بسم الله الرحمن الرحيم

Kitāb Al-Buyoo’ (Fiqh Al-Muyassar) Lesson 5 Notes (21 Jumada Ath-Thani 1446 H - 22/12/24) Continuation... المسألة السابعة: الإقالة في البيع Rescission in Sale (Al-Iqālah) If the sale is completed and there is no khiyār, it becomes binding, and neither party has the right to rescind it except by mutual consent. Rescission by mutual consent is called "Iqālah." Thus, Iqālah is the cancellation or annulment of a contract that has been made between the contracting parties, by mutual consent. This occurs when one of the parties regrets the contract, or when the buyer realises that they no longer need the item, or is unable to pay for it. In such cases, both the buyer and the seller return to their original positions without any increase or decrease in what was initially agreed upon. RULING: - Requesting Iqālah (cancellation of a contract) is ALLOWED, although the other party is not obligated to accept the request. It is, however, ENCOURAGED for them to accept and proceed with Iqālah, as the Messenger of Allāh ﷺ said: ((من أقال مسلما بيعته أقال الله عثرته يوم القيامة)) "Whoever cancels a sale for a Muslim, Allah will cancel his faults on the Day of Judgment." [Narrated by Abu Dawood (3482) and Ibn Majah (2199); graded Sahih by Al-Albani] BENEFIT: Iqālah is considered an annulment (فسخ) if it is carried out for the original price. However, if the price is higher or lower, it transforms into a new sale contract, even if the term Iqālah is used. In such cases, the same conditions that apply to a sale must be fulfilled. [المعاملات المالية أصالة ومعاصرة (7/421)] _________ المسألة الثامنة: بيع المرابحة The Murābaḥah Contract Murābaḥah is a type of cost-plus financing used in Islamic banking. Instead of lending money with interest (which is prohibited in Islam), the bank: Buys an item that the customer wants (e.g., a car, equipment, property). Sells it to the customer at an agreed-upon markup, which includes the bank’s profit. This profit can either be a fixed amount or a known percentage (e.g. 2.5% of item's value) additional to the cost of the item. The customer pays the price in installments or sometimes immediately. EXAMPLE: - A customer wants to purchase a house worth £200,000. - The financial institution buys the house from the seller for £200,000 and agrees to sell it to the customer for £220,000, with a £20,000 profit margin. - The customer pays the £220,000 to the institution, either immediately or over a set period in installments. NOTE: This type of transaction includes a commitment (وعد) from the client to purchase the commodity under the agreed terms, as well as a commitment (وعد) from the institute to complete the sale under the specified conditions. RULING: This type of sale is valid according to most scholars, provided that the conditions are fulfilled. Allāh, the Exalted, says: ﴿وَأَحَلَّ ٱللهُ ٱلۡبَیۡعَ وَحَرَّمَ ٱلرِّبَوٰا۟﴾ "And Allah has permitted trade..." [Surah Al-Baqarah: 275] And He, the Glorified, also says: ﴿...إِلَّاۤ أَن تَكُونَ تِجَـٰرَةً عَن تَرَاضࣲ مِّنكُمۡ﴾ "Except that it be a trade by mutual consent..." [Surah An-Nisāʾ: 29] Murābaḥah ensures the satisfaction of both contracting parties, and its permissibility is vital because some people are not skilled in purchasing items themselves and thus rely on others to buy them, agreeing upon a fixed and known profit. Conditions of Murābaḥah Contract: 1. The price of the commodity must be known to the buyer, along with any additional costs incurred. 2. The profit must be clearly specified, either as a fixed amount or a percentage of the commodity's price. 3. It must consist of fungible goods (ذوات الأمثال), meaning goods that have equivalents, such as measurable or weighable items. 4. The initial contract must be valid because the Murabaha sale is based on the initial contract. If the initial contract is invalid, the Murabaha sale is not permissible.