GROUP MEMBERS:

1. NIK NOR HIDAYAH BINTI NIK YUSOFF 1150390

2. SITI NURUL HASANAH BINTI IBRAHIM 1150392
3. NURUL IZZATY BINTI KAMARUL BAHRIN 1150393
4. SITI NUR AMIRAH BINTI MOHD ZAINUDDIN 1150401
5. JAMILAH HUSNA BINTI HAJI MOHD AFFANDY 1151584

CHAPTER 7: BUSINESS CONTRACTS IN 4PM- 7PM

FST-BK 6.3
ISLAM GROUP 5
INTRODUCTION
Doing business a practice that will be rewarded by Allah.

7.1 Sales 7.2 Contract 7.3 Contract 7.4 Contract

Terms and based on based on based on
Types of Aqad Aqad Aqad
khiyar Amanah Tabaruat Musawamah
PILLARS (ARKAN) IN SALES CONTRACT

BUYER SELLER GOODS SIGHAH

1. BUYER & SELLER’S TERMS
 Both party must willingly transact in this transaction without any force of selling
2. GOODS TERMS
The goods are legally owned by the seller who is in the contract.
- The goods must be must be given to the buyer on times. If there is any changes in
contract, the buyer will be given the right of khiyar.
3. PRICE TERMS
The sales price must be indicated during “akad”
4. SIGHAH TERMS
- “Ijab” is the first step in a contract before “Qabul”.
- “Ijab & Qabul” can be done verbally (Bil Kalam), written (Bil Kitabah), third party,
- sign language and action.

SALES CONDITION
CONTRACT CEREMONY (MAJLIS AL-AQDU)

1.Both 2. The agreement

4. The 1st party
must not withdraw
3. Not to have a
party must must be indicated party who show the agreement
clearly ( written unwillingness before the 2nd
be at the contract) during contract. party accepts the
offer.
ceremony

TYPES OF CONTRACT
o Aqdul Amanah
A contract that exist from an agreement
without bargaining process between both
parties before signing the contract.
o Aqdul Musawamah (The Bargaining Contract)
Contract that exists between both parties through an
agreement after the bargaining process. Also called as
bargaining contracts.
 Al Bai’ - Sales Contract
 Al Bai’ Baithaman Ajil – Deferred Payment Sale
 Al Ijarah - Hire Purchase
 Ar-Rahnu – Collateralized debt (pawn broking)
 Ar-Murabahah – Cost-plus sale (financing)
 Al-Musharakah – Partnership
 Al-Wadiah – Safe Custody
 Al Bai’ Dayn – Sales of Debt
 Bai’ Inah – Two parties in sales for cash
 Al Wakalah – Agency
 Al-Sarf – Exchange for foreign currency
TYPE OF CONTRACT OF PAYMENT OR NON-PAYMENT

Contract Mua’wadah
Contract involve with payment.
Example: - Contract of Sales,
- Leasing Contract,
Contract al-Tabaru’at
- Wages Contract (al-Ujr).
• Contract which not involve with
payment.
Example: - alhibah
- al-qardhu hassan
- at-tabaruat al-amah
 KHIYAR
Khiyar rule is to satisfy the interests of business transactions according to Islamic laws.
The main aim is to benefits both parties and to protect the from possible danger of harming
their business future.

Khiyar Majlis Khiyar Syart Khiyar Aib

Khiyar Ta’yin Khiyar Rukyah

 A contract between a buyer and seller can be discontinued
if it is cancelled through “ibtal”, ended through
“fasakh”,death of one of the party in contract and
suspended the contract due to not fulfilling the contract
condition.
 “Fasakh” is the process of discontinuing or ending a
contract which is actually valid and a cancellation of a
contract is when the contract is invalid from the beginning
due to the condition not as per Islamic perspectives.

DISCONTINUING THE CONTRACT

DISCONTINUING THE CONTRACT THROUGH
FASAKH
A contract can be discontinued due to the certain circumstances.
Ended due to damage or desecration of contract.
Ended due to Khiyar
Ended(fasakh) due to not performing the contract.
Ended due to end of contract tenor( the length of time until a
loan is due)
Cancel or the contract ended due to death of one or both party.
BUSINESS ETIQUETTE AND TERMINATING
A CONTRACT
1. Correct Problem

2.Contract Termination

3.Private Meeting

4.Write a letter
CONTRACT TERMINATION TERM

oContract Terms
oBreach of contract
oThree-Day Rule
oNegotiating Termination
THE EXAMPLE OF TERMINATION LETTER
CONTRACT BASED ON “ AQAD AMANAH”
 Contract based on exposing detail clearly between both
party in contract
Both party in contract must be honest in providing the
details in order to gather correct result.
There are 4 types of contract under “Aqad Amanah”:
Contract al-Murabahah also known as Deffered Lump Sum Sale .
Al-Murabahah financing is a financing facility for working capital
to purchase stocks, inventories, replacement, semi-finish goods
or raw materials. The concept is through selling goods include
profit margin as agreed by both parties. Terms: The seller need to
state the actual cost and capital to the buyer. Both parties agreed
on the profit as an additional to the actual cost.
Application Letter of Credit in al-Murabahah Principle in Bank
Islam “ al-Murabahah” financing is a facility given by Bank Islam
to finance their working capital by deferred payment. Customer is
appointed as purchasing agent for Bank Islam. The required
stocks of goods or inventory would be purchase by the customer
on behalf of the bank. Upon presentation of invoice by the
vendor, the bank will make payment direct to the vendor.
Application Letter of Credit in al-Murabahah Principle in Bank Islam (Con’t)
The bank would sell the merchandise to the customer on deferred payment
term of 30 days or other period depending on the requirement at the price
which is inclusive of the bank profit margin .On maturity date, the customer
pays the bank at the bank’s agreed selling price
Application Letter of Credit in al-Murabahah Principle in Bank Islam (Con’t)
Supplier of Goods Bank Islam Customer acting as an agent for Bank :

1. Purchasing Goods
2. Supplies goods to customer
3. Settles the purchase Price on cash basis
4. Bank Sells goods on Deferred payment basis
5. Settles at the Bank’s Selling price on maturity
Application in al-Murabahah Principle in Bank
Rakyat (Tijari Contract Financing) Tijari contract
financing provides financial assistance to the
companies to expend their business The financing
adapt using the concept of al-Bai’ Bithaman Ajil, Al-
Murabahah and Bai’ al-Inah with accordance to the
syariah law without riba. Require security for amount
above RM25k e.g: properties, shares in KLSE under
syariah counter, debenture, unit trust etc.
Contract Tauliyyah: Sales transaction
at cost price. Amanah is imortant to
the seller to show the cost price. e.g:
grand sale

Contract al-Ishrak: A contract

sharing. Partner to reveal their
details between them e.g: reveal the
actual price

Contract al-Wadziah: Sales

transaction below cost price e.g: old
stock item, clearance sale, less unit
left
HADIAH/ AL-
GIFT HIBAH WAQF SADAQAH QARDHU JU’ALAH
HASAN

CONTRACT BASED ON
“AQAD TABARRUAT”
 DIFFERENCES BETWEEN
JU’ALAH WAGES
Reward given Paid as per work done
(weekly/ monthly)

Tenor not fixed Job function clearly

mentioned with period
of time
No condition when it has to
start
Working condition
(agreement sign by
Liberated agreement/ employee)
arrangement

Agreement can’t be
cancel- breach of trust
1 Al-Bai Agreement between 2 parties
2 Bai’ Bithaman Ajil The buyer & saller can transact through credit terms.
(Deferred Instalment
Sales)
3 Musharakah (Profit & Loss Partnership between 2 parties, both parties provide
Sharing) capital towards the financing project.

4 Mudharabah (Trustee Agreement between 2 parties, 1 party to provide capital

Profit Sharing) (financier) & other provide management.

5 Bai’ Al-Inah Contract involves the sale and buy-back transaction of

assets by a seller.

CONTRACT BASED ON “AQAD

MUSAWAMMAH ”
7 Al-Wadiah Placement of goods/ deposits with another person, not the
owner for safe-keeping custody contract between the
depositor (customer) & custodian (bank).
8 Ar-Rahnu Shari’ah pawn-broking schemes provides allows individual
to acquire financing facilities using gold item & precious
stones as collateral.
 Agro Bank
 Bank Kerjasama Rakyat Malaysia Berhad
EonCap Islamic Bank
9 Bai’ Al-Istisna’ Purchase order of assets , a buyer places an order to
purchase an asset to be delivered in the future.
6 Bai’ Al-Wafa Sales agreement which buyer agrees to return the goods
at same price once agreement concluded.

CONTRACT BASED ON “AQAD

MUSAWAMMAH ”
10 Bai’ Al-Sarf A buying & selling of currencies or contract exchange
of money for money

11 Ijarah Leasing is emerging as popular techniques financing

among the Islamic banks.
Leasing is also lawful method of earning income according
to Islamic law.

CONTRACT BASED ON “AQAD

MUSAWAMMAH ”