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Islamic Law of Business Contracts and Transactions
Islamic Law of Business Contracts and Transactions grounded in Shariah provides a framework ensuring fairness. It promotes transparency and ethical behavior in business dealings. Here we delve into major conditions that must be met. For contracts to be considered valid under Shariah these conditions ensure that contracts align with Islamic principles. They maintain integrity of […]
Types of Contracts in Islamic Law
Shariah classifies contracts into three main types. Let’s have a look at different types of Contracts in Islamic Law. 1. Contracts Resulting In A Permanent Transfer Of Ownership These are the contracts that result in a permanent transfer of ownership of the subject matter of the contract. For example, a regular sale (or bai) of […]
How does Islamic finance work?
If we examine the objectives of Shariah, we can extract a common theme from them, which is the removal of Zulm or injustice from society. We do this by requiring that all financing complies with Shariah law, for example, ensuring that the institutions are dealing with financial products that do not contain any of the […]
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Major Prohibitions in Islamic Finance
Why are the Major Prohibitions Important? The general Shariah principle used for transactions is that ‘everything is permitted unless specifically prohibited by Shariah’. This means that under Shariah guidelines, we can do anything, as long as it is not prohibited. Therefore, understanding the Major Prohibitions in Islamic Finance under Shariah for business transactions and contracts is […]
The Rationale for Islamic Finance
What is Islamic Finance? Islamic finance represents a distinct approach to managing investing and distributing money by adhering to Islamic principles or guidelines collectively referred to as Shariah. To understand Islamic finance it’s crucial to first grasp the underlying objectives of the system it operates within. These objectives were identified by a prominent Muslim scholar […]
Target Costing – A Quick Overview
What is Target Costing? Target costing is the technique where the management decides on a target cost for the products or services and uses it as the basis of pricing and costing decisions. It must be noted that target costing is not considered very practical and useful for service-based industries where the primary cost is […]
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