content of level
Commercial transaction is the exchange of property or benefit in the form of trade which is permissible as long as it happens in a certain frame. It’s preferred to have witnesses especially in large deals.
Endowment means dedicating something that can give benefit, while retaining ownership of it, in order to gain reward from Allah. This means that the principal is retained, but the yield is given freely
Borrowing is using a non-consumable item that doesn't belong to oneself and returning it intact after an agreed amount of time by the owner. Only the owner can lend his things and to be used in a lawful purpose
Conditions for hire
Hiring is required to fulfill seven conditions, hiring a sane adult capable employee within a specific period. The benefits should be specific, and the work itself should be lawful and managed by the hirer.
Hiring process in Islam is a process of assigning somebody to do specific tasks for a specific period of time. It is a method described in Quraan and Sunnah and it's mandatory to pay the employees their wages on time.
Partnership: definition and rulings
Partnership is joining two properties together and having joint rights. Upon being partners in a property, the rights including will, inheritance or gift are shared and supposed to be documented by a contract.
Purchase by installments
Purchasing by installment is paying the value of a purchased item divided on installments paid at specific dates agreed on by both parties. This process is permissible in Islam as long as it fulfills 4 rules.
Endowment means dedicating something that can give benefit, while retaining ownership of it, in order to gain reward from Allah. This means that the principal is retained, but the yield is given freely.
Conditions of Borrowing
The borrower and the person lending the article should be qualified to take such an action, and the borrowed article should be owned by the person lending it.
To borrow means to gain the benefit of something, but it remains intact. Borrowing is lawful and encouraged in Islam because it is implied in Allah’s order: ‘Help one another in furthering righteousness and piety’ (5: 2).
Conditions of Hire
Ijaarah means a contract to obtain a known benefit in an ongoing arrangement for a specific period from a known or described object, or a contract to get some specific work for a specified remuneration.
Partnership (Sharikah) means joining two properties together so that they cannot be separated. In Islamic contexts it means ‘having joint rights or actions’.This includes the rights to inheritance, will, or a gift that gives shares of benefit or ownership. This is also called ‘partnership in ownership’.Allah says: ‘Thus do many partners wrong one another, except for those who believe and do righteous deeds’ (38: 24) and ‘If there be more, then they shall share in one-third’ (4: 12).
The Arabic term rahn, which means ‘surety’, is defined as giving something of value as security for a debt.
A loan is money given by one person to another to be returned later in the same amount, so as to benefit the recipient only. It is legitimate, as is clearly stated in numerous Qur’anic verses and Hadith.
Types of Usury
One: Riba al-Fa l (i.e. an increase in quantity). This means that the two items exchanged in a particular deal are of the same type but the quantity of one of them is more than the other. Two: Riba al-Nas’ah (i.e. increase for a delay). This refers to an additional quantity of one of the exchanged items in return for delayed payment, or in return for delayed possession in the sale of two kinds that share the reason applicable to Riba al-Fadhl when one of them is not money.
Definition and Ruling: The Arabic term riba, which means ‘usury’, originally means ‘increase’. In Islamic usage it means ‘an increase in one of the two exchanged items without a compensation to offset this increase. Allah says: ‘Allah has made trade lawful and usury forbidden’ (2: 275).
Purchase by installments
This refers to a sale where the price of what is purchased is being paid in instalments at specific dates or times.