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Glossary
No
Term
Definition
1
'Aqd
Contract
2
Bai'
Sale
3
Bai' Bithaman Ajil
A contract of sale and purchase of an asset in which the payment of price is deferred and paid in installment within an agreed period of time. The selling price includes profit
4
Bai' Dayn
Sale of debt that is created under Shariah compliant business activities
5
Bai’ ‘Inah

A contract of sale and purchase of an asset whereby the seller sells to buyer in cash and subsequently buys back the asset at a marked up deferred price

A contract of sale and purchase of an asset whereby the seller sells to buyer at a deferred price and subsequently buys back at a lower cash price
6
Bai' Ma'dum
Buying and selling something that does not exist
7
Bai' Mua'toh
A contract of sale and purchase of an asset in which the contracting parties agreed on the exchange of the asset and the price without verbal or written ijab and qabul
8
Bai' Muzayadah
Sale by auction
9
Bai' Salam
Refers to an agreement whereby payment is made immediately while the goods are delivered at an agreed later date. It is equivalent to an advance payment
10
Bai' Sarf
Refers the buying and selling of foreign currencies
11
Dalil
Evidence, indicative legal text
12
Dayn
Debt
13
Dharurah
Necessity
14
Fatwa
Decree, religious edict from a qualified scholar
15
Fiqh Muamalat
Islamic Commercial Law
16
Fuqaha'
Islamic jurist
17
Gharar
Element of uncertainty and/or deceit
18
Hadith
Prophetic tradition
19
Halal
Lawful
20
Haq
Right
21
Hawalah
Debt assignment contract
22
Hibah
Gift. An act of transferring of ownership of an asset or usufruct without an exchange of counter value during the lifetime of the transferor
23
Hukm
Shariah ruling
24
Ibra'
Rebate. Waiving partially or totally a right to claim a debt
25
Ijarah
Leasing contract. A contract between a lessor and a lessee in which the lessor being the owner of the property allows the lessee to enjoy the usufructs of the property at agreed terms on the rental and period of lease
26
Ijarah Thumma al-Bai'
A contract of lease which subsequently followed by a sale contract
27
Ijma'
Consensus of Islamic scholars and jurists
28
Ijtihad
Reasoning by qualified scholars to obtain legal ruling from the sources of the Shariah
29
'Illah
Cause
30
Istihsan
Juristic preference, disregarding a hukm backed by a dalil and supported by another
hukm that is sounder
31
Istisna'
Sale and purchase by order
32
Jahalah
Ignorance or lack of knowledge
33
Kafalah
A contract of guarantee in which one party guarantees the fulfillment of a claim or performance of an obligation which is due to another party in a case of default. Synonim: Dhaman
34
Mal
Asset or property
35
Maslahah
Consideration of public interests
36
Mazhab
School of thought
37
Muamalah (singular) / Muamalat (plural)
Transaction(s)
38
Mudharabah
A partnership in profit whereby one party provides capital (rabb al mal) and the other party provides labour (mudharib)
39
Muqasah
Settlement of debt by set off
40
Murabahah
Cost plus profit sale
41
Musyarakah
Partnership
42
Musyarakah Mutanaqisah
A form of partnership in which one of the partners promises to buy the equity share of the other partner gradually until the title to the asset is completely transferred to him
43
Nas
Explicit legal text
44
Qabd
Taking possession and having control of purchased asset
45
Qiyas
Analogy
46
Qardh
Islamic loan
47
Rahn
Pledge or Collateral
48
Riba
Usury
49
Sadd Zari'ah
Blocking the means to something (evil)
50
Sahibul Mal
Capital Provider
51
Sahih
Valid or authentic
52
Sorf
Contract of currency exchange
53
Sukuk
Financial notes/documents whose value is backed by certain assets
54
Ta'widh
Compensation charged to a debtor for late payment
55
Tawarruq
An arrangement that involves a purchase of an asset based on Musawamah or Murabahah and a subsequently sale of the same asset to a third party in order to gain cash money
56
Ujrah
Service fee
57
Ulama'
Islamic scholars
58
'Urbun
Earnest money, down payment
59
Urf
Customary practices
60
'Uqud mu'awadat
Exchange contracts
61
Wa'd
Promise
62
Wa'd Mulzim
Binding promise
63
Wadi'ah yad Dhamanah
A guaranteed safe keeping contract
64
Wakalah
A contract where a party authorises another party to act on behalf of the former as long
as he is alive

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