Financial Contracts in Islam

What’s is a contract?

• The illegal binding of group of people that includes people making agreements according to they’re wills which are prohibited in Islam

• The legal binding of two parties that do not intent in a transaction in a manner

• The legal binding of two parties intent in a transaction in a manner that is sanctioned and permissible in Islam

• None of these

Choose the correct sentence based on the contract

• He monopolized a commodity to raise the price and control its sale among people

• He concealed from the buyer that his car had a big accident

• One of the two contractors accepted the other’s demand to dismiss sale and cancel the contract

Choose whether the below statement is lawful or unlawful based on its contract-

1. He said to him “I bought this cell phone from you by all what I have in my pocket

• Unlawful

• Lawful

• Both

• None

ALLAH has prohibited financial contract which includes

• Usury (Riba)

• Setting up a business

• Righteous act

• None of these

Choose the correct answer from the following-

1. Only one contract along the following contract is legitimate according to Sharia

• He agreed to sell pork for thousand Dirhams

• He agreed to lend him one hundred thousand Dirhams to be repaid a year later provided that he should pay 5% fine for each month’s delay

• He agreed to sell his car for fifty thousand Dirhams

• He agreed to lend his traveling father’s car without informing his father

The First consideration (according to Sharia) is divided into how many divisions?

• 2 divisions

• 4 divisions

• 3 divisions

• 6 divisions

State whether the given statement is true or false:

1. Illegal contracts are the contracts which are not prohibited by the Islamic Sharia and it entails any legal effects

• True

• False

There are also social commitments and contracts such as-

• Personal status law

• International treaties and contracts

• Financial contracts

• All of the above

Features of financial contracts in Islam

• Regulated by ethnical and faithful values

• Does not fulfill the need of society

• Islam does not attaches great respect to contracts

• None of these

In a commercial market, a buyer paid the price shown on screen to the clerk without speaking. Which kind of form of contract it Is?

• saying

• writing

• gesture or act