Glossary

 
TermDefinition
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

  • 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
  • 5

    Bai’ ‘Inah

    Buying and selling something that does not exist
    6

    Bai' Ma'dum

    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
    7

    Bai' Mua'toh

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    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. Synonym: 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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