Introduction to Islamic Commercial Law
Islamic Commercial Law
Introduction
Islam
In general the essence of Islam is originated from the principle and values from the Quran and traditions of the Prophet Muhammad.
Revelation of the Quran is the starting point of the history of Islamic Law. Quran consists of legal principles and injunctions which focuses on issues such as marriage, divorce, ritual, succession, penal code and last but not least commercial transactions.
Another source is the traditions of Prophet Muhammad which records the saying, tacit and actions approval of the Prophet Muhammad. The areas cover under the traditions of Prophet Muhammad are wider than the legal verses in Quran.
A system known as Shariah is created with the aim to direct and guide humanity to the realization of its moral potential. Shariah is believe to be referred to as commands, prohibitions, guidance and principle under Islam and is the clear path for the follower and believer to follow in order to obtain guidance in this world and deliverance in the next.
Shariah Serves as a guidance in term of belief, moral conduct and practical rulings
or law.
The common principle of moral values In Islamic Commercial Transaction include honesty or Amanah in all statements, warranties and representations, tolerance in terms of bargaining where the parties are encouraged to be considerate to each other’s condition, and requirement as well as circumstance, timeliness in the payment of debt or delivery of an asset and mutual revocation of a contract on request by one party if he find himself uncomfortable with the outcome of the transaction.
As an example moral values have been incorporated as a legal requirement in some specific contracts such as Murabahah or mark up financing or Amanah / honesty.
Introduction
Islam
In general the essence of Islam is originated from the principle and values from the Quran and traditions of the Prophet Muhammad.
Revelation of the Quran is the starting point of the history of Islamic Law. Quran consists of legal principles and injunctions which focuses on issues such as marriage, divorce, ritual, succession, penal code and last but not least commercial transactions.
Another source is the traditions of Prophet Muhammad which records the saying, tacit and actions approval of the Prophet Muhammad. The areas cover under the traditions of Prophet Muhammad are wider than the legal verses in Quran.
A system known as Shariah is created with the aim to direct and guide humanity to the realization of its moral potential. Shariah is believe to be referred to as commands, prohibitions, guidance and principle under Islam and is the clear path for the follower and believer to follow in order to obtain guidance in this world and deliverance in the next.
Shariah Serves as a guidance in term of belief, moral conduct and practical rulings
or law.
The common principle of moral values In Islamic Commercial Transaction include honesty or Amanah in all statements, warranties and representations, tolerance in terms of bargaining where the parties are encouraged to be considerate to each other’s condition, and requirement as well as circumstance, timeliness in the payment of debt or delivery of an asset and mutual revocation of a contract on request by one party if he find himself uncomfortable with the outcome of the transaction.
As an example moral values have been incorporated as a legal requirement in some specific contracts such as Murabahah or mark up financing or Amanah / honesty.
