We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Financial Contracts in Islamic law compared to that of American Law - Dissertation Example

Comments (0)
Financial Contracts in Islamic Law compared to American Law Financial contracts under Islamic law are different than conventional contracts and are based on certain factors that associate a valid agreement with the legal standing of the parties that are interested in creating the contract…
Download full paper
Financial Contracts in Islamic law compared to that of American Law
Read TextPreview

Extract of sample
Financial Contracts in Islamic law compared to that of American Law

Download file to see previous pages... Financial contracts can be entered in both written and verbal formats and must be discussed and accepted during a single meeting without any noticeable interruptions including multiple negotiation sessions or changes in the meeting venue. Unlike provisions under American law, Islamic financial contracts can be accepted based on personal conduct of the parties (Hassan, 2007). Under special circumstances, non-responsiveness to a given contract proposal is taken as an acceptance. Islamic law also allows further flexibility among parties within a given meeting session whereby parties have the right to refuse a contract up to the point when either party leaves the meeting venue physically. However, variations do exist over the interpretation, implementation and recognition of this feature even within countries where Islamic finance is practiced (Vogel, 2008). Contents of the financial contracts under Islamic law are prohibited from discussing or relating with any item prohibited by the religion. Such substances include alcohol and tobacco besides prohibition on gambling. All applicable items that constitute the contract content must further be in the possession or ownership of either party and legally exist at the time of the initiation of the contract (Rayner, 2001). In simple words, items that will be devised in the future may not be included in an Islamic contract. Specific properties of all these items including specifications, origin and quality must be clearly states in the terms of the contract. Other than deals that involve the exchange of money, the exact price at which the goods will be delivered should be agreed upon prior to contract agreement (Hassan, 2007). Contracts based on future prices that are speculative in nature are not allowed and cannot be developed based on the advice of a third party. While there are several types of Islamic financial contract, the most common one that is used for sale and exchange of goods is known as mu’awadat. Goods can be sold either for money or can be exchanges as part of a barter transaction. Even exchange of money is valid under Islamic contract. Real estate or equipment can be leased to external parties by using another type of contract known as the ‘ijara’ (Vogel, 2008). The concept of Islamic contracts has been in existence for several centuries in regions like the Middle East, Asia and North Africa where Islam continues to be a major religion (Ayub, 2009). Islamic finance is considered as a tool from the almighty and is based upon relevant Islamic principles that place a high value on moral principles that is expected of all followers of the religion. Conventional American law is aimed at helping create contracts that are ‘ethical’ in nature. Islamic finance advocates a similar approach when developing contracts and related transactions. However, this feature must not lead to an assumption that Islamic contracts bear a close resemblance with Western contracts (Rayner, 2001). In fact, contracts agreed upon under Islamic law are rather less binding than conventional American contracts that imply all aspects covered under them. Legal advice and further scrutiny is thus necessary in the case of Islamic contracts to understand the circumstances under which a contract may not be valid. In addition, the application of Islamic contracts has not been uniform across the Islamic world. While countries like Pakistan and Iran apply Islamic law in a stringent fashion, other countries ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
An Evaluation of the Service Quality of Islamic Banks in Bahrain: An Empirical Study Abstract
Responsiveness, empathy and tangibles all garnered agreement, while the assurance dimension received slight agreement overall. Moreover, on the perceptions of IBCs on the same dimensions, agreement was likewise garnered on responsiveness, assurance, and tangibles.
68 Pages(17000 words)Dissertation
Islamic Insurance Law
Conventional insurance, however, has been a taboo for the Muslim world as the premium insurance companies offer, lack of correct knowledge by their customers and the way cost of damages has to be borne by some unconnected persons had hitherto been debated.
63 Pages(15750 words)Dissertation
Why the Islamic Financial System has the Strength to Mitigate the Current Financial Crisis
Why the Islamic Financial System has the Strength to Mitigate the Current Financial Crisis? The research study is an analytical approach towards evaluation of the Islamic financial system for measuring its effectiveness to mitigate the present financial crisis in the world.
63 Pages(15750 words)Dissertation
How Islamic law and American law deals with various aspects of the human life
According to the research findings there appears to be a misunderstanding of Islamic law to the non-Muslim nations who may want to associate the law with violent behavior. On closer look Shari’ah is accepted in Islamic countries as word from Allah and therefore there should be proper understanding of the law before embarking on debates.
13 Pages(3250 words)Dissertation
Insurance Law
Insurance products provide people with a safety net against various financial risks in different areas of their life (Clarke, 2005; Thomson, 2001). Hence, insurance products are designed to cater to the widespread need of people that provides them with financial security to cope under crisis situation.
6 Pages(1500 words)Dissertation
Islamic Finance Law
In the changing format of globalization and technology, the complex structure of international, national and regional economics and finance has become a major challenge for the global entities. The traditional model of financial institutions needs to incorporate wider interests of emerging new pluralistic society.
6 Pages(1500 words)Dissertation
International Arbitration and Islamic Law or Sharia Law
The procedure of arbitration is basically designed and executed within a sphere of private, unofficial, rapid and economical environment with the provision of the parties in exercising additional control over the process with the addition of clauses at the juncture of dispute evolution and simultaneously transforming certain rules of the arbitration for suiting up of a particular dispute.
20 Pages(5000 words)Dissertation
International Arbitration in Arab States
A Comparative Study of International Arbitration in Arab States Abstract This research study conducts a comparative study of the arbitration laws and practices of the Arab Middle East, specifically, Saudi Arabia, Egypt and Jordan. This research is conducted using a library desk-top method in which primary and secondary data is collected.
53 Pages(13250 words)Dissertation
Finality of arbitral awards under Islamic or sharia law
The principles according to which some Islamic schools abide by are incompatible with the practices of international arbitration; however, there are other Islamic schools whose interpretations are consistent with the international practices, which are permissible for Muslims to follow or adopt.2 Arbitration as a contemporary legal system for settling international disputes was relatively recently introduced in the Islamic world, most of which had dealt with oil disputes.3 For many years and in some cases until today, countries in the Arab region which operate under Islamic rule have not fully developed a legal system implementing arbitration, leaving the general impression that the courts in
52 Pages(13000 words)Dissertation
Would Islamic financial system be able to prevent the current global financial crisis Discuss
Would Islamic financial system be able to prevent the current global financial crisis? The global financial crisis of 2008 is largely attributed to the vulnerability to risk in the capitalist financial systems and an inherent lack of discipline in its investment and lending practices.1 Islamic banking and finance on the other hand, is described as more risk averse and highly disciplined in its investment and lending policies and practices.2 Studies comparing the performance of Islamic banks and conventional banks during the 2008 global financial crisis suggests that Islamic banks were more efficient,3 more profitable or more stable.4 Rawshan argues however, that Islamic banks were largely avo
49 Pages(12250 words)Dissertation
Let us find you another Dissertation on topic Financial Contracts in Islamic law compared to that of American Law for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us