Moqbel, T . and Ahmed, H. (2020) 'Flexibility and Shari'ah compliance of Islamic financial contracts : an evaluative framework.', Arab law quarterly., 35 (1-2). pp. 92-115.
Abstract
Although the key distinguishing feature of Islamic finance is compliance with Sharīʿah, there is criticism from various quarters on the Sharīʿah compliance of its products. However, there is no objective way to assess the Sharīʿah compliance of Islamic financial contracts. This article develops a structured framework for analysing Sharīʿah compliance of Islamic financial contracts by deconstructing them and developing principles of evaluation based on concepts from Islamic legal theory. Other than providing a framework to assess Sharīʿah compliance of Islamic financial contracts, this article also alludes to an important issue regarding the contracts’ flexibility. Using concepts from Islamic legal theory, the article classifies different contractual stipulations according to their legal weight, and identifies how legal perspectives on the requirements of compliance can determine the flexibility of contracts. An evaluative framework is used to assess the Sharīʿah compliance of an actual muḍārabah (silent partnership) contract and finds it to be defective.
Item Type: | Article |
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Full text: | Publisher-imposed embargo (AM) Accepted Manuscript File format - PDF (817Kb) |
Full text: | (VoR) Version of Record Available under License - Creative Commons Attribution. Download PDF (Advance online version) (637Kb) |
Full text: | (VoR) Version of Record Available under License - Creative Commons Attribution 4.0. Download PDF (570Kb) |
Status: | Peer-reviewed |
Publisher Web site: | https://doi.org/10.1163/15730255-BJA10052 |
Publisher statement: | © Tareq Moqbel and Habib Ahmed, 2020. This is an open access article distributed under the terms of the CC BY 4.0 licence. |
Date accepted: | 12 May 2020 |
Date deposited: | 29 May 2020 |
Date of first online publication: | 22 July 2020 |
Date first made open access: | 27 August 2020 |
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