islamic law of cotract & contract act 1872

PRESENTATION ON

ISLAMIC LAW OF CONTRACT

&CONTRACT ACT, 1872

PRESENTED BY:

Ahmad Zia ‘’LODIN’’ 3816 Mohammad Sajjad ‘’ AZAMI’’ 3809 Matiullah

3811 Habib Karim

3815

Lay Out:

Introduction To Business Law

Contract According To Islamic Law & Contract Act 1872

Elements Of Contract

Elements Of Valid Contract

Types Of Contract

Discharging Of Contract In Islamic Law & Contract Act 1872

Revocation Of Contract

Comparison Of Islamic Law & Contract Act 1872

Conclusion

Lay Out Cont…

Business law is a rule which helps us to regulate

and manage our business transactions and activities

system. It has direct relation with trade, industry and

commerce. e.g. insurance act, contract act, tax act, sale of

goods act, agency act etc.

Business Law

What is a Contract العقد?

An agreement which is legally enforceable at law is a contract.

Equivalent word for contract in Arabic is عقد

‘’ O believers! Fulfill the commitments’’ آمنواأوفوبالعقود الذین یایها

عهد(covenant) , ایمان (oaths) , میثاق (pact) , and وعد (promise).

“All contracts are agreements, But all agreements are not contracts.”

OFFER/PROPOSALایجاب

ACCEPTANCEقبول

PROMISEوعده

Elements Of Contract عقد

Offer/Proposal sec 2(a) - When one person signifies to another his willingness

to do or to abstain from doing anything.

Intention is called نیه in Arabic

Prophet ( PBUH) has said:

‘’The actions depend upon the intentions’’ بالنیات عمال اال انما

Acceptance sec 2(b) - When the person to whom the proposal is made,

signifies his assent there to , the proposal is said to be accepted.

Promise sec 2(b) - A Proposal when accepted becomes a promise. In simple

words, when an offer is accepted it becomes promise.

PROMISEE/ACCEPTOR/OFFREEPROMISOR/OFFEROR

PROMISOR PROMISEE

PROMISE

CONSIDERATION

(Something in Return)

AGREEMENT

Consideration sec 2(d) - When at the desire of the promisor, the

promisee or any other person has done or abstained from doing

something.

Agreement sec 2(e) - Every promise and set of promises forming the

consideration for each other.

Contract sec 2(h) - An agreement enforceable by Law is a contract.

AGREEMENT ENFORCEABLE BY LAW CONTRACT

PROPOSAL

PROMISE

CONSIDERATION

AGREEMENT

LEGALLY ENFORCEABLE

CONTRACT

VOIDABLE AGREEME

NT

LEGALLY NOT ENFORCEABLE

VOID AGREEMENT

ELEMENTS OF A VALID CONTRACT

CONSIDERATION

AGREEMENTREALITY OF CONSENT

CAPACITY

LEGALITY

BARGAINED FOR

ACCEPTANCE

LEGAL DETRIMENT/

LAWFUL

OFFER SUBJECT MATTER

OBJECTIVEnot valid• FRAUD• MISREPRESENTATION• UNDUE INFLUENCE• MUTUAL MISTAKE

not valid• INFANTS• MENTAL• DRUNKARDS• CORPORATIONS

WRITING

Elements

Legal relationship

Two parties

•Express contract•Implied contract

ON THE BASIS OF CREATION/FORMATION

•Valid contract• Void contract• Voidable contract• Unenforceable contract•Illegal contract

ON THE BASIS OF VALIDITY/ENFORCEABILITY

•Executed contract•Executory contract

ON THE BASIS OF EXECUTION/PERFORMANCE

•Bilateral contract•Unilateral contract

ON THE BASIS OF LIABILITY

TYPES OF CONTRACT

Written or spoken

No use of word

Both side perfomed

Still in the process

Need acceptance

No need acceptance, gift

Bilateral & Unilateral

Bilateral contracts• A promise by one party in exchanged for a promise by another

party• A one to one contract

OfferorThe person who make the offer

OffereeThe person to whom the contract was made

Example : Sale of goods contract• The Buyer promises to pay the price• The Seller promises to deliver the goods

Unilateral contracts

• A promise by one party in exchanged for an action by another party

• A one to all contract

1 Offeror Many Offerees

Example :X promises a reward to anyone who will find his lost wallet. X bound himself to the promise, but no one is bound to search for the lost wallet. But if Y, having seen the offer, recovers the wallet and returns it, he is entitled to the reward.

Discharging of Contract According to Islamic Law & Contract Act 1872

A contract is discharged in the fallowing four ways:

BY :ایفاءالعقدPerformance

& By Accord :الصلحSatisfaction

By :الحوالهAssignment or

Delegation

By :االءقافهRescission &

Release

One of the party assign his duty to the third

party

One party relieves the other party of his duty

voluntarily

Revocation Of The Contracts خیارات

Five greater kinds of خیارات

المجلس خیار الرویه خیار الشرط خیار العیب خیار / التد التغریر خیارلیس

This is the option of

stipulation

This is called the option of

inspection

Means the Revocation

of a Session

At the option of

Misrepresent-ation & the

Hazard

This is the option of

defect

Comparison of Islamic Law VS Contract Act 1872

Islamic Law Of Contract Contract Act 1872

Interest: prohibited in Islamic Law of contract.

Interest: Not prohibited in Contract Act 1872

Marriage & Divorce: Lawful in Islamic Law of Contract

Marriage & Divorce : Not mentioned

Contract & Sell at the time of Prayer: Prohibited

Contract & Sell at the time of Prayer: Not mentioned

Conclusion

The contract act illustrates elements that need to be fulfilled for a valid contract.

The Islamic law of contract has detailed provisions to ensure viable business transactions between the companies.

THANK YOU HAVE A FABULOUS DAY

End