reaches the age of 15 in lunar years
C. Growth of hair around the front private parts
VII. Signs a ​female​ has reached puberty. Any ​one​ of the following suffices:
A. Ejaculation
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 1. Pregnancy is considered evidence for ejaculation as well
B. Reaches the age of 15 in lunar years
C. Growth of hair around the front private parts
D. Menses

Guardianship (​Wilayah)​ of the ​Mahjoor

I. The following can be guardians ​during​ the time of ​hajr​. It should be in the following ​order​:
A. Father
B. Father’s trustee after his death
1. This is usually stated in the will
C. Judge
II. Guardian should take care to do ​whatever​ is in their ​best​ interest
A. Meaning the guardian needs to be ​cautious
III. If a dispute occurs between the guardian and the ​mahjoor​ after the ​hajr​ has been lifted, then it falls into
one of two categories:
A. The guardian’s statement is the one that is ​accepted​ if he claims one of the following reasons:
1. Benefit
a) Ex: Ahmad claims that when he was young his guardian wasted his money,
however, the guardian claims that it was only for Ahmad’s own benefit. The
guardian’s statement is the one that will be believed
2. Necessity
a) Ex: Zayd claims that when he was insane his guardian unnecessarily wasted his
money, however, the guardian claims that it was due to necessity. The guardian’s
statement is the one that will be believed
3. Loss of some wealth
a) Ex: Ahmad claims that when he was young his guardian purposefully lost his
money, however, the guardian claims that he invested it on his behalf but the
investment fell through, thus, he lost it. It was not done on purpose. The
guardian’s statement is the one that will be believed
B. The guardian’s statement is ​not​ accepted
1. Return​ of wealth ​back​ to the ​mahjoor
a) Ex: Ahmad claims after the ​hajr​ has been lifted from him that his guardian has
not handed him over his wealth but the guardian says that he has already done
so. In this case, Ahmad is the one that is believed
2. Exception​: if the guardian was doing his duties for free as a ​volunteer
a) In this case, we accept the guardian’s statement because he is doing it as a ​trust
and there is no ​reason​ to suspect him
IV. If a slave falls into debt ​with​ ​permission​ from his master to deal in financial matters, then the ​master
is responsible for the ​debt
A. Ex: a master tells his slave that he can go to the market and buy stuff on his behalf. The slave
buys something on credit for $1000. In this case, the ​master​ is responsible to pay it off because
he ​permitted​ his slave to spend the wealth
B. If a slave had ​not​ been granted permission from his master and falls into debt, then the master
is ​technically​ not responsible but ​still​ must take care of it, otherwise, that ​particular​ slave of
his will be ​sold​ and the amount will be taken from the ​sale​ ​price​ of that slave

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 1. Same​ ​rule​ applies if the slave either:
a) Damaged property
(1) Even if he damaged it ​unintentionally
(2) Because this is categorized under doing something without the master’s
permission
b) Fine for a crime that he has done
(1) Ex: blood money, indemnity, financial penalty for injury towards others,
etc.
(2) Because this is categorized under doing something without the master’s
permission

Agency Contract (​Wakalah​)

I. Def: it refers to a contract where a ​principal​ (​muwakkil​) ​authorizes​ or ​appoints​ an ​agent​ (​wakeel​) to
do a well-defined legal action on his behalf
A. It ​only​ applies to things in which it is ​allowed​ to do so, because there are things in which this
type of contract will ​not​ be permitted
1. Permitted example​: Ahmad tells his friend Mahmood to go and settle a debt on his
behalf or to sell his car on his behalf
2. Not permitted example​: Ahmad tells his friend Mahmood to pray ​Dhuhr​ on his behalf
II. It is a ​valid​ form of contract as long as:
A. The ​muwakkil​ ​allows​ permission through some sort of ​statement
1. There are no specific words but can be ​any​ form of statement made from him that
indicates​ permission
B. The ​wakeel​ ​says​ or ​does​ something to show that he ​accepts
C. Both the ​muwakkil​ and the ​wakeel​ are among those for whom it is ​allowed​ to ​dispose​ of wealth
1. Ex: a child or an insane person cannot be a ​muwakkil​ or ​wakeel​ because they are
prevented​ from disposing of ​any​ type of wealth whether their own or someone else’s
a) Those who are ​not​ allowed to dispose of their ​own​ wealth are ​automatically
barred from disposing of other people’s wealth
2. If someone is ​allowed​ to dispose of wealth, then he can play the role of ​muwakkil​ or
wakeel
III. It is ​valid​ for following types:
A. Generally, ​any​ right related to a ​human being
1. Exceptions​: ​dhihaar, li’aan, ​oaths
a) Meaning someone else ​cannot​ be appointed to do these things
b) Dhihaar​ and ​li’aan​ are issues related to marriage and dealt in more detail in a
separate chapter
c) Oath example: If someone says, “I swear by Allah that I will do such and such by
appointing so and so to get it done”. This is ​not​ ​valid​ because a person ​cannot
obligate someone else to do something through an oath
(1) Oath obligations ​only​ apply to those who take the oath on ​themselves
B. Some​ of the rights related to ​Allah
1. Hajj​, ​Umrah​, distribution of ​zakkah​ or general charity, and fulfilling vows
a) Ex 1: someone appoints someone with $2000 to give charity to the poor on his
behalf

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 b) Ex 2: someone vowed to fast three days if he passes an exam and succeeds,
however, he is unable to fast due to health issues, thus, he ​requests​ a friend of
his to do it on his behalf
(1) This friend has an ​option​ to either accept or reject the offer
2. It is an ease put in to ​help​ the person
IV. Wakalah​ is a ​jaa’izah​ type of contract
A. Meaning ​either​ party can back out ​whenever​ they want, thereby, ​cancelling​ the contract
B. We can divide contracts into ​three​ types:
1. Laazim​: neither party can back out of it without ​permission​ from the other
a) Both parties become ​committed​ until the end
2. Jaa’izah​: Either party ​can​ step out of the contract ​even​ without permission
a) The contract becomes ​cancelled​ if ​either​ of them steps out
3. Dependent​:​ ​When it is ​laazim​ for one party and ​jaa’iz​ for the other
a) Meaning one can step out but the other is stuck until the end or until the other
steps out
V. The following are ​invalid​ to do ​without​ permission from the ​muwakkil​:
A. The ​wakeel​ ​sells​ the item to ​himself
1. Ex: Ahmad appoints Zayd to sell his car. Zayd takes it and sells it to himself
a) He ​cannot​ do this except with ​permission​ from Ahmad first
B. The ​wakeel​ ​buys​ the item from his ​own​ ​property​ for the ​muwakkil
1. Ex: Ahmad appoints Zayd to buy a car for him for $25,000. Zayd takes the money and
sells him his ​own​ car for that amount
a) He ​cannot​ do this except with ​permission​ from Ahmad first
C. Same​ rules as above apply if the ​wakeel​ sells/buys to or from his family members or his
mukaatib​ (slave who has entered into a contract of manumission)
1. Because there is a possibility of ​conflict of interest
VI. If the ​wakeel​ ​sells​ or ​buys​ something ​less​ or ​more​ than the ​market​ ​value​, then it is ​valid​ but he will
be ​responsible​ for the difference
A. Meaning he will pay the difference
B. Ex 1: Ahmad tells Zayd to ​sell​ his car. Zayd sells it very much ​below​ the market price. In this
case, Zayd is responsible to pay Ahmad the difference
C. Ex 2: Ahmad tells Zayd to ​buy​ a car for him. Zayd buys a car but pays a much ​higher​ price for it
than what it is worth in the market. In this case, Zayd is responsible to pay Ahmad the difference
to cover the extra cost
VII. If the ​wakeel​ is ​only​ responsible for ​delivering​ the goods, then he has ​no​ ​right​ to receive the cash
from the purchaser
A. Meaning there are cases where the ​wakeel​ is ​only​ responsible to ​deliver​ the commodity but is
not​ entrusted to ​receive​ the money for it, rather, the buyer will pay the ​muwakkil​ directly or
some other method arranged between them
1. Ex: Ahmad owns a restaurant and people can order online. Once an order is placed and
payment made online, Ahmad sends a delivery guy to deliver the food
B. Exception​: Due to a reason
1. Meaning if it is a type of sale where reception of cash is ​expected​ to be given to the
seller
a) Ex: Ahmad tells Zayd to sell his car in the market. Zayd takes the car and sells it
to a random stranger in the market. In this case, Zayd is expecting the money

36
 from the stranger before handing him the car keys because there is a possibility
of fraud
VIII. If the ​wakeel​ is made responsible for a ​purchase​ through cash, then he ​delivers​ the cash ​and​ takes
the ​goods
A. Because this is what ​custom​ necessitates
B. Ex: If Ahmad gives Zayd $500 to purchase an item for him, then it is ​expected​ that Zayd will
give​ the money to the seller and ​receive​ the item. It’s not that Zayd will just give the money to
this random seller and walk away
IX. If the ​wakeel​ is entrusted to ​settle​ a ​dispute​ and is ​only​ made responsible for making a ​claim​ on
behalf​ of the ​muwakkil​, then he does ​not​ receive the object of dispute
A. Because he is ​only​ there to ​present​ the ​claim​ of the ​muwakkil​. This is very similar to a lawyer
1. Ex: Ahmad tells Zayd to go to court and present his case against a fraudulent seller that
cheated him in a sale and took money from him in a deceptive manner. In this case,
Zayd will ​only​ go to court to ​present​ the case of his client and will ​not​ receive the
disputed money to give to Ahmad. This is because he was entrusted by Ahmad to only
present his claim
B. However, if the ​muwakkil​ gives ​permission​ to the ​wakeel​ to go and ​obtain​ his right in the
dispute, then this ​automatically​ authorizes the ​wakeel​ to do both: present the claim and receive
the object of dispute
1. This is because the latter ​cannot​ be done without the former
X. The ​volunteer​ ​wakeel​ is generally considered ​trustworthy​, therefore, he is ​not​ responsible for any
loss​ unless he was ​negligent​ or ​transgressed
A. If the ​muwakkil​ ​claims​ without evidence that the volunteer ​wakeel​ was negligent or
transgressed, however, the latter ​denies​ it, then it is the ​volunteer​ ​wakeel​’s​ claim that will be
accepted​ as a general rule
1. In this case, the volunteer ​wakeel ​will be asked to take an ​oath​ denying the allegation of
the ​muwakkil
2. Ex: We ​accept​ the claim of a ​volunteer​ ​wakeel​ that he ​returned​ an item or its price to
the ​muwakkil
a) However, it will ​not​ be accepted if the volunteer ​wakeel​ claims that he returned
an item or its price to an ​inheritor​ of the ​muwakkil​ without ​evidence
(1) Because the contract was between the ​wakeel ​and the ​muwakkil​ and not
the latter’s inheritors
(2) Ex: Ahmad claims that he returned the money that Zayd, who is now
dead, had given him to buy a car on his behalf to the latter’s son. This will
not​ be accepted ​unless​ he brings ​evidence​ that he gave the money to
Zayd’s son
B. If the ​wakeel​ is ​not​ a volunteer but rather is ​paid​ for the job, then his claim is ​not​ accepted in
any​ case and he ​must​ bring evidence to support his claim because there is a ​conflict of
interest
XI. Types of ​wakalah
A. Specific​ - when it is for something very particular and the ​wakeel​ is ​restricted
1. This is ​allowed
2. Ex: Ahmad tells Zayd to sell his house which is located on such and such location
B. General​ - when it is very general and the ​wakeel​ has ​more​ flexibility
1. This is done ​only​ in ​financial​ issues
2. This is ​allowed
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 3. Ex: Ahmad tells Zayd to sell ​any​ one of his cars
C. Authorization​ - when the ​wakeel​ is authorized in everything in one’s life
1. This is ​not​ ​allowed​ due to possibility of ​gharar​ (deception)
XII. Can a ​wakeel​ choose ​another​ ​wakeel​ to do the same work?
A. It is ​allowed​ if it is ​recognized​ and serves the ​interest​ of the ​muwakkil
B. Ex: Zayd appoints Muhammad to buy a car for him. Muhammad passes the job off to Ahmad to
buy a car for him so he can deliver it to Zayd

Partnership (​Sharika​)
I. Def: It is an ​agreement​ between ​two​ or more parties whereby their assets or funds are ​commingled
or their labor, services, obligations and liabilities are ​combined​, with the aim of doing business and
making profit
A. This can be either a:
1. Ownership partnership
a) A type of partnership which basically involves joint ownership by two or more
persons in a particular property ​solely​ for the sake of ​ownership
(1) This type of partnership is usually created by ways of inheritance, wills, or
other situations where two or more persons come to hold an asset in
common
b) Ex: Ahmad and Muhammad both combine their money and purchase a piece of
land together, thereby, becoming its co-owners
2. Contractual partnership
a) A partnership that is formed by means of ​mutual​ ​agreement​ between ​two​ or
more persons who agree that each of them ​contributes​ to the business and is
entitled to a corresponding ​share​ in its financial results (profits or losses)
(1) The contracting parties ​agree​ to combine their assets, efforts, and/or
liabilities for the ​purpose​ of making profits
II. The ​contractual​ ​partnership​ can be divided into ​five​ ​types​:
A. Al-’inaan​: a partnership between ​two or more​ persons, each ​contributing​ ​a portion of the
total​ ​capital​ and ​participating​ ​in work and management​.​ ​Each partner has its share in profit
or loss as ​agreed​ in the contract. Therefore, shares in contributions or profits need ​not​ be equal
between the partners
1. The partners must ​specify​ contributions and profit ​ratios​ by ​agreement
a) Ex: Ahmad and Muhammad agree to go into business with a certain defined
amount of cash invested from each and that the former will take 60% and the
latter will take 40% of the profit
2. All partners involved in this type of partnership ​must​ be among those who are ​allowed
to spend their wealth
a) Meaning those who have ​not​ reached the age of puberty, the insane, etc.
cannot​ get involved in this type of partnership because they have ​restrictions
on their spending
3. The partners ​must​ bring either ​gold, silver, or cash​ as capital for this type of
partnership. It should also be ​known​ exactly how much ​each​ will contribute towards the
capital as mentioned above
4. They both receive their respective ​shares​ in the profits ​immediately

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 a) Meaning they ​cannot​ agree that one will take all the profits for the first six
months and the other the next six months because this leads to ​disputes​. For
example, the business may do really well the first six months and terrible the
following six months or vice versa
B. Mudarabah​: This is a type of partnership where ​one puts forth the capital​ and the ​other
supplies the labor​. The ​split​ of the profit is determined ​before​ the contract is signed
1. The capital should be ​specific​ and ​known
a) We need to know exactly ​how much​ the partner providing the capital is investing
so we can ​determine​ the appropriate amount of profit. If we do not know, then
how can we measure the profit and determine its split?
2. They both will take ​specified​ and ​agreed​ upon ​ratios​ from the profit
a) Ex: Ahmad and Muhammad want to start a business together. Ahmad invests
$50,000 in an ice cream truck business and Muhammad is made in charge of
doing the labor part of it (ordering the ice cream, getting it ready, driving it
around, etc.). They both agree to share the profit 60% for Ahmad and 40% for
Muhammad
3. If there is a ​loss​, then the one who gave the capital loses the ​money​ and the other
loses the ​effort​ that he put into it plus part of the profit that he was suppose to receive
4. Another partner ​cannot​ be added if it will cause ​harm​ to the ​first one
a) This is ​forbidden​ unless the first one ​permits​ it
(1) However, if there is ​no harm​ to the first partner, then it is ​permissible
even without permission
(a) Example of harm​: putting all time and energy in the second
business and ignoring the first, thereby, it not profiting
b) Ex: Ahmad gives Muhammad $50,000 to do a business that the latter will run and
manage. Muhammad takes the money and goes to Zayd and sets up a similar
contract where Zayd gives him another $50,000 to run and manage a separate
business. However, this new venture with Zayd will take a toll on the first
business
(1) This is ​not​ allowed unless Ahmad ​permits​ him to do so because it puts
Ahmad’s investment at risk of not profiting. The agreed upon contract
initially​ was between Ahmad and Muhammad ​alone​, therefore, the
former’s permission is necessary for Muhammad to move forward with
Zayd
c) If another partner was added ​without​ the first partner’s ​permission​ and it ​harms
the first business, then the ​person’s​ ​portion​ of the ​profits​ from the ​second
partnership will be ​added​ to the ​profits​ from the first partnership. It will then be
divided and distributed based on initial agreement
(1) As long as the second ​mudarabah​ contract, done ​without​ permission,
harms​ the first ​mudarabah​ contract, the person’s portion of the profits
from the second will ​continue​ to be taken and ​combined​ with the first
and then ​distributed
(2) Ex: Ahmad gives Muhammad $50,000 to do a business that the latter will
run and manage. They agree to split the profit 50/50. Muhammad takes
the money and goes to Zayd and sets up a similar contract where Zayd
gives him another $50,000 to run and manage a separate business on a
50/50 profit split. However, this new venture with Zayd will take a toll on
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 the first business. In this case, ​whatever​ profit Muhammad receives from
the second business will be ​added​ to the first one and then distributed
50/50 between Ahmad and Muhammad
5. If there is any ​destruction​ or ​loss​ of the capital ​before​ the profit has been ​divided​ and
distributed, it will be ​redeemed​ from the ​profit
a) Ex: Ahmad invests $1000 into a ​mudarabah​ partnership with Muhammad. In
three months, they make a profit of $2000 so now they have $3000 in the bank.
Then in the fourth month, they have a bad month and they lose $500. In this
case, the $500 will be taken from the $2000 profit so now they have $2500 in the
bank and $1500 of profit to split based on initial agreement
(1) As long as the profit has ​not​ been divided and distributed, ​any
destruction or loss from the ​capital​ will be ​redeemed​ from the ​profit
6. Conditions
a) Capital should be gold, silver, or cash
b) Capital should be well identified
c) Clear specification on how profits will be shared
C. Al-Wujuh​: This is a partnership between ​two​ or more persons carrying a business on ​credit
only​ without investment of capital through their own money. They ​purchase​ goods on ​credit​ on
the basis of their ​reputation​ and then sell them to make profit
1. This is allowed by the Hanbalis and Hanafis
2. The ​profit​ belongs to the partners ​only​ and ​not​ the lenders. The latter are only ​owed
the ​amount​ that they ​lended
3. Ex: Ahmad and Muhammad want to go into business together. However, they do not
have enough money to start it. So they both go to a lender and borrow money ​together
to start the business
a) It is ​expected​ that the lender(s) will ​only​ give them the money provided they
have a ​good​ ​reputation​ and/or ​creditworthiness​. A lender will usually ​not​ give
to someone who has a bad reputation or their creditworthiness is weak
4. If there is a ​loss​, then the partners ​share​ in it because they are considered ​agents
(​wakeel​) of each other due to the fact that they are co-owners of the business
a) Meaning they both are ​responsible​ and ​guarantors​ for any loss occurred and
will owe money ​together​ to the lender(s) for any loss even if only one of them
borrowed
5. If one partner borrows 60% and the other 40% and there is a loss, then they ​each​ pay
the lender back with their ​respective​ ​percentages​ to return the money. If one of them is
unable​ to do so, then the other is responsible for it all
a) Ex: if one borrowed 60% of the loan and the other 40%, then that is the amount
that they each owe to the lender(s). Now let’s say one of them had a family
tragedy that cost money and could not pay his portion of the loan, then the other
is responsible for all of it
D. Al-Abdaan​: This is a type of partnership between ​two​ or more where ​neither​ partner puts forth
any capital but ​rely solely on their labor​ to make money
1. Ex: hunting edible animals to sell, catching fish from the sea to sell in the market,
gathering firewood to sell, etc.
2. The labor ​must​ be for something ​permissible
3. Another form of it: ​agreeing​ to ​provide​ some sort of ​labor​ ​service​ to the buyer
a) Ex: tailor, plumber, carpenter, blacksmith, painter, builder, etc.
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 4. Whatever ​profit​ is earned is ​split​ between them based on the ​initial​ ​agreement
5. If ​one​ of the partners ​agrees​ to provide the service to someone, then it becomes
binding​ on ​all​ partners to fulfill it
a) Ex: Muhammad and Zayd are two painters as partners in a business together.
Muhammad meets Uthman and agrees to paint the latter’s house. This job is now
also​ binding on Zayd
(1) Meaning they ​both​ are ​responsible​ to fulfill it
6. If ​one​ of them ​abandons​ the job ​whether​ with or without​ ​a ​legitimate​ excuse, he will
still​ share in the profit
a) Early Hanbalis ​differed​ and said if it is ​without​ a legitimate excuse, then he will
not​ share in the profit
(1) This is ​not​ the official position of the school (​mu’tamad​) for the later
Hanbalis
7. If one of them ​has​ a ​legitimate​ excuse ​not​ to do the job or he does ​not​ know ​how​ to do
it, then he ​must​ find ​someone​ else to ​replace​ him to do the job
E. Al-Mufawadha​: This is a type of partnership where ​two​ or more persons become partners in
every​ financial action that ​any​ one of them takes. They ​equally​ share in both profit and loss
1. Each partner is an ​agent​ as well as a ​guarantor​ for the other partners
2. A partner is ​liable​ for the actions of other partners, therefore, any ​financial​ ​action​ taken
by ​one​ partner automatically ​binds​ all other partners
3. However, ​rare​ types of earnings and losses are ​excluded
a) Meaning if the earning/loss by one of the partners was through a method which is
rare​, then other partners are ​excluded​ from it and will ​not​ share in it
(1) Ex: inheritance, indemnity, guarantor of a loan, etc.
b) This is added as a condition because the ​mufawadha​ type of contract is very
generic and expansive, thus, a ​clarification​ on its ​restriction​ is needed
c) Ex 1: Muhammad and Zayd have a ​mufawadha​ contract with each other.
Muhammad’s father passes away and leaves him $10,000 as inheritance. Zayd
will have no share in this inherited money based on the contract because this is a
rare type of earning that is unusual
d) Ex 2: Muhammad and Zayd have a ​mufawadha​ contract with each other. Zayd is
a guarantor on his friend Uthman’s loan. The time arrives for Uthman to pay his
loan but he is unable to do so due to losing his money on a recent project, thus,
Zayd is now responsible to pay it. In this case, Muhammad will not share in the
loss despite a ​mufawadha​ contract because this is an unusual type of financial
occurance
e) If someone includes this type of earning into this type of contract, then it will
invalidate​ the contract
III. All of the above ​five​ types of contractual partnerships are ​optional​ for the ​participants
A. Meaning ​any​ one of the partners can ​cancel​ it anytime and ​free​ oneself from the contract
IV. The partners in all ​five​ cases above are ​not​ responsible for any ​loss​ unless one of them either
transgressed​ or was ​negligent
A. Meaning ​generally​ any loss will be shared among them based on the contract, however, if one
of them transgressed or was negligent with the partnership money, then that partner ​alone​ will
be ​responsible​ to cover the loss from his ​own​ wealth and others will ​not​ share in the loss

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Watering of Trees (Musaaqaah) and Cultivation of Lands (Muzaar’ah)
I. Definitions:
A. Musaaqaah​ - when someone is given responsibility to ​water​ someone’s ​trees​ with ​specific
share of ​fruits​ in ​return
1. A percentage shareable from all the trees and ​not​ just a specific tree because he is
taking care of all of them
B. Muzaara’ah​ - when someone is given responsibility to ​cultivate​ someone’s ​land​ with ​specific
share of the ​produce​ in ​return
II. Rules related to a ​musaaqaah​ contract
A. Musaaqaah​ contract is ​valid​ for the following:
1. Trees which have ​edible​ fruits
a) Meaning the owner of the trees gives someone ​responsibility​ to ​water​ his
trees​. When they bear ​fruit​, they will ​share​ it according to their ​agreement
2. The fruits ​exist​ on the trees
a) There are two possibilities
(1) The owner gives someone trees to water that do ​not​ have fruit on them
(2) The owner gives someone trees to water that ​do​ have fruits on them
(a) When the fruits ​ripen​ on the trees, they will ​both​ have a share in
them
3. Trees which he ​plants​ and ​works​ on ​until​ they bear fruit
a) Meaning the owner gives someone trees to ​plant​ and ​work​ on them ​until​ they
bear fruits
b) In this case, the one who did the work on them can either take a part of the
fruits​, part of the ​trees​ on the owner’s land, or a part of ​both
B. If the owner ​cancels​ the contract ​before​ the appearance of fruit
1. Then the worker gets his ​pay​ based on the ​amount​ of work he put in
a) The amount will be ​determined​ through ​custom
2. If the ​worker​ is the one that cancels the contract, then he gets ​nothing
a) Because he is ​not​ considered to have completed the job
C. If the owner ​cancels​ the contract ​after​ the appearance of fruit but ​before​ it is ripened
1. Then the worker is ​still​ entitled to his ​share​ of the fruits according to whatever was
agreed​ between them
a) The worker will also ​continue​ maintaining the trees ​until​ its fruits are ready to be
picked because half of the fruits on them are ​his​ property
b) Ex: Muhammad owns fruit trees and asks Zayd to take care of them with the
agreement that they will share the fruits 50/50. After the fruits appear, but still not
yet ready to be picked, Muhammad cancels the contract. In this case, Zayd will
still receive 50% of the fruits that have appeared because he is the owner of
them based on the initial agreement
D. Responsibility​ of the worker and the owner of the trees is as follows during the ​maintenance
period and once the time arrives to ​pick​ the fruits, then ​each​ will receive his ​agreed​ ​upon
share of the fruits:
1. Worker​ is responsible for the following: the fruits’ growth, ripening, harvest, etc. and
anything else either related to or fulfilling such jobs according to ​custom

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 2. Owner​ is responsible for the following: preservation of the land and anything else either
related to or fulfilling such a job according to ​custom
III. Rules related to a ​muzaara’ah​ contract
A. Muzaara’ah​ type of contract is ​valid​ and ​permissible
B. Ex: Muhammad owns a piece of land on which he wants to grow some grains. He goes to Zayd,
a farmer, and tells him to work on his land to grow the grains and that Zayd can have 50% of
whatever the land produces
C. Conditions
1. Knowledge of what ​type​ of seed(s) will be used
a) Meaning they should both be ​agreed​ upon as to what ​type​ of seed(s) will be
planted for growth
2. Knowledge on the ​quantity​ of the seeds
a) Meaning they should both be ​agreed​ upon as to ​how many​ seeds will be
planted
3. The seeds ​must​ be provided by the ​owner​ of the land
a) According to a ​second​ ​opinion​ in the school, this is ​not​ a condition, rather, it is
based upon whatever is ​agreed​ between them. Therefore, it could come from the
owner, the worker, or both

Renting/Hiring Contract (Ijarah)

I. Def: a contract for ​hire​ of persons/services or ​usufruct​ of a property
A. Usufruct: the right to enjoy the use and advantages of another's property
II. It is a ​valid​ and ​permissible​ form of contract
III. It does ​not​ need to be done using certain words for it to be valid
A. It is valid with ​any​ speech or action which ​indicates​ acceptance of the ​ijarah​ contract
IV. Conditions
A. Knowledge of ​benefit​ from the contract
1. Meaning the lessee/hirer ​must​ be able to ​identify​ the ​benefit​ in the contract
a) Ignorance​ of it will ​invalidate​ the contract because how can someone enter
such a contract without knowing the benefit behind it?
b) Ex: I am renting this car so that I may use it to drive to my destination in another
city far away
(1) The benefit here is the ​utility of transportation
B. The benefit which the lessee/hirer hopes to achieve ​must​ in itself be ​permissible
1. Ex: a person ​cannot​ rent a nightclub for the night or hire a prostitute because the
‘benefit’ sought through such means is ​forbidden
C. Knowledge of the ​payment
1. Meaning the rent/hire ​amount​ must be ​clearly​ known ​before​ the contract goes into
effect
a) If it has ​not​ been identified from the beginning, then it will ​invalidate​ the contract
2. Exceptions
a) Giving the payment in the form of ​food​ or ​clothes​ does ​not​ need to be
specifically​ ​identified​ beforehand because it can ​vary​ and is ​not​ fixed
(1) It will be based on ​custom

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 (2) Ex: paying a wet nurse with food and clothing as a form of payment for
breastfeeding
b) If it is a type of hiring/renting contract where the price is ​not​ set beforehand due
to ​custom ​or​ habit​, then it is ​valid​ to make payment after ​despite​ first not
clearly indicating the final payment
(1) Ex: taxi, tailor, boat ride, etc.
(a) The rate may be known but there is no final price set in the
beginning. It will be determined after the job is done
(2) Habit example​: when it is well known to locals how much a trip costs on
a taxi from destination A to B, therefore, they do not ask the driver for the
price before sitting in it and heading to their destination
V. There are ​two​ types of ​ijarah​ contracts:
A. Renting properties
1. Ex: house, car, land, etc.
2. Conditions
a) Knowledge of the property
(1) Meaning having knowledge of its ​characteristics​ and ​details​. It must be
known ​clearly​ what it is that the person is renting
b) Ability​ to hand it over
(1) Meaning the owner has possession of it and someone else is not already
renting it
c) The contract ​must​ be based on the property’s ​utility​ and ​not​ part(s) of it
(1) Ex: a person cannot rent just an engine of a car without rest of the car
because the benefit derived from it can only come about through renting
the whole car as one unit
(2) Exception​: breastfeeding woman’s ​milk​ because it is considered
property​ inside of her
d) The property must ​include​ whatever is ​necessary​ for its utility and purpose of
use
(1) Ex: If it is a house, then it should have all parts which are needed to live
there, such as, bathroom, bedroom, kitchen, running water, etc. Similarly,
a person cannot rent a car without an engine in it because it is necessary
to actually make use of the vehicle
e) The contract ​must​ be undertaken by the ​landlord​ or his ​representative
(1) Meaning the ​owner​ of the property is the one that will actually conduct
the contract
3. It can be divided into ​two​ types
a) Renting the property for a ​specified​ ​period
(1) Ex: Muhammad rents out his apartment to Zayd for 1 year
(2) The ​amount​ of the period ​must​ be such that there is a ​strong
probability (​zann​)​ of the property ​remaining​ useful in it
(a) Ex: a person cannot rent his car for two weeks to someone if it is
in a type of condition that it will most likely become dysfunctional
within a week. If he does so, the contract will be invalid
b) Renting the property for a ​specific​ ​use
(1) Meaning the person rents it for a ​specific​ ​purpose​ after which the
property is returned
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 (2) Ex: Muhammad rents a car to deliver a particular item to someone and
then returns it to the owner
B. Hiring for ​specific​ ​qualities ​or​ skills
1. Ex: teacher, tailor, driver, builder, etc.
2. Conditions
a) Payment must be based on either the ​work​ or the ​time period
(1) Meaning there should be ​no​ ambiguity about it in the contract. ​Details
should be ​clear​ as to ​which​ of the two is intended. They have different
rules applicable to them in the contract based on whether the hired
person is a specific worker or a shared worker
(a) More details between these two types of workers is coming below
insha’Allah
(2) Based on ​work​ ex: the hired worker is paid just ​once​ when the job is
completed
(3) Based on ​time​ period ex: the hired worker is paid ​$100​ ​per​ ​week​ until the
job is completed
(a) Hourly wage workers also fall under this
b) The hired worker should be a person who is ​permitted​ to conduct transactions:
(1) Meaning he should be free, ​mukallaf​ (sane and pubescent), and mature
enough to ​deal​ in transactional matters
c) It cannot be for ​actions​ which ​require​ its doer to be a ​Muslim
(1) Ex: prayer, ​hajj​, ​umrah​, call to prayer, ​iqaamah​, teaching Qur’an, ​fqh,
hadith​, etc.
(2) However, the Hanbalis ​allow​ the person to take payments for such tasks
in the following cases ​provided​ the benefit from it is for ​others​ and ​not
the doer himself. For example, he ​cannot​ be paid to do ​hajj​ for himself
but ​can​ if he does so on behalf of someone else:
(a) Public treasury (​bayt al-maal​)
(i) This is when the leader of the Muslims gives him
something from the public treasury
(b) A reward for performing a service (​ju’alah​)
(i) This is seen as more ​expansive​ and ​flexible​ than a ​ijarah
contract because there are no preconditions set
beforehand and there are no expectations for payment
(ii) Ex: an open promise by one party to pay a reward to
whoever performs a particular task
(iii) There is a separate section dedicated to this type of
contract coming later ​insha’Allah
VI. The ​hirer/lessor​ is ​required​ to do by ​default​ whatever is ​customarily​ done for someone in that
position in his area
A. Ex: provide running water in the house that the owner wants to rent out. Similarly, in the old
days lessors would customarily clean out the property’s sewer before handing the place to the
lessee
VII. The ​hired/lessee​ is ​required​ to do by ​default​ whatever is ​customarily​ done for someone in that
position in his area

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 A. Ex: utility bills for a rented house are customarily paid by the lessee and not the lessor.
Similarly, in the old days the lessee would customarily clean out the property’s sewer before
handing the place back to the lessor
VIII. The hired/lessee can ​choose​ to impose the customary practices on the hirer/lessor instead in the
contract and vice versa, however, in their ​absence​ from the contract the ​custom​ will be taken as the
rule
IX. The ​ijarah​ is a ​laazim​ ​type of contract
A. Laazim​: ​neither​ party can back out of the contract without ​permission​ from the other
1. Both parties become ​committed​ until the end
2. If the ​lessee​ is the one that cancels ​before​ the contract’s term is up, then he must
compensate​ the lessor for the rest ​unless​ the latter agrees to ​forgive​ it
a) Ex: Muhammad agrees to rent out Zayd’s aprtment for six months at $500/month.
However, after three months Muhammad decides to cancel the contract. In this
case, Muhammad must still pay Zayd for the remaining three months even if he
moves out unless Zayd decides to forgive it
3. If the ​lessor​ is the one that cancels before the contract’s term is up, then he gets
nothing
X. The ​ijarah ​contract will be immediately ​voided​ in the following situations:
A. The ​very​ ​thing​ which is being hired/rented becomes ​damaged
1. Ex: Muhammad rents a car for three days but it breaks down after 12 hours
B. Death of the ​baby​ being breastfed
1. This will ​void​ the contract with the wet nurse
C. Tooth that was supposed to be ​removed​ by the dentist but the patient pulled it out himself, the
patient died, etc.
1. This will ​void​ the contract because the ​hired​ has no role to play now
XI. The following ​hired​ ​workers​ in general are ​secure​ from any ​harm​ that may occur on the job, thus,
they will ​not​ be held responsible:
A. The ​specific​ ​worker​ that does something wrong by ​mistake​ because such a worker is
considered a representative of the owner
1. Ex: a housemaid breaks a glass in the house by mistake. In this case, she will ​not​ be
held responsible for her action
a) However, if she did so due to ​negligence​ or ​transgression​, then she will be
considered responsible
2. Specific worker vs shared worker
a) Specific: provides his services ​just​ for ​one​ ​person​ and he is paid based on ​time
(1) Ex: Muhammad hires a driver for a month at his house
b) Shared: provides his services to ​multiple​ clients and he is paid based on the
work​ he performs
(1) Ex: Muhammad goes to a tailor’s shop and gives him a suit to sew
B. Doctors, vets, and cuppers are ​not​ responsible for ​any​ harm that may occur ​provided​ the
following ​three​ conditions:
1. They are ​known​ to be ​skillful​ in their craft
2. They have ​permission​ from the ​mukallaf​ (sane and pubescent) or the ​guardian
3. They were ​neither​ transgressing nor neglectful during the procedure
C. Shepherd who ​herds​ ​sheep​ as long as the harm was ​not​ due to transgression or negligence
1. Meaning he is ​not​ responsible for any harm that may come to the sheep
XII. If someone is a ​shared​ ​worker​, then he is ​responsible​ for ​any​ damage through his action
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 A. Ex: Muhammad goes to a tailor to get a suit sewn but the latter damages the cloth during the
process. In this case, the tailor will be held responsible and must compensate Muhammad
B. However, if it was due to something that was ​not​ in the shared worker’s ​control​, then he is ​not
responsible but he will ​not​ be paid
1. Ex: Muhammad goes to a tailor to get a suit sewn. The tailor completes the job and
places it in the store. Then the store is robbed or is burned down in a fire. In such cases,
the tailor will not be held responsible. However, the tailor will also not be paid for the
completed job in this case because Muhammad never received the completed item
C. It is ​obligatory​ to pay both the shared and specific worker at the ​beginning​ of the contract and
not​ to ​delay​ it until the end ​unless​ they both ​agree​ to do so
XIII. The ​lessee​ is ​not​ responsible for any ​damage​ that may occur ​unless​ it was due to ​negligence​ or
transgression
A. Ex: Muhammad rents out his apartment to Zayd. Then after a few days, the water pipe breaks.
In this case, Zayd is not responsible unless he was the one who caused it due to negligence or
transgression
B. If there is any ​dispute​ that arises between the lessor and the lessee as to who is ​responsible
for the damage of the rented property, then the one who ​denies​ being negligent or
transgressing will be the one given preference

Competition (Musaabaqah)
I. It is ​permissible​ to compete in the following: foot racing, archery, ship racing, spears, racing on
animals, etc.
A. However, ​no reward​ can be given for such competitions ​except​ for the following: camel racing,
horse racing, and archery
1. The ​official​ position of the Hanbali school ​only​ allows reward for these ​three​ types of
competitions. It ​allows​ other competitions ​but​ only if done ​without​ offering a reward
II. Types of rewarded competitions
A. Permissible
1. A ​third​ party pays the reward
a) Meaning this party is ​not​ a participant in the competition but will ​pay​ the reward
to the winner of the competition
(1) Ex: the governor of a state agrees to reward the winner of an archery
competition
b) No disagreement over its permissibility
2. One​ party ​only​ agrees to pay the reward
a) Ex: Ahmad and Muhammad go out to compete in archery. The former agrees to
reward the latter in case Muhammad wins, however, the latter does ​not​ agree to
pay the former anything in case Ahmad wins
3. All​ participants put down money and the winner ​takes​ all provided there is a ​muhallal​ in
place
a) A ​muhallal​ is a person that pays ​nothing​ to enter the competition. If there is no
muhallal,​ then it is ​forbidden
b) Ex: Muhammad, Zayd, and Ahmad go out to compete in camel racing.
Muhammad and Zayd put down $50 each but Ahmad puts down nothing. All
three agree that the winner will take all (i.e. $100)

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 B. Forbidden
1. The loser pays the winner
a) Ex: Ahmad and Zayd go out to compete in archery. They both agree that the
loser will pay the winner a reward
2. All​ participants put down money and the winner takes all and there is ​no​ ​muhallal​ ​in
place
III. Conditions
A. Specification of the ​type​ ​of animal​ competing in the competition if it is a race on a riding animal
1. Meaning it should be ​clear​ whether the competition consists of horses or camels
B. The competing riding animals should be of the ​same​ ​type
1. Meaning you can ​only​ have camels compete with other camels or horses with other
horses. You ​cannot​ have horses competing with camels
C. Specification of the ​shooters
1. Meaning if it is an archery competition, then the ​participating​ archers in the competition
should be identified and ​known
D. Specification of the ​distance
1. Meaning the ​exact​ distance to win the race should be ​defined
E. Knowledge of the ​value​ of the reward
1. Meaning the ​exact​ amount that will be rewarded should be ​known
F. Reward should be of a ​permissible​ nature
1. Meaning it ​cannot​ be from stolen money or a forbidden product, such as, wine
G. It should ​not​ resemble ​gambling
1. Gambling is when all participants put something down and the winner takes all or when
the loser(s) pays the winner

Borrowing
I. Def: when you ​borrow​ an item ​temporarily​ and then ​return​ that ​exact​ item back to its owner ​after​ use
A. Ex: Ahmad borrows plates and cups from Zayd for a dinner gathering and then returns them
after use
B. This is ​different​ than ​ijarah​, where a person ​pays​ rent to use something
C. It is also ​different​ than a ​loan​ when the ​exact​ same item is ​not​ returned but something ​similar
to it
1. Ex: a person is lent a bag of rice to cook for consumption and then buys the owner
another bag to replace it
II. It is ​recommended​ to allow one’s property to be borrowed by others for a ​permissible​ use
III. It is ​permissible​ to borrow another’s property for use
IV. It is ​valid​ to borrow ​anyone’s​ property that brings ​permissible​ ​benefit​ to the borrower ​except​ in the
following cases:
A. Private parts
1. Meaning sexual pleasure. This is ​not​ allowed except through a marriage contract or
through right hand possession
B. Muslim slave borrowed by a disbeliever
1. Meaning it is ​not​ ​allowed​ to give a Muslim slave to a disbeliever for use
C. Hunting animal or its like be given to a ​muhrim ​(someone in a state of ​ihraam​ for ‘Umrah or Hajj)

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 1. Meaning a ​muhrim​ should ​not​ be given to borrow ​anything​ that is ​forbidden​ for him/her
to use ​during​ ​ihraam
a) Ex: a hunting animal should not be temporarily given to a ​muhrim​ to slaughter nor
should he be given perfume to borrow
D. A ​slave girl​ or a ​beardless boy​ should ​not​ be given to someone ​untrustworthy​ to borrow
V. The borrowed ​item​ is considered ​guaranteed​ whether it was due to negligence/excessiveness or not
A. Meaning if the borrower ​lost​ or ​broke​ the borrowed item, ​even​ if accidentally, then he ​must
either:
1. Replace​ it with something ​similar
2. Give the ​price​ of something ​close​ to it based on its ​value​ on the ​day​ the item was
damaged/lost
a) This option is done if the first one is ​unavailable
B. The following are ​exceptions​, meaning the borrower will ​not​ be held ​responsible​ if the
borrowed item is damaged in the following situations:
1. Loss of ​value​ or damage due to ​normal​ use
a) Ex: Ahmad borrows a new shirt from Muhammad. After use, the shirt is no longer
‘new’ but ‘used’. In this case, Ahmad is not responsible for the loss of its value
(1) This is because Muhammad gave Ahmad permission to use it
b) However, if an item loses value or becomes damaged due to its use ​not​ in a
normal way, then the borrower ​will​ be responsible
(1) Ex: Ahmad gives a new shirt to Zayd to borrow thinking the latter will wear
it, however, Zayd uses it to clean the gutters
2. Waqf​ (endowment)
a) Ex: a person borrows some books from a mosque to read and he damages some
of them due to use. In this case, he will ​not​ be held responsible because he is
one of its ​beneficiaries​ and the use of them was ​permitted​ to him
(1) However, if he used them in a ​neglectful​ way which caused damage to
them, then he ​will​ be held responsible
3. Ijarah​ with ​permission​ from the owner
a) Ex: Ahmad is ​renting​ a car for a ​fee​ from Muhammad. Zayd asks Ahmad to let
him borrow it for a few hours. Ahmad calls Muhammad and asks for ​permission
and the latter agrees. Zayd borrows the car but it gets damaged ​without​ his fault.
In this case, Zayd is ​not​ responsible
4. Person allows someone who is ​cut off ​a ​ride​ for Allah’s sake
a) Ex: Ahmad runs into someone on the street who is cut off from his wealth and
needs a ride to get to his destination outside of town. Ahmad allows this person
to borrow his riding animal/vehicle, or offers him a ride with him, for Allah’s sake
to get to his destination. However, the person damages the riding animal/vehicle
in the process. In this case, the borrower will ​not​ be held responsible
VI. It is the responsibility of the ​borrower​ to return the borrowed item and ​not​ the lender to pick it up

Usurpation
I. Def: to take something belonging to someone else by ​force
II. It is a ​major​ sin
III. Whoever usurps someone’s ​permissible​ ​dog​, then he ​must​ return it

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 A. A permissible dog is a dog that is used for hunting, herding, or guarding. These ​three​ are the
only​ cases when it is ​permitted​ to acquire a dog
IV. Whoever usurps a ​dhimmi’s​ wine that he drank in ​private​, then he ​must​ return it because it is
permitted in ​their​ religion
A. However, if he drinks it ​openly​, then he is ​not​ required to return it, rather, it will be ​spilled
B. If the person usurps a ​Muslim’s​ wine, even if he drank it in private, then he does ​not​ return it,
rather, he will ​spill​ it
V. Skin​ of a dead animal (​maytah​) taken by force is ​not​ required to be returned because it is ​impure
A. This is in reference to the ​skin​ of a dead ​pure ​animal that was ​not​ slaughtered according to
Islamic guidelines, such as, a goat that died of a natural cause
1. The list of pure and impure animals was discussed earlier under the Book of Purification
2. The Hanbali school ​allows​ its use on dry surfaces but it can ​never​ be purified even
through tanning according to the ​official​ position of the Hanbali school
VI. If the dog, wine, or the impure skin of a dead pure animal taken by force is ​destroyed​ or ​damaged​,
then there is ​no​ compensation
A. This is because these items carry ​no​ ​value​, thus, they ​cannot​ be sold or bought
B. Ex: Ahmad takes someone’s hunting dog and then kills it. In this case, he is ​not​ required to
compensate the owner for it
VII. If someone ​captures​ a ​free adult Muslim​ by ​force​ and the latter is harmed while in ​custody​, then the
abductor is ​not​ responsible for it unless he ​intended​ to harm him
A. Ex: if the abductor ​neglects​ to give food or drink to the victim and the latter dies, then the
abductor will be responsible, however, if he did give the victim food and drink but he died
anyway, then the kidnapper will not be responsible
B. Exception​: if the abductor captured a child and damaged the child’s clothes or jewelry, then he
will​ be responsible to compensate
C. If the abductor ​forces​ the captured person to ​work​ for him or just ​holds​ him in custody, then he
must ​compensate​ him for as long as he had him in his custody
1. Meaning he is ​obligated​ to provide him with ​compensation​ to cover the loss of pay
while in custody or to pay him for the work that he did
VIII. If someone takes something by ​force​, he must return it ​and​ any ​increase​ that stems from it
A. Ex 1: an animal that gives birth while in custody ​must​ be returned ​with​ its child
B. Ex 2: an animal that weighed 20 kg before usurpation and 30 kg after it must be returned in all.
The one who took it by force ​cannot​ request to be compensated for the extra 10 kg
IX. If someone takes something by ​force​ and he is the ​cause​ of its drop in value while in ​custody​, then he
must​ return the item ​plus​ compensate for its loss in value
A. Ex: a person takes someone’s sheep that is worth $300 by force. While in custody, the sheep
weakens and its value drops to $200. In this case, the person is ​required​ to return the sheep
plus​ pay $100 to compensate for its loss in value because he was the ​cause​ of it
B. However, if the value of the item drops due to the ​market​ and ​not​ due to the one who took it by
force, then he is ​only​ responsible to return it ​without​ having to compensate for the loss of its
value
X. If someone ​forcefully​ starts to ​build​ or ​plant​ something on someone else’s ​land​, then he must:
A. Remove whatever was planted/built on it
B. Compensate the owner of the land if the planting/building caused the land’s value to drop
C. Flatten and fix the land
D. Pay for the length of time he usurped it
1. Because the owner was not able to profit from it nor use it during that time
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XI. If someone usurps another’s ​wealth​ and does ​business​ with it resulting in ​profit​, then he ​must​ return
both​ the original money ​plus​ the profit
A. Ex: Ahmad steals $1000 from Zayd and invests it in a business. Ahmad earns a profit of $1000
so now he has $2000 in possession. In this case, he is obligated to return all of the $2000 back
to Zayd, because the ​original​ money that was usurped from which he profited belonged to him
B. If a ​hunting animal/instrument​ was usurped and ​used​ for hunting an animal, then the one who
usurped it must return ​both​ the hunting animal/instrument ​plus​ what was hunted using it
1. Ex: Zayd steals a falcon belonging to Muhammad. Then Zayd uses it to hunt a rabbit. In
this case, Zayd must return both the falcon and the rabbit back to Muhammad
C. If someone stole a ​harvesting​ ​instrument​ and ​used​ it on a field, then he ​must​ return ​both​ the
instrument ​plus​ what was harvested with it
1. Ex: Zayd steals Ahmad’s sickle and uses it to cut grains from his ​own​ field. In this case,
Zayd must return the sickle ​plus​ the grains that were cut using it back to Ahmad
a) This is because the grains are also considered to belong to Ahmad since it was
his​ instrument that was used ​without​ permission to cut the grains
2. Another opinion in the school says that he returns the ​instrument​ plus ​pays​ the other
person a ​fee​ for using the instrument without permission, thus, it does ​not​ require him to
return what was harvested using it
XII. If someone usurps something from another and ​mixes​ it with another item which makes it ​difficult​ to
distinguish​ between the usurped item and the other, then they become ​partners​ based on the ​degree
of their ​ownership​ in it
A. Ex: Ahmad steals Zayd’s 20 oz oil bottle and mixes it with his own. There is no way to separate
between Zayd’s usurped oil and Ahmad’s own. In this case, they both become partners in its
ownership. Zayd owns 20 oz of this oil and the rest belongs to Ahmad
B. Similar​ ruling applies if someone steals another’s ​clothes​ and ​dyes​ it with another color
1. Ex: Ahmad steals Zayd’s $50 new shirt and dyes it with another color, which increases
its value to $100. The dye now cannot be separated from the shirt. In this case, they
become co-owners and each owns 50% of the shirt
C. If the mixture or dye ​drops​ the usurped item’s ​value​, then the one who usurped it is
responsible​ to compensate the ​owner​ for any ​loss
1. Ex: Ahmad steals Zayd’s $50 new shirt and dyes it with another color, which decreases
its value to $25. The dye now cannot be separated from the shirt. In this case, Ahmad
must pay Zayd the $25 loss because Ahmad is the ​cause​ of the item’s loss in value

Usage of the Usurped Item

I. Whoever buys a ​land​ and starts to ​plant​ or ​build​ on it but then discovers that the land is actually
stolen​, then the land must be ​returned​ to its ​original​ ​owner​ because the ​seller​ had ​no​ ​right​ to sell it
in the first place
A. There are ​two​ who are ​oppressed​ in this situation: the ​original​ ​owner​ and the ​buyer
B. The seller ​must​ pay the buyer with whatever the latter ​lost​ of initial payment ​plus​ investment(s)
II. If a person usurped someone’s ​food​ and then gave it to another to ​eat​, then the ​one who usurped it​ is
responsible
A. Ex: Ahmad steals Muhammad’s sheep and gives it to Zayd to slaughter and eat. Zayd did ​not
know that Ahmad stole it from Muhammad. In this case, Ahmad is responsible to pay
compensation to Muhammad for the sheep

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 B. If the ​one who ate it​ knew it was usurped, then ​he​ is the one that will be held responsible
1. Ex: Ahmad steals Muhammad’s sheep and gives it to Zayd to slaughter and eat. Zayd
knew​ that Ahmad stole it from Muhammad. In this case, Zayd is responsible to pay
compensation to Muhammad for the sheep
III. The ​general​ ​rule​ is that ​compensation​ for a damaged/lost ​usurped​ item is given with something
similar​ to it, if unable, then ​compensation​ is given based on its ​value​ on the ​day​ it was damaged/lost
A. So based on this, items fall into ​two​ categories:
1. Those that ​can​ be compensated with ​similar​ types
a) These ​must​ be purchased as ​replacement​ for the damaged/lost item
b) Ex: bag of food, products available with the same brand and model number, etc.
2. Those that ​cannot​ be compensated with similar types
a) In this case, their ​value​ on the ​day​ of its damage/loss is ​paid​ as compensation
b) Ex: rare jewelry/items, items not in production anymore, etc.
IV. It is ​forbidden​ to ​use​ an item that was ​usurped
A. Meaning ​any​ type of ​use​ of it is ​forbidden
1. Ex: driving a stolen car, eating a stolen bag of rice, etc.
B. Any ​contract​ related to it will be considered ​invalid
1. Meaning a person ​cannot​ usurp someone else’s property and then do ​business​ with it
a) Ex: Zayd steals Ahmad’s car and then sells or rents it to Khalid. The sale or
rental contract to Khalid will be considered ​invalid
C. It ​cannot​ be used in ​worship​ either and will ​invalidate​ it
1. Ex: using stolen water to make ​wudu​ will not count, praying on a stolen land will not
count, etc.
V. The usurped item’s value, amount, or description are ​based​ on the ​claim​ of the ​one who usurped it
unless the ​original owner​ puts forth some ​evidence​ to refute him
A. Meaning if there is a ​dispute​ between the ​owner​ and the ​one who usurped it ​in one of these
three​ attributes, the latter’s claim will be given ​preference​ in this regard if we do ​not​ have any
evidence to ​prefer​ one over the other, ​unless​ the owner brings ​evidence​ to support his own
claim
1. The three attributes
a) Value
(1) This tells us ​how much
(2) Ex: Ahmad stole a watch from Zayd and then damaged it. Ahmad claims
the watch was worth $100 but Zayd says it was worth $150. If we do not
have any way of finding out the actual value, Ahmad’s claim will be given
preference
(a) This is because they both ​agree​ on the $100 and the ​extra​ $50 is
what needs to be proven
b) Amount
(1) This tells us ​how many
(2) Ex: Ahmad claims that Zayd stole two watches from him, however, Zayd
claims it was only one. If we do not have any way of proving one over the
other, Zayd’s claim will be given preference
(a) This is because the ​lower​ number is ​certain​ and the ​higher​ one
is ​doubtful​. Certainty is ​stronger​ than doubt
c) Description
(1) This tells us about the usurped item’s ​attributes
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 (2) Ex: Ahmad claims that Zayd stole a​ red​ ​van​ from him, however, Zayd
claims it was a ​blue​ ​sedan​. If we do not have any way of proving one
over the other, Zayd’s claim will be given preference
VI. If there is a ​dispute​ between the ​owner​ of an usurped item and ​the one who usurped it​ on whether
the item was ​returned​ or not, then the ​owner’s​ statement will be given ​preference​ unless the other
puts forth some ​evidence​ to refute him
A. Ex: Zayd claims that he returned the car that he stole from Ahmad back to him, however,
Ahmad claims Zayd did not. If we do ​not​ have any way of proving one over the other, Ahmad’s
claim will be given ​preference
1. This is because Zayd ​acknowledged​ the existence of usurpation on his part, however,
there is no evidence that he returned it
B. Same with the ​dispute over a defect ​on the returned item
1. Ex: Zayd claims that when he stole Ahmad’s car, it was ​already​ damaged, however,
Ahmad says it was ​not​. If we do ​not​ have any way of proving one over the other,
Ahmad’s claim will be given ​preference
a) This is because the ​absence​ of a defect in an item is the ​general​ ​rule​ and any
defect in it must be ​proven
VII. If someone has an usurped item in his ​hand​ or ​another’s​ item, such as a trust or a pledge, that he
wants to ​return​ but is ​ignorant​ of its ​owner​, then he should give it away as a ​charity​ on ​behalf​ of the
owner. In addition, he should make an ​intention​ of ​guarantee
A. Meaning he does ​not​ have any way of finding out ​who​ the owner is or the owner is
dead/missing without any known inheritors
B. This will ​drop​ the sin of usurpation
C. Ex: Ahmad steals $500 cash from someone’s wallet in a park. After a few months, he repents
but does not know who the owner of the cash was or how to find him. In this case, he can give it
away in charity on the owner’s behalf
D. Meaning of ‘​intention of guarantee​’
1. Meaning he intends that if the owner ever ​comes​ forward to ​claim​ his right, then he will
return​ it by either:
a) Compensating​ him for his loss through payment
b) Returning​ the ​original​ ​item​ from the ​recipient​ of the charity
(1) In addition, he will need to ​compensate​ the recipient for losing the
charitable gift
VIII. Whoever ​destroyed​ something ​respectable​, even if by ​mistake​, is responsible to ​compensate​ for it
A. Respectable means that it is ​permissible​, carries ​value​, and belongs to a ​Muslim​ or ​Dhimmi
1. Ex: Ahmad accidentally steps on Zayd’s watch on the floor and breaks it. In this case,
Ahmad must compensate Zayd even though it was unintentional
B. If he did it on ​purpose​, then he is sinful as well in ​addition​ to being responsible
IX. If someone ​tied​ an ​animal​ in a ​narrow road​ and it damaged something, then the ​owner​ of the animal
will be ​responsible​ to compensate
A. If it is a ​wide​ ​road​, then he will ​not​ be held responsible
X. If a person is ​leading​ an ​animal​ from its ​front​ or ​back​ and this animal ​damages​ something, then the
person is ​responsible​ to compensate for it
A. The same rule applies if the person is ​riding​ it and ​controlling​ it with his hand
B. Ex: Ahmad is riding a horse on its back and it tramples on someone’s property destroying it or it
destroys something with its mouth. In this case, Ahmad will be responsible to compensate for it

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 C. However, if the animal destroys something with its ​back​ ​legs​, then the person is ​not
responsible because he ​cannot​ control that
D. The general rule is that if a person was either the ​doer​ of an act of destruction or the ​cause​ of
it, even if ​indirectly​, then he will be ​responsible​ to compensate for it

Preemption (Shuf’ah)
I. Def: it implies that a co-owner has the ​right​ to ​demand​ a pre-emption from his ​partner​ in a ​jointly
owned ​property​ to purchase it at a certain price, ​before​ other people
A. Ex: Ahmad and Zayd own a business together. They both have a 50/50 take in the company.
Zayd wants to sell his portion of the share in the company. In this case, Ahmad has the ​right​ to
purchase it from him ​before​ the opportunity is given to others by Zayd
II. The ​right​ to preemption is ​established​ given the following ​conditions
A. It should be done ​immediately​ and not delayed
B. The partners must be ​Muslims
1. A non-Muslim partner does ​not​ have a right to preemption
C. The ​selling​ ​partner​ must have complete ​ownership​ of his share
1. Ex: it cannot be a ​waqf​ because there is no specific owner for it, rather, it’s purpose is to
just bring some sort of benefit
D. The share’s ​ownership​ must be ​transferred​ through exchange of ​wealth​ at the price agreed
on in the contract
1. Therefore, it ​cannot​ be given for free like a gift
E. The ​partner​ ​requesting​ preemption should ​already​ be a partner ​before​ the ​selling​ ​partner
decides to sell his portion
1. Ex: Ahmad, Zayd, and Muhammad own a piece of land. Zayd sells his portion to Ibrahim
and Muhammad sells his portion to Bilal. In this case, Bilal cannot request Zayd to sell
his portion to him as well due to right of preemption, because Zayd had already sold it to
Ibrahim before Bilal was even a partner
F. If it is co-ownership in a ​widespread​ land, then it can ​only​ be done provided:
1. There are ​no​ ​boundaries​ on the land ​distinguishing​ who owns what
a) If there were, then they would be considered ​neighbors​ not co-owners of the
whole land
2. It should be ​distributable
a) Meaning it should ​not​ be so ​small​ that it ​cannot​ be divided
3. Any ​plants​ and ​buildings​ on the land will be ​included​ in the preemption contract but
not​ its grown fruits or vegetables
a) The ​selling partner​ has an ​option​ to sell the fruits or vegetables at an ​extra
cost with his portion of the land to the partner seeking preemption
G. The partner ​requesting​ preemption must take the ​whole​ of the sold share and ​not​ just part of it
1. Ex: Ahmad and Zayd own a business together with 50 percent each. Ahmad wants to
sell his share. Zayd offers to buy it from him first but requests only a quarter of his 50
percent
a) This is ​not​ allowed because he ​must​ either take it all or leave it all
III. The following ​invalidates​ and ​drops​ the right of preemption
A. The one ​seeking​ preemption wants ​part​ of the share and not all of it
1. This was discussed in the previous section under II. G.

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 B. The one ​seeking​ preemption is ​unable​ to pay all of it after ​three​ ​days
1. Ex: Ahmad and Zayd are partners in a business. Zayd wants to sell his portion and
Ahmad requests to buy him out. Ahmad agrees to pay half now and the rest in three
days. If he does not pay within that time, then Ahmad will lose his right of preemption
C. If the one ​seeking​ preemption goes to the ​new​ ​buyer​ to buy it from him ​directly
1. Ex: Ahmad and Zayd own a business together. Zayd wants to sell his portion of the
share(s) but Ahmad does not show any interest nor request right of preemption. Zayd
then sells it to Bilal but now Ahmad goes to Bilal and seeks right of preemption to buy it
from him, because he claims that he has more right to it due to the law of preemption.
This is ​not​ allowed
D. If a ​just​ ​person​ informed someone that his business partner had ​sold​ his share(s) to someone
else but he did ​not​ believe him, then this will cause the right of preemption to be ​dropped​ from
the ​unbelieving​ partner
1. Ex: Ahmad informs Zayd that his business partner Bilal has sold his own share of the
land to Muhammad. However, Zayd does not believe him even though Ahmad is just and
reliable. If later on Zayd learns that it was the truth, he will ​not​ have the right to request
preemption
2. If the informer is ​not​ a just person, then right of preemption ​still​ ​remains
a) Ex: Waqas informs Zayd that his partner Bilal has sold his share of the land to
Muhammad. However, Zayd does not believe him because Waqas is unjust and
unreliable. If later on Zayd learns that it was the truth, he will ​still​ have the right
to request preemption
IV. If ​not​ all partners want the selling partner’s share, then the ​one​ that wants it must ​either​ take it all or
leave it all
A. Ex: Ahmad, Zayd, and Muhammad own a piece of land. They each own a third of it. Zayd
decides to sell his share of the land and since Ahmad and Muhammad have more right to it, he
offers it to them first by splitting his portion half between each. Muhammad decides that he is
not interested, however, Ahmad does want to purchase it but only ½ of it. This is not allowed.
He must either take it all or leave it all
V. If a partner ​requests​ to purchase the shares through right of preemption from the selling partner,
however, the former dies ​before​ obtaining them, then it will go to his ​inheritors
A. Ex: Ahmad and Zayd own a business together. Zayd wants to sell his share of the business and
Ahmad requests to buy it through right of preemption, but dies before the sale goes through. In
this case, Ahmad’s inheritors have the right to buy the share from Zayd first before others
B. If he died ​before​ officially ​requesting​ to purchase them, then the preemption does ​not​ apply
even​ if he wanted the selling partner’s portion, thus, his inheritors ​cannot​ demand it either
VI. If a person wants to buy his selling partner’s shares on ​credit​, then he can do so ​provided​ he is
financially​ ​stable
A. If the person is ​not​ financially stable, then he ​must​ bring a ​guarantor​ that is ​financially​ ​stable
to back him up. This means the guarantor will ​cover​ the cost in case the person is unable to
pay
1. If the person does ​not​ bring a guarantor, then he can ​only​ buy the shares if the selling
partner ​agrees
VII. If the selling partner ​acknowledges​ selling his portion to an ​outsider​ but the latter ​denies​ it, then this
secures​ the right to preemption for the ​remaining partner​ if he chooses to buy it from him
A. Ex: Muhammad and Zayd own a land together. Zayd sells his portion of the land to an outsider
without telling Muhammad. When Muhammad finds out, he demands right of preemption,
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 however, the outsider denies the purchase ever took place. In this case, Muhammad will buy
Zayd’s portion of the land from him
B. If the ​selling​ ​partner​ claimed that the ​outsider​ has ​already​ given him the money, then that
money will be considered a ​security​ under him to give ​back​ to the outsider ​whenever​ he
requests it back from him

Trusts
I. Def: when someone is ​authorized​ to ​safeguard​ another’s ​wealth
A. That someone is called a ​wakeel​ and the protected wealth is called a ​trust
1. The ​wakeel​ must be pubescent, sane, and mature
B. Ex: Muhammad asks his friend Abdullah to hold onto his money until he returns from his trip
II. It is ​recommended​ to ​accept​ holding onto someone’s property as a ​trust
A. This is for the one who ​knows​ that he is ​capable​ of fulfilling the trust. If ​not​, then he ​cannot
take it as a trust
B. Once ​accepted​, it is ​obligatory​ to ​preserve​ it in a ​safe place​ of its ​types
1. Ex: if it is jewelry, then it is usually kept in a chest hidden somewhere and not displayed
out in the open
III. If the ​owner​ of the property ​specified​ a particular location for the trust to be held but the ​wakeel​ did
not​ abide by it, then he will be ​responsible​ to ​compensate​ for it if something happened to it
A. Same ruling applies in following cases:
1. Exceeding the limit
a) Ex: someone gives Ahmad $1000 to hold onto and he agrees but then starts
loaning it to others and ends up losing some of it
2. Being neglectful
a) Ex: leaving an entrusted car’s doors unlocked so it gets stolen or not feeding or
watering an entrusted animal that causes it to die
b) However, if proper ​precautions​ were taken but the entrusted wealth was ​still
damaged or destroyed, then the ​wakeel​ is ​not​ responsible
IV. In a case of ​disagreement​, the statement of the ​wakeel​ is ​accepted​ and given ​preference​ in the
following cases:
A. If the ​wakeel​ says that he returned the trust ​back to the owner​ or to ​another​ with the owner’s
permission
1. Ex: Ahmad gives Zayd $1000 as a trust to keep. After a month, Ahmad requests his
money back but Zayd says that he already returned it to him. In this case, Zayd will be
believed because Ahmad considered him trustworthy, which is a condition for Ahmad to
entrust him with the wealth in the first place
a) The ​same​ ​rule​ applies if Zayd told him that he gave it to Muhammad because
Ahmad had ​told​ him to do so
2. However, if the ​owner​ of the wealth ​dies​ and his ​inheritors​ come to the ​wakeel​ to
obtain the trust and he claims to have already given it to them after his death, then in this
case the ​inheritors​ will be believed because they are ​not​ the ones who trusted him with
the wealth
a) Ex: Ahmad gives Zayd $3000 as a trust. Two weeks later Ahmad dies. Then his
inheritors come to Zayd to obtain the money, however, Zayd tells them that he
has already given it back to them. The inheritors disagree

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 (1) In this case, the inheritors will be believed because Zayd being
trustworthy is ​connected​ to Ahmad and ​not​ his inheritors
B. If there is a ​dispute​ as to who ​damaged​ it, then the ​wakeel​ will be believed
1. Ex: Ahmad gives Zayd his car to keep as a trust for one month. When Ahmad arrives to
pick it up, he finds it partially damaged but Zayd tells him that it was already damaged
when he gave it to him. In this case, Zayd will be believed for the same reason stated
before
C. Absence​ of any ​excessiveness​ or ​neglect
1. Meaning if there is ​no​ ​evidence​ that the ​wakeel​ was excessive or neglected the trust in
any way, then he ​will​ be believed
2. Ex: Ahmad gives Zayd his car to keep as a trust for one month. When Ahmad arrives to
pick it up, he finds it partially damaged but Zayd tells him that he did his best to take care
of it but it still got damaged due to circumstances not in his control. In this case, Zayd will
be believed
V. If ​two​ ​partners​ entrust something ​measured​ or ​weighed​ to a ​wakeel​ to keep as a trust and then ​one
of them goes to him later ​alone​ to request his portion back, then he ​will​ be given it
A. Meaning as long as the trust is a type of property that can be ​divided​, it will be ​separated​ and
handed over
B. Ex: Ahmad and Zayd come to Muhammad and give him $1000 to keep as a trust for one month.
Then after two days, Zayd comes to Muhammad and requests his portion back. In this case,
Muhammad can give him $500 from the trust
1. The same goes if they gave him a bag of rice that they both own 50/50. If one of them
came to the ​wakeel​ requesting his portion back, then he can pour out half of the bag of
rice and give it back to that one requesting partner
VI. The following have the ​right​ to ​take back​ the ​usurped​ property on ​behalf​ of the ​owner
A. The one entrusted with his wealth (​wakeel​)
B. The one who is given wealth to purchase something on the owner’s behalf
C. Pledgee
1. A pledge is a thing that is given as security for the fulfillment of a contract or the payment
of a debt
D. Lessee

Revival of Uncultivated Lands

I. Whoever ​revives​ the following ​two types​ of uncultivated ​dead​ lands or ​builds​ something on them,
then he ​becomes​ their owner:
A. Land ​not​ owned by anyone
1. It is ​not​ allowed to do so if it is owned by a Muslim or a ​Dhimmi
B. Land ​not​ designated for ​public​ ​benefit​ even if it is not owned by anyone
1. Examples of lands designated for public benefit: streets and roads
II. There are ​many​ ways to revive a dead land and it is ​generally​ dependent on the ​custom​ of the
people. However, some of the below are examples:
A. Making a well-fortified ​fence/wall​ around it
B. Connecting a ​water source​ on the land and this source is the ​only​ ​connection​ to the
cultivation of the land
C. If the land is a ​swamp​, then ​clearing​ it out in order to prepare it for cultivation

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 D. Digging a ​well​ in it
E. Planting ​trees​ on it
III. If a merchant ​preceded​ others at a spot on a ​wide road ​designated for setting up shops, then he has
more​ ​right​ to sit on the spot and use it than others as long as his ​belongings​ have ​remained​ on it and
it is ​not​ harming anyone
A. In other words, it is a first-come-first-serve basis
B. Examples of ​places​ that would be considered ​harmful​ to others if a merchant set up shop:
1. Places ​not​ designated for buying and selling
2. A ​narrow​ street that would cause ​difficulty​ for people

Reward for Performing a Task (Ju’alah)

I. Def: a contract in which one of the parties (the ​jaa’il​) offers ​specified​ ​compensation/reward​ (the ​ju’l​)
to the ​performer​ of a ​specific​ ​task
A. The task to be ​done​ or its ​duration​ do ​not​ need to be ​known
1. So it is more ​flexible​ and ​broader​ than ​ijarah​ (rental/hire contract)
2. However, the compensation/reward ​must​ be known
B. Ex: a person announces a reward for finding a lost item/person
II. It is ​permissible​ to take compensation for it if the performer ​knew​ about the compensation
A. Meaning if he did it with ​knowledge​ of the compensation/reward, then he ​deserves​ it after
completing the task
1. If he did ​not​ know of it, then he does ​not​ deserve it because he did it as a ​volunteer
III. They ​both​ have the right to ​cancel​ the contract anytime
A. If the ​performer​ cancelled, then he does ​not​ deserve anything
1. Ex: Ahmad announces that whoever builds a wall in front of his house, he will give him
$1000. Zayd accepts and starts to build a wall, however, after completing half of it, Zayd
decides to cancel the deal and not finish it
a) This is ​allowed​ but Zayd will ​not​ deserve anything to compensate him
B. If the ​one giving the compensation/reward​ cancelled, then he ​must​ give the performer
compensation ​according​ to the work he performed
1. Ex: Ahmad announces that whoever builds a wall in front of his house, he will give him
$1000. Zayd accepts and starts to build a wall, however, after completing half of it,
Ahmad decides to cancel the deal and not go forward with it
a) In this case, Ahmad ​must​ compensate him for the work that he has done
IV. Whoever did the work ​without​ intending to ​take​ the ​compensation​ or did it without ​permission​ of the
one giving the compensation/reward, even if intending to take the money, then he gets ​nothing
A. Therefore, in order to ​qualify​ to get the ​ju’alah​, one ​must​:
1. Not​ intend to do it as a ​volunteer​ but complete the task with the ​intention​ of ​getting​ the
compensation/reward
2. Seek ​permission​ from the one ​giving​ the compensation/reward ​before​ taking on the
task
B. Exceptions
1. He ​rescues​ property from the ​sea​ or ​desert​, then he ​gets​ according to what he
deserves. This is because there is ​urgency​ at play here
a) Ex: a ship is sinking into the ocean and a man jumps into the water to retrieve
someone’s belongings

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 2. If he catches a runaway ​slave​, then he gets a ​dinar​ (12 dirhams)
a) This is based on a ​hadith​. In the old days, 12 dirhams ​equalled​ one dinar

Finding Lost Property (Luqatah)

I. Def: Property that the owner ​loses​ and ​another​ person finds
II. They fall into ​three​ types:
A. Things people do ​not​ care about
1. Ex: loaf of bread, shoelace, a few cents, etc.
2. He can ​keep​ it for himself and does ​not​ need to announce it
3. However, this ​varies​ based on time, place, and custom
a) Ex: a loaf of bread may be insignificant in a prosperous time but may be very
valuable during famine. Similarly, one culture may find an item to be valuable but
another not
B. Lost ​animals​ that can ​defend​ themselves from ​small​ ​predatory​ ​animals
1. This may be either through their strength or their speed
2. Ex: cows, camels, horses,etc.
3. They are ​not​ allowed to be taken at all, rather, they should be ​left​ ​alone
C. Remaining types of wealth
1. Ex: baby camels, baby cows, sheep, jewelry, cash, etc.
2. He can take it if he can ​trust​ himself with the ​responsibilities​ that come along with it:
a) It is ​obligatory​ to ​safeguard​ it for the owner
(1) Meaning he keeps it like a ​trust
b) He must ​announce​ it before the people as much as he is able ​except​ inside of
mosques because the Prophet (pbuh) ​forbade​ it
(1) Ex: Markets, newspapers, lost and found, etc.
(a) There is ​no​ one way, rather, he should adopt ​whatever​ is
customary​ in the region to announce lost items
c) He should announce it as much as possible for a ​whole year
(1) Ex: Everyday for a week, then once a week, then once a month, etc.
(2) If ​nobody​ claims it ​after​ a year, then he can ​keep​ it for ​himself
(a) It is ​now​ considered to have come under the ​finder’s​ ownership
even ​without​ the finder’s permission just like inheritance
III. It is ​prohibited​ to do anything with the found item ​before​ having a good ​understanding​ of its various
descriptive​ ​properties
A. Meaning the finder should ​note​ ​down​ its type, model, size, color, and other features
1. All such details need to be ​collected
B. This is so if the ​original​ ​owner​ ever comes forward, the finder can ​verify​ it is his and give it
back to him ​even​ if he comes looking for it ​after​ a year
1. It is ​obligatory​ to give it back if the seeker claims to be the original owner and provides
the correct description
a) If the seeker does ​not​ provide the correct description, then it is ​not​ his right to
take it
2. If the owner comes looking for it but the item is ​not​ in its original form anymore due to
use​ by the finder, then the latter can either ​replace​ it with something similar or ​pay​ him
its value

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IV. If someone’s ​shoes​ are taken and he find’s ​another’s​ ​shoes​ in its place, it will take on the rulings of a
lost item
A. Meaning he will announce it for a year ​if​ the newly found shoes are ​expensive​, otherwise, he
can just keep them
B. This happens a lot in mosques where people accidentally take each other’s shoes especially if
they are similar in features
V. Finding a foundling (​laqeet​)
A. Def: a ​lost​ or ​discarded​ child ​below​ the age of 7 whose lineage is ​unknown
1. It is ​also​ unknown whether the child is a slave or not
2. If the child is ​7 years old or older​, then he/she is ​not​ considered a foundling (​laqeet​)
B. It is a ​communal​ ​obligation​ (​fardh kifayah​) for someone to ​take​ the child in and look after it.
The child ​cannot​ be left alone to die
1. Meaning if ​one​ of them does it, then rest of the community will ​not​ be sinful
2. It is also an ​individual​ ​obligation​ (​fardh ‘ayn​) for one person from the community to
look after the child
C. How does the one who looks after the child ​spend​ on it? There are ​three​ options:
1. If the child has some money, then the finder ​uses​ ​it​ to care for the child
2. If the child does ​not​ have money, then the ​public​ ​treasury​ (​bayt al-maal​) of the Muslims
will be used to look after the child
3. If there is ​no​ public treasury or it ​cannot​ afford it, then the person who is looking after
the child will use his ​own​ ​money​ to take care of the child
a) It will actually be an ​obligation​ on him to use his ​own money​ to take care of the
child
b) In addition, he ​cannot​ intend to seek ​compensation​ for it later because it is
considered a form of ​charity
D. If the child was found in a ​Muslim​ ​country​ or ​majority​ ​Muslim​, then the child should be
considered a Muslim as well
1. If found in a ​non-Muslim country​ or ​majority non-Muslim​, then the child will be
considered non-Muslim as well ​unless​ there is some ​possibility​ that the child may be
Muslim
a) Ex: speaks Arabic, Urdu, has a Muslim sounding name, or looks like someone
whose parents are from a Muslim country, etc.
E. As for whether the child is a ​slave​ or not, then the child is considered ​free​ in the ​absence​ of
any ​proof​ or ​indication​ that the child is a slave
1. This will ​no​ ​longer​ be considered nowadays since the institution of slavery has been
abolished​ around the world, thus, the foundling will ​always​ be considered ​free
F. If someone ​comes​ to claim him, we can hand the child over to him ​provided​ there is some
indication​ to connect the two
1. They should ​link​ somehow

Endowments (Waqf)
I. Def: putting ​aside​ the ​original​ ​property​ and donating its ​benefits​ for the sake of Allah
A. It ​cannot​ be sold, bought, or given away as a gift. It becomes ​locked​ as a ​waqf​ and can ​only
be used for its intended purpose based on the ​intention​ of the ​donor

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 B. Ex: someone leaves a building to be used for the benefit of the poor in the community, someone
leaves a plantation to distribute its produce to the poor, someone leaves Islamic books in a
mosque for the benefit of the worshipers, etc.
II. It is ​recommended
III. How can we know if something is a ​waqf​ or not?
A. The following ​two​ ways are ​valid​ to determine it
1. Statement​ of the donor
a) It could be an ​explicit​ ​statement​ in which case ​no​ ​clarification​ is needed
(1) Ex: someone says, “I give this land of mine as a ​waqf​ for the benefit of the
poor”
b) It could be ​alluded​ to in ​some​ ​way​ in which case a ​clarification is needed
(1) The donor needs to ​clarify​ whether the intention for ​waqf ​was there or not
(2) Ex: someone says, “I donate such and such for the benefit of the poor”
(a) This is ​not​ clear because a general donation has different rulings
than a ​waqf​ so we need to clarify
2. Action​ of the donor which points to it being a ​waqf​ based on custom
a) Ex: someone builds a mosque on his land and allows people to pray in it,
someone builds a graveyard on his land and allows people to be buried in it at no
cost, someone puts free Qur’ans in a mosque, etc.
IV. Conditions
A. It needs to be something ​specifically​ ​known​, valid to ​sell​, and others should be able to
continuously​ ​benefit​ from it
1. Specifically known: meaning we need to know whether it’s a land, house, item, building,
etc.
2. Valid to sell: it ​cannot​ be something that is ​invalid​ to sell
a) The only ​exception​ is the ​mushaf​ (Qur’an). It is ​not​ valid to sell it, however, it
can be given as a ​waqf
3. Continuous benefit: meaning it should be something that can continuously be used over
and over again
B. It should be used for some ​righteous​ action
1. It is ​valid​ for both a Muslim or a ​Dhimmi​ to benefit from it ​regardless​ of who left the
waqf
a) A Muslim can benefit from a ​waqf​ left by a ​Dhimmi​ and vice versa
b) The ​exception​ is the ​mosque​, which ​only​ Muslims can benefit from
C. The ​beneficiaries​ of the ​waqf​ must be ​specified​ so that there is no dispute as to who can
benefit from it
1. Meaning we need to know ​who​ can use it
2. Slaves ​cannot​ be named as beneficiaries
3. In some situations, the beneficiaries do ​not​ need to be specified, such as, mosques or
the poor in general because it is understood
D. The ​donor​ should be among those for whom it is ​valid​ to do what he wants with his wealth
1. This basically means that the donor should be:
a) Free
b) Sane and pubescent (​mukallaf​)
c) Mature (​rasheed​)
E. It must be ​completely​ and ​immediately​ carried out

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 1. Meaning the donor ​cannot​ say, “I give such and such as a ​waqf​ provided such and such
takes place.” Similarly, he ​cannot​ say, “I give such and such as a ​waqf​ for x amount of
time and then it will return back to me”
V. If the ​donor​ puts a ​condition
A. If it ​agrees​ with Islamic law, we will ​accept​, otherwise, no
B. If he makes its beneficiaries ​unrestricted​, then ​anyone​ who ​fits​ into it can use it whether the
person is rich, poor, man, woman, etc.
1. Ex: the donor says, “I give this building as a ​waqf​ for the children of Ahmad ibn Salih.” In
this case, any of the children of Ahmad ibn Salih can benefit from it
VI. Who is ​responsible​ to take care of the ​waqf​?
A. If the donor ​specifies​ a particular ​beneficiary​ for it, then that person is responsible
1. Ex: Ahmad says, “I give this as a ​waqf​ to my son Hassan.” In this case, Hassan is
responsible for it
B. If the donor specifies ​multiple​ ​beneficiaries​ that are ​not​ too large, then they are ​all
responsible in their ​own​ ​shares
1. Ex: Ahmad says, “I give this as a ​waqf​ to all my four sons.” In this case, all four sons are
responsible in proportion to their shares
C. If the donor does ​not​ specify particular beneficiaries and the number is ​too​ ​large​ who fit into it,
then the ​ruler​ is responsible
1. Ex: Ahmad says, “I give this as a ​waqf​ to the poor in the community.” This number is too
large and they ​cannot​ all be responsible, therefore, the ​ruler​ will become responsible
2. The same goes for ​waqf​ like a mosque
VII. If the donor leaves a ​waqf​ for his ​walad​ or the ​walad​ of another​, then it includes ​both​ male and
female children ​equally
A. Walad​ is an Arabic term which refers to ​both​ male and female children
B. However, after these children die, then it ​only​ includes the ​descendents​ of the ​male children
because progeny is ​attributed​ through the male line
VIII. If the donor leaves a ​waqf​ to the ​descendents​ of a ​particular​ ​individual​ by saying, “I leave this as a
waqf​ for ​bani​ Ahmad​,” then it ​only​ includes Ahmad’s ​sons
A. Bani​ is an Arabic terms which means ​male​ children
B. Similarly, if the donor leaves a ​waqf​ to the descendents of a particular individual by saying, “I
leave this as a ​waqf ​for ​banaat​ Ahmad​,” then it ​only​ includes Ahmad’s ​daughters
1. Banaat​ is an Arabic terms which means ​female​ children
C. If the ​Bani of so and so​ is in ​reference​ to a ​tribe​ and ​not​ a particular individual, then it includes
both​ males and females of that tribe ​and​ their descendants
1. However, if the females marry ​outside​ of the tribe, then their children will ​not​ be
included in the ​waqf​ because progeny is ​attributed​ through the ​male​ line
IX. If the donor leaves ​waqf​ to his family (​quraabah​), household (​ahl​), or nation (​qawm​), then it ​includes
the following provided they are of the ​same​ ​religion​ as the ​donor​:
1. Children of the father
a) Meaning the donor’s own children and his siblings and their children
2. Children of the grandfather
a) Meaning the donor’s father, aunts, and uncles
3. Children of the great grandfather
a) Meaning the donor’s grandfather and his siblings
B. If there is some ​linkage​ or ​context​ to indicate that the donor ​intended​ to include those of a
different religion than his own as well, then they will be included also
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 X. If the donor leaves a ​waqf​ for a ​group of people
A. If their restriction is ​possible​, then it is ​obligatory​ to spread it among them ​equally
1. Ex: someone says, “I leave this as a ​waqf​ for the sons of my brother”
a) We can count the sons so we will spread it among them equally
B. If their restriction is ​not​ ​possible​ due to their large number, then it is ​allowed​ to give
preference​ to some over others
1. Meaning they will all ​not​ be given equally. Some may be given ​more​ than others while
some may ​not​ be given anything
a) This is because it is ​not​ feasible to spread it among all

Gifts (Hibah)
I. Def: ​transfer​ of ​ownership​ of one’s available ​wealth​ to another in the ​former’s​ ​lifetime​ without
exchange
A. Without exchange means that it is done for ​free​ without requesting anything in return (i.e. gift or
donation)
B. A gift which is given ​after​ one’s death is called a ​will ​or a ​bequest
1. Rulings concerning them are discussed in a separate chapter
II. It is ​recommended
III. Anything​ that is ​valid​ to ​sell​ in the religion can also be given as a gift ​including​ a ​mushaf​ (Qur’an)
IV. It will ​occur​ with ​any​ act that ​customarily​ indicates that the person is ​giving​ a gift
A. Meaning there are ​no​ specific words required to be said to consider something a gift, rather,
any​ action which is ​customarily​ taken to mean that it is a gift will ​suffice
V. Gift is ​considered​ a form of ​contract​ and it has ​two​ phases
A. Before​ it is ​possessed​ by the ​receiver
1. In this stage, the contract is considered ​jaa’iz​, which means the giver is ​permitted​ to
cancel​ it and can decide ​not​ to go forward with giving the gift
B. After​ it is ​possessed​ by the ​receiver​ with ​permission​ from the ​giver
1. In this stage, the contract is considered ​laazim,​ which means the giver is ​prohibited​ to
cancel it and request it ​back​ from the receiver
2. Permission​ from the ​giver​ means that the receiver ​cannot​ take it ​without​ the giver’s
authorization​ just because the latter agreed to give it to him
a) Ex: Ahmad tells Zayd that he would like to gift him $500. Zayd accepts but fears
that Ahmad may change his mind so he takes it out of his wallet without
permission
(1) This is ​not​ allowed and will ​not​ make the gift contract ​laazim
VI. If the ​creditor​ gifts what he is ​owed​ to the ​debtor​, then it will ​free​ the latter of the debt ​even​ if he does
not accept
A. Ex: Ahmad owes Zayd $2000. Then one day Zayd tells Ahmad, “I free you of the $2000 that you
owe me.” In this case, Ahmad will be considered debt free
VII. It is ​obligatory​ to give ​each​ ​inheritor​ a gift according to their ​assigned​ ​shares​ in Islamic inheritance
law
A. Ex: If someone gave one of their kids a gift, then he must give all who would inherit from him
according to their shares. For example, if he gave his son $1000, then he must give his
daughter $500 and the rest of the inheritors their assigned shares as a gift as well unless they
agree to forgo it

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 B. If the ​giver​ gives a specific inheritor ​more​ out of ​preference​ without the permission of the rest
of the inheritors, then it will be ​reclaimed​ or ​adjusted​ according to the ​assigned​ ​shares​ in
Islamic inheritance law ​provided​ it is done ​while​ the giver is still ​alive
1. If the giver died ​before​ it could be ​reclaimed​ or ​adjusted​, then he would have ​sinned
and the property will ​remain​ with the preferred inheritor
a) Ex: If a father gave his son a gift of $1000, then he must either give his daughter
$500 or reclaim the gift from his son. If he did ​not​ do so and ​died​ on that, then
the father would incur a ​sin​ and the money would ​remain​ with the son
2. However, ​only​ a ​father​ can reclaim from his children as will be discussed later in this
chapter ​insha’Allah
VIII. It is ​prohibited​ for the ​giver​ to ​reclaim​ the gift ​after​ it is in ​possession​ of the ​receiver
A. It is ​disliked​ to reclaim it ​before​ it is in ​possession​ of the ​receiver
B. However, the ​father​ is ​excluded​ from this rule
1. Meaning if the ​father​ gives his kid(s) a gift, then he is​ permitted​ to reclaim it ​even​ after
the kid(s) has taken possession of it. This is because the father ​owns​ his children and
their wealth
2. The father can ​acquire​ his children’s wealth by ​possessing​ it with a ​statement​ or
intention​ of taking his child’s wealth
a) Meaning the father must either ​verbalize​ it or ​intend​ it
(1) Verbal example: Father says to his son, “I am taking your car” or “I am
transferring ownership of your car to me”
(2) Intention example: Father takes his son’s car with the intention of
transferring its ownership to himself
b) However, there are some ​conditions​ that ​must​ be met for it to be ​valid
(1) He ​cannot​ take his son’s ​slave​ ​girl​ with whom the son has had sexual
relations
(2) Taking it should ​not​ harm the son
(a) Meaning it does not put the son in some sort of difficulty
(3) He does ​not​ take it to give it to ​another​ child
(4) It ​cannot​ be in a situation where one of them has a ​disease​ that will
soon​ lead to ​death
(a) This is because in this situation ​restriction​ is put on the dying
person’s wealth so that inheritors’ ​rights​ are ​not​ violated
(5) If the father is a ​non-Muslim​ and the son a Muslim, then the father
cannot​ take his wealth
IX. A child or his descendents ​cannot​ request the former’s ​father​ to pay back his ​debt
A. Ex: Ahmad loaned $3000 to his father. Ahmad’s kids or him can ​never​ go to his father and
request it back because the father ​owns​ whatever wealth the child has
B. Exception​: if the child ​needs​ money to spend on ​basic​ ​necessitates​, then he can ask his
father to spend on him because this is ​obligatory​ on the father when the child is in need
1. Ex: the son loses his job and cannot pay for basic necessities any longer
X. Rulings on the one who is ​afflicted​ with an ​illness
A. Illnesses are of ​two​ types
1. It is ​not​ a serious illness
a) Meaning the person does ​not​ think he will ​die​ from it
b) This person will be treated just like a ​healthy​ person, thus, he can do what he
wants with his wealth
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 2. It ​is​ a serious illness
a) Meaning the person thinks he will ​likely​ die from it
b) Ex: stage 4 cancer
c) In this situation, we will seek ​opinions​ of ​two​ just Muslim ​doctors​ and if they
confirm​ that it is indeed serious, then the following ​two​ rules will apply on the
afflicted individual:
(1) He will be ​prevented​ from giving ​anything​ voluntarily to any of his
inheritors
(a) This is to ​safeguard​ the ​rights​ of the inheritors
(2) He will be ​allowed​ to give up to ​one-third only ​to someone who is ​not
an inheritor. If he wants to give more than that, then it can ​only​ be done
with the ​permission​ of all his inheritors
B. If it is an ​extended​ ​chronic illness​, then it falls into ​two​ types
1. Type which does ​not​ restrict the person to a ​bed
a) He will be treated just like a ​healthy​ ​person
2. Type which ​does​ restrict the person to a ​bed
a) We ​treat​ him like the one afflicted with a ​serious illness
XI. Whether someone is considered an inheritor or not is ​determined ​based on the situation ​at the time of
death
A. Meaning there are situations where someone could be an inheritor one day but not another
depending on the situation, therefore, we will determine at the time of death whether someone
is an inheritor or not to the deceased
1. Ex: If a person does ​not​ have a son, then his siblings inherit from him. However, if the
person ​does​ have a son, then the son ​blocks​ the siblings from inheriting. Therefore, we
will determine at the time of death whether someone qualifies as an inheritor or not
a) Ex: Ahmad has a son named Zayd and also a brother named Muhammad.
Muhammad is not considered an inheritor because Zayd blocks him. If Zayd died
before his father, then Muhammad would inherit from his brother Ahmad
2. These rules are discussed in more details under the chapter related to Islamic
inheritance law
XII. Difference​ between a ​gift​, which is given in one’s lifetime, and a ​will​ (​wasiyyah)​ , which is a gift given
after one’s death. Depending on whether the giver ​intends​ a gift or will, the rules regarding each differ
A. If the gift was given to multiple people but it was not enough, then the first one will get it only
1. Ex: Ahmad announces to give three of his friends a gift of $1000 each in his lifetime on
three separate days. Then he dies in a car accident before giving them anything. After
measuring his estate, it is found that one third of his wealth is equal to $1000 only, which
is the max he can give. In this case, we will only give it to the first one and the other two
will get nothing
2. If it is a will, then we distribute it equally
a) Ex: Ahmad writes in his will that after his death three of his friends be given
$1000 each. However, it is found that he only has $1000 to give because his
estate’s one third equals to only $1000. In this case, we will equally divide the
$1000 between his three friends
B. It is ​not​ valid to request to take ​back​ a gift once it is possessed
1. If it is a will, giver ​can​ take it back ​anytime​ before death
a) Because it only becomes ​binding​ (​laazim​) ​after​ death
C. Gift can be ​accepted/rejected ​by the ​receiver​ in the giver’s ​lifetime
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 1. If it is a will, the receiver can ​only​ accept/reject it ​after​ the giver ​dies
D. The gift becomes ​owned​ in the giver’s ​lifetime
1. If it is a will, it will ​only​ become owned ​after​ the giver’s death

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