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<p>Preface xi</p> <p>List of Abbreviations xiii</p> <p>Acknowledgments xv</p> <p>Introduction: An Overview of Prohibited Elements 1</p> <p>Usury (<i>Riba</i>) 2</p> <p>Ambiguities in a Contract (<i>Gharar</i>) 3</p> <p>Gambling (<i>Maysir</i>) 4</p> <p>Prohibited (<i>Haram</i>) Properties 5</p> <p><b>1 The Contract of Sale (</b><b><i>Bay’</i></b> <b>) 7</b></p> <p>Introduction 8</p> <p>The Pillars of a Sale Contract 9</p> <p>Prohibited Sales and Practices 14</p> <p>Contentious Sales 19</p> <p>Chapter Questions 29</p> <p>Notes 30</p> <p><b>2 Types and Classifications of Sales 33</b></p> <p>Introduction 34</p> <p>Trust Sales (<i>Buyu’ al-amanah</i>) 35</p> <p>Deferred Payment Sale (<i>Bay’ Bi-thaman Aajil</i>) 36</p> <p>Islamic Banks and a Sale Contract 37</p> <p>Future Commodity Sale (<i>Bay’ al-Salam</i>) 39</p> <p>Manufacturing Sale (<i>Bay’al-Istisna’</i>) 43</p> <p>Currency Exchange (<i>Bay’ al-Sarf</i>) 47</p> <p>Chapter Questions 49</p> <p>Notes 50</p> <p><b>3 The Contracts of Employment and Lease (</b><b><i>Ijarah</i></b><b>),</b></p> <p>Borrowing (<i>I’arah</i>), and Reward (<i>Ja’alah</i>) 51</p> <p>Introduction 52</p> <p>The Pillars of the <i>Ijarah</i> Contract 53</p> <p>The Contract of Borrowing Things (<i>al-I’arah</i>) 60</p> <p>The Contract of Reward for Service (<i>al-Ja’alah</i>) 61</p> <p>Chapter Questions 64</p> <p>Notes 65</p> <p><b>4 The Contract of Agency (</b><b><i>Wakalah</i></b><b>) 67</b></p> <p>Introduction 68</p> <p>The Pillars of an Agency (<i>Wakalah</i>) Contract 69</p> <p>The Types of Agency 70</p> <p>Agency in Sale 71</p> <p>Agency in Purchase 73</p> <p>The Effects and the Rights and Liabilities of the Contracting Parties 74</p> <p>An Agent Appointing Another Agent 75</p> <p>Unauthorised Agency (<i>al-Fadhalah</i>) 76</p> <p>Termination of an Agency 76</p> <p>Chapter Questions 77</p> <p>Notes 78</p> <p><b>5 The Contract of Loan (</b><b><i>al-Qard</i></b> <b>) 79</b></p> <p>Introduction 80</p> <p>Loan (<i>Qard</i>), Debt (<i>Dayn</i>), and Borrowing Things (<i>I’arah</i>) 81</p> <p>A Loan That Provides Conditional Benefi t to the Lender 82</p> <p>Waiting or Giving Time to a Borrower Is a Commendable Act 84</p> <p>Chapter Questions 84</p> <p>Notes 86</p> <p><b>6 The Contract of Safekeeping (</b><b><i>al-Wadi’ah</i></b><b>) 87</b></p> <p>Introduction 88</p> <p>The Pillars of <i>Wadi’ah</i> Contracts 89</p> <p>Relationship Between the Parties 89</p> <p>When Is the Depository Held Liable? 90</p> <p>Using Deposited Money for Investment 91</p> <p><i>Wadi’ah</i> and Islamic Banks 92</p> <p>Termination of <i>Wadi’ah</i> 92</p> <p>The Differences Between the Contracts of <i>Wadi’ah</i> and <i>Qard</i> 93</p> <p>Chapter Questions 93</p> <p>Notes 94</p> <p><b>7 Partnership (</b><b><i>al-Sharikat</i></b><b>) 95</b></p> <p>Introduction 96</p> <p>Division of <i>al-Sharikat</i> 96</p> <p>Capital Partnerships (<i>Sharikat al-Amwal</i>) 98</p> <p>Management of Partnership (<i>Sharikat al-’Inan</i>) 101</p> <p>Partnership of Services (<i>Sharikat al-a’mal</i>) 101</p> <p>Partnership of Reputation or Creditworthiness (<i>Sharikat al-Wujuh</i>) 102</p> <p>Partnership (<i>Sharikat al-’Inan/Musharakah</i>) and Islamic Banks 104</p> <p>Dissolution of Partnership 106</p> <p>Chapter Questions 107</p> <p>Notes 109</p> <p><b>8 Silent Partnership (</b><b><i>Mudarabah/Qirad</i></b> <b>) 111</b></p> <p>Introduction 112</p> <p>Pillars of <i>Mudarabah</i> Contract 113</p> <p>The Status of <i>Sahib al-mal</i> and <i>Mudarib</i> 114</p> <p>Distribution of Profit and Treatment of Losses 114</p> <p>Types of <i>Mudarabah</i> 115</p> <p>Personal Expenses of the <i>Mudarib</i> 116</p> <p>What the <i>Mudarib</i> Cannot Do 117</p> <p>Void <i>Mudarabah</i> 117</p> <p>Termination of <i>Mudarabah</i> 118</p> <p>The Differences Between <i>Musharakah</i> and <i>Mudarabah</i> 119</p> <p>Chapter Questions 119</p> <p>Notes 121</p> <p><b>9 Pledge, Mortgage, or Pawn (</b><b><i>al-Rahn</i></b><b>) 123</b></p> <p>Introduction 124</p> <p>The Pillars of Pledge (<i>Rahn</i>) 125</p> <p>The Use of the Pledge by the Pledgee 126</p> <p>Forfeiture of the Pledged Property 127</p> <p>Chapter Questions 128</p> <p>Notes 128</p> <p><b>10 Guarantee (</b><b><i>al-Kafalah</i></b><b>) 129</b></p> <p>Introduction 130</p> <p>Pillars of <i>Kafalah</i> 131</p> <p>The Effects of <i>Kafalah</i> 132</p> <p>Immediate, Conditional, and Suspended <i>Kafalah</i> 132</p> <p>Types of <i>Kafalah</i> 132</p> <p>Charging a Fee for the Service of Guarantee 133</p> <p>Letter of Guarantee 134</p> <p>Termination of <i>Kafalah</i> 134</p> <p>Chapter Questions 135</p> <p>Notes 136</p> <p><b>11 Transfer of Debt (</b><b><i>al-Hawalah</i></b><b>) 137</b></p> <p>Introduction 138</p> <p>Pillars of <i>Hawalah</i> 140</p> <p>Types of <i>Hawalah</i> 140</p> <p>Transfer of Right (<i>Hawalat al-Haqq</i>) 141</p> <p>Bill of Exchange (<i>Suftaja</i>) 141</p> <p>Termination of <i>Hawalah</i> 142</p> <p>The Differences Between <i>Hawalah</i> and <i>Kafalah</i> 142</p> <p>The Difference Between <i>Hawalah</i> and the Sale of Debt (<i>Bay’ al-Dayn</i>) 143</p> <p>Chapter Questions 143</p> <p>Notes 144</p> <p><b>12 The Contracts of Absolution (</b><b><i>al-Ibra</i></b><b>) and Set-Off (</b><b><i>al-Muqassah</i></b><b>) 145</b></p> <p>Introduction 146</p> <p>The Subject-Matter of <i>Ibra</i> 146</p> <p>The Pillars of <i>Ibra</i> 147</p> <p>Types of <i>Ibra</i> 149</p> <p>The Effect of an <i>Ibra</i> 149</p> <p>The Differences Between Absolution (<i>Ibra</i>) and Gift (<i>Hibah</i>) 150</p> <p>The Contract of Set-Off (<i>al-Muqassah</i>) 150</p> <p>Classification of <i>Muqassah</i> 150</p> <p>Chapter Questions 152</p> <p>Notes 153</p> <p>Answers to True/False Questions 155</p> <p>Bibliography 161</p> <p>About the Author 165</p> <p>Index 167</p>

<strong>Muhammad Yusuf Saleem</strong> was born in Afghanistan. He obtained a Bachelor of Laws (LLB) from International Islamic University Malaysia in 1992, where he also studied his Master of Comparative Laws (MCL) and obtained a PhD in 2003. He is currently an Assistant Professor at the Faculty of Economics and Management Sciences, International Islamic University, Malaysia. He has taught a series of courses on Fiqh for Economist, Islamic Transactions (Mu'amalat), Islamic Jurisprudence (Usul al-Fiqh), Islamic banking and finance, zakat, waqf and Islamic law of inheritance (Faraidh). He has also taught Islamic Finance, and Fiqh al-mu'amalt courses for postgraduate students at the Graduate School of Management and at the IIUM Institute of Islamic Banking and Finance. Dr. Saleem contributed several articles to various local and international journals. He has participated and presented papers in international conferences in Kuala Lumpur, Dhaka, Jeddah, and Bahrain. Among his works are An Introduction to the Theoretical Foundations of Islamic Transactions, Muslim Powerlessness and the Nation-state, Methods and Methodologies in Fiqh and Islamic Economics, Mutawalli Institutions for the Management of Waqf Properties, Form v. Substance in Islamic Banking and Financial Transactions, and the Application of Ibra and Muqassah to House Financing Contracts.

<p>"This book, written by a member of the new generation of competent and informed Islamic Shari'ah scholars, is one of the clearest expositions of the intricacies of Islamic commercial law. The central focus of the book is the crucial condition that the litmus test of Islamic legitimacy of any commercial contract is its organic relationship with real assets, therefore, with the real sector of the economy. It is a valuable contribution to efforts at demystifying Islamic finance; it is well worth reading."<br /> <b>—Abbas Mirakhor, Holder of INCEIF Chair in Islamic Finance</b></p> <p>"The book no doubt is a valuable addition to the Islamic commercial transaction subject as it discusses the different types of contracts in Islamic commercial law. In addition to the discussion on the fundamental and theoretical aspects of Islamic commercial contracts, the writer also explains briefly the application of those contracts in Islamic finance world today. One of the salient features of this textbook format is that the writer has provided true-or-false questions at the end of each topic as well as a short essay-type question on the type of contract discussed."<br /> <b>—Mohamad Akram Laldin, International Shari'ah Research Academy for Islamic Finance (ISRA)</b></p> <p>"Prof. Saleem's book on Islamic commercial law coherently covers all the major contracts as applied in the contemporary Islamic finance industry. The book explains lucidly some of the difficult concepts and principles governing Islamic finance transactions. The learning outcomes at the beginning of each chapter serve as a useful guide for students, while the questions at the end of each chapter assist the students in their comprehension of the subject matter. This book is highly recommended for beginners in Islamic finance."<br /> <b>—Rafe Haneef, CEO, HSBC Amanah Malaysia Bhd</b></p> <p>"Shari'ah compliance in commercial, business, and banking activities is necessary for Muslims. This necessitates a demand for a book that would introduce all the essential contracts associated with Islamic commerce, banking, and finance. <i>Islamic Commercial Law</i> by Dr. Saleem has combined the theory with the practice and is a timely and welcome addition to the existing literature in English. The book is part of the rich teaching experience at the Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia. The beneficiaries will be university students and practitioners in Islamic financial institutions."<br /> <b>—Khaliq Ahmad, Dean, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia</b></p> <p>"The emergence of Islamic banking and finance has refocused attention on Islamic transactions and commercial laws. <i>Islamic Commercial Law</i> is a timely and welcome addition to the growing literature on the subject. It is the first book in English to introduce all the essential contracts on Islamic commerce and finance in one volume. The author also incorporates diagrams, examples, and questions that offer a better understanding of the various commercial and financial transactions. This makes the book an important text and essential reading for the undergraduate and postgraduate students and for all those who work in Islamic financial institutions. I congratulate Dr. Saleem for providing students and practitioners with a useful resource that combines the theory with the practice."<br /> <b>—Moha Asri Abdullah, Head, Department of Economics, International Islamic University Malaysia</b></p>

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