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REVISITING THE CONCEPT OF LEGAL GUARANTEE IN ISLAMIC LAW FOR STRUCTURING ISLAMIC FINANCIAL PRODUCTS
Corresponding Author(s) : Chaibou Issoufou
Humanities & Social Sciences Reviews,
Vol. 7 No. 2 (2019): March
Abstract
Purpose of Study: In the modern Islamic financial products and services, legal guarantee is becoming increasing important in the structuring of products, particularly those used in the investments. As a result of the increasing importance of the concept of guarantee, this paper specifically revisits the conceptual analyses of legal guarantee in Islamic law with a view to providing the basis for the use of this concept in structuring relevant Shari‘ah-compliant products.
Methodology: The study adopts a comparative legal analysis of the views of classical Muslim jurists. The researchers examine the principles relating to guarantee, such as the meaning of guarantee, its authority, its pillars and conditions. Other principles include modes of guarantee and its objective. The paper also examines the principles and terms of guarantee necessitates an assessment of the effect of the guarantee contract on the contracting parties, particularly whether the guarantor has the right of recourse to the guaranteed person for a refund. The researchers adopt qualitative research methodology to analyse and examine the data. Results: It was found that although guarantee is permissible in Islamic law, it is not absolute. In fact, to make it more Islamically acceptable or Shari’ah compliant there are other terms and conditions that the contract has to fulfil especially by the guarantor, guaranteed person as well as guaranteed asset.
Results: Legal Guarantee is permissible in Islamic law to prevent harm that may happen to the traders and investors, and protect the public interest. Classical and contemporary Muslim scholars’ views are that guarantee is not limited to guarantee for debt, but extended to the guarantee for other commercial transactions like guarantee of future liability and physical punishment. Guarantee has its own pillars and conditions, which should be met in order for a guarantee contract to be a valid one. The researchers suggest to conduct empirical research in order to have a clear picture on the concept of legal guarantee for structuring Islamic financial products.
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References
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Abd al-Rahaman, b.M.b.S.a.-K., 1998. Majma‘al-anhar. Beirut: Dar al-Kutub Ata.
Abu al-Hasan, A.b.a.-Q.a.-F., 2003. Al-Iqna‘ fi Masa’il al-’Ijma. Dirasah wa Tahqiq wa Sharh, Faruq.
Abu al-Husein, M.B.a.-H.a.-Q.a.-N., 2003. Sahih Muslim. Dubita: Bisharh al-Nawawi.
Al- Kasani, A.b.b.M.u.a.-H., 2005. Bada’i ‘ al-Sana’ i fi Tartib al-Shara’i, Dabata Nashu wa al-‘ilmiyyah.
Al- Zuhaili, W., 1989. Al-Fiqh al-Islami wa Adillatuhu. Damascus :Dar al-Fikr, 5.
Al-‘Uthaimin, M.b.S.b.M., 2002. Sharh Riyad al-Salihin Min Kalami Sayid al-Adithahu, wa alaqa alaihi. Fouwad bin Siraj Abdul Ghaffar Abu Abdurahman. Beirut: Dar al- Kutub al-‘Ilmiyyah, 3.
Al-Baihaqi, A.B.A.b.a.-H.b.A., 1999. Al-Sunan al-Kubra, Tahqiq Muhammad ‘Abd al-Qadir al-Balaghah. 3rd Edn. Ciro: Al-Dar al-‘Arabiyyah Lilkitab, 2.
Al-Bukhari, M.b.I.i., 1981. Sahih al-Bukhari. Beirut: Dar al-Fikr.
Al-Nawawi, A.Z.Y.b.S.a.-D., 2000. Rawdatu al-Talibin, Haqaqahu wa Kharaja al-Nu‘man. Beirut: Dar al-Kutubu al-Ilmiyyah, 1.
Al-Sarakhsi, A.B.M.b.A.b.A.S.a.-H., 2001. Kitab al-Mabsut, 19.
Al-Shawkani, M.b.A.b.M., 2000. Fatah al-Qadir al-Jami‘ bayna Fannay al-Riwayyah.
Al-Zawi, A.-T.A., 1990. Tartib al-Qamus al-Muhit ‘ala Tariqah al-Misbah al-Munir wa Asas.
Al-Zuhaili, W., 2006. Nazariyyat al-Daman aw Ahkam al-mas’uliyyah al-Madniyyah wa al-jana’iyyah.
Anis, I., 2004. Al-Mu‘jam al-Wasit. Airo: Maktabah al-Shuruq al-Dawliyyah.
Baha, a.-D.A.a.-M.Y.b.R.b.S.a.-H.a.-S.a.-M., 1993. Dala’il al-Ahkam banking and legal practice. Ph.D. Thesis, University of Wales Aberystwyth.
Ibn al-‘Arabi, A.B.M.b.A.A.a.-A., 2003. Tafsir Ahkam al-Qur’an li ibn al-Arabi.
Ibn Hazam, A.M.A.b.A.b.s.i., 2001. Al-Muhalla Sharhu al-Mujalla Tubi‘at ala.
Ibn Hazm, A.M.A.b.A.b.S.i., 2001. Muhala, Sharh al-Mujala, Taba‘ ala al-Nusakhah
Ibn Munzur, A.a.-F.J.a.-D.M.b.M., 1990. Lisan al-‘Arab. 1st Edn., 11.
Ibn Nujaim, Z.a.-A.b.I., 1980. Al-’Ashbahu wa al-Naza’iru ‘ala al-Mudhhab Abu Hanifah
Ibn Nujaim, Z.a.-A.b.I., n.d. Al-Bahar al-Ra’iq Sharh Kanzu al-Daqa’iq. Beirut: Dar, 6.
Ibn Rushid, M.b.A.a.-Q., 1985. Bidayat al-Mujtahid wa Nihayat al-Muqtahid Ikhtisari al-Mudawwanah, Dirasah wa Tahqiq, Muhammd al-Amin walad Muhammad Salim bin al-Shaykh. 1st Edin., Dubai: Dar Ihya’ al-Turath. Law Publishing Company, 4.
Majd al-Din, M.b.Y.q.a.-F.A., 1996. Qamus al-Muhit, Tahqiq Maktab.
Mohammad, H.K., 1999. Principles of islamic jurisprudence. Malaysia: Ilmiah Publishers.
Muhammad al-Sharbini, a.-K., n.d. Al-’Iqna‘ fi Hali al- Faz Abi- Shaja. Jakarta: Dar al-Fikr, 2.
Muhammad, A.S., 1990. Daman al-‘Udwan, Cairo: Dar al-thaqafah.
Muhammad bin, A.B.b.A.a.-Q.a.-R., 2008. Mu‘jam Mukhta al-Sihah, Qirah wa Dabita wa.
Muhammad, N.a.-M., 2007. Daman al-‘Aqd fi al-Fiqh al-’Islami. Syria: Dar- al-Maktabi. Mutaqadimu li-al-Nashar wa al-Atawzi.
Okon, E.O., 2017. Climate change: Space technology and climate-resilient development in Nigeria. International Journal of Social Sciences Perspectives, 1(1): 6-19. https://doi.org/10.33094/7.2017.11.6.19 DOI: https://doi.org/10.33094/7.2017.11.6.19
Okpechi, P.A., 2018. Anxieties disorder and deviant behaviors among secondary school studies in Obubra local government area of cross river State. International Journal of Educational Technology and Learning, 3(1): 24-29. https://doi.org/10.20448/2003.31.24.29 DOI: https://doi.org/10.20448/2003.31.24.29
Önder, M., 2018. Contribution of plays and toys to children's value education. Asian Journal of Education and Training, 4(2): 146-149. https://doi.org/10.20448/journal.522.2018.42.146.149 DOI: https://doi.org/10.20448/journal.522.2018.42.146.149
Ruhi al-Ba‘labaki and Munir al-Ba‘labaki, 2004. Al-Mawrid Muzdawaj, Arabic-English - English–Arabic, 8th
Suhaimi, A.R., 2005. The classical islamic law of guarantee and its application in modern islamic Sunan ‘Abi Dawud, Ùaba‘ah Jadidah, Muqadamah wa Musahahah wa Muraqamah bi Muhammad Fuwad‘Abd al-Baqi, Tahqiq wa Ta‘aliq wa Tashih, ‘Abd al-Rahman Muhammad ‘Uthman. 2nd Edn., Beirut: Dar ihya’ al-Turath al-‘Arabi, 12.
Tyser, B.A.L.C.R., 1980. The Majallah Ahkam, al-Adliyyah and complete code on Islamic civil law, Lahore: edition. Beirut: Dar al-‘Ilm li al-Malayin.