Download - 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