Ingredients of a valid contract in Islamic law
1) Introduction
Generally contract forms when one person offers and another person accepts it. Contract is A legal agreement between the parties and a valid contract is enforceable by the law according to the rules that prevail. As the safety of property or ownership is a legal right of the people and the state plays a pivotal role in preventing transactions among people in the shape of a contract
2) Definition
An agreement that creates an Obligation and is enforceable by law. The basic element of an agreement is the mutual consent of the parties
3) Literal and legal meaning meaning
It means “Tie” and “Knot”. Legally it means any statement that legally binds the parties to fulfill an obligation to do something or not to do something in a legal way
4) Importance of contract according to Quran and Sunnah
The following verse of the Holy Quran shows the importance of the contract. The verse is as under
As Quran Says:
“O YE WHO BELIEVE FULFILL YOUR AGREEMENTS”
As Hadith Says:
“HE WHO HAS NO RESPECT FOR KEEPING PROMISES, DOES NOT POSSESS DEEN”
5) Formation of Contract
The contract is a branch of civil law. ... A contract arises when all the parties agree that there is an agreement. Formation of a contract generally requires an offer, acceptance, consideration, and mutual consent to be bound
6) Essentials of contract in Muhammadan Law
Following are the essentials of a contract
1) Plurality of Parties
The contract requires two parties at least because it is not possible without two parties
One person can’t create a valid contract
2) Capacity to enter into the contract
Parties must have the capacity to enter into the contract
They must be Sane,
Must be Major,
Must not be lunatic etc.
3) Legal relation
The contract must establish legal relations between the parties. The contract must legally bound the parties to fulfill their agreement conditions
4) Legal Contract
Contract must be legal or lawful it should not be contrary to Islamic legal law as well should not be contrary to public policy
5) Free Consent
Consent of the parties must be genuine it has not been taken by undue influence or fraud or illegal pressure etc
6) Offer and acceptance
Offer and acceptance are the major things of contract
One party makes a contract and the other party accepts it
Example:
An offer to sell his car to B
B accepts his offer. It is a contract
i. Conditions for offer and acceptance
The following are conditions for the offer and acceptance
a) Conformity of proposal and acceptance
If there is any conflict between offer and acceptance in this case it would not be a valid contract
Example:
A says to B. I have sold this car to you for 100. B replies I have accepted it for
8000. This is not a valid acceptance. There is no contract
b) Must be in the same session
Offer and acceptance should be at the same time. Otherwise, contract can’t be made
Example:
A says to B, I want to sell my house to you. B says nothing and leaves the place.
The offer comes to and ends, B can’t accept it later
c) Acceptance before the termination of the offer
Acceptance should be, before the termination of the offer. Otherwise, contact
can’t be made
7) Mahall al Aqd (Subject matter of Contract)
Mahall Al Aqd is the thing for which the agreement has been made. It is the same as the term
Consideration in English Law
Conditions of Mahall Al Aqd(Thing)
Following are the conditions of Mahall al Aqd
- Thing must be available at the time of contract
- Thing must be deliverable at the time of contract
- Must be in the notice of the parties
8) Fitness of Mahall
If the subject matter does not fit according to the prescription in this case contract will be cancelled altogether
7) Conclusion
The law of contract is similar to Western law. The major factor is to establish a legal relationship between the parties. It is the most frequent mode of acquisition of ownership