IslamQA.org Logo

RIBA

Shafi'i Fiqh

Sale with option to Repurchase is Invalid

A man owns a plot of land that is worth (25000JDs) and wants to keep it. However, he is in dire need for (5000), so he reached an agreement with someone whereby he sells it to the latter for (5000) under the condition that he repurchases it from him later on for (7000JDs). However, that person stipulated that it must be repurchased within six months or else he won`t be obliged to offer it for sale nor sell it for the agreed price. Is this form of sale permissible?

Shafi'i Fiqh

Ruling on Selling Shopping Coupons against a Murabaha Percentage

Is it permissible to sell shopping coupons of specific amounts to members of the staff provident fund of a certain company against a certain Murabaha percentage where the members make purchases from certain stores and pay for them by installments over a maximum of one year from the date of purchasing. It is worth pointing out that the coupons allow the bearers to buy goods and can`t be exchanged with cash?

Shafi'i Fiqh

Ruling on Margin Financing

What is the ruling on lending a client an amount larger than that which he had deposited forbuying stocks at the Amman Stock Exchange; knowing that the financial intermediary (Company) charges a commission against each buy and sell activity undertaken by the client?

Shafi'i Fiqh

Guarantor isn`t Allowed to Stipulate an Addition

I work for a clearance company which pays customs charges on behalf of some clients. Actually, an additional amount (100-150JDs) is collected from clients who fail to make payment on time. We also reach an understanding with new clients whereby they can delay payment, but in return for a price higher than usual. Does this involve Riba(Usury/interest)?

Shafi'i Fiqh

Ruling when Staff Association Pays Tuition Fees on Behalf of its Members

A staff association pays tuition fees on behalf of its members through what is called "Ju`alah contract." This association concludes an agreement with some schools whereby it registers the children of its staff members, there, according to the following criteria: 1-The school grants a discount on the tuition fees to students registered through the association. 2- The association commits itself to paying all tuition fees on behalf of the students registering through it. 3-The value of the fees is collected from the salaries of the association`s staff members as one payment or by monthly installments without any increase. Moreover, the members get the full benefit of the tuition discount, even if they paid by installments, while the association receives a commission in exchange for every student it registers in the school. What is the ruling of Sharia on this?

Shafi'i Fiqh

Selling Solar Water Heating Systems through Murabaha Contract

We are a charitable organization that encourages people to use solar water heating systems through establishing a fund that gives loans to that end. This goes as follows: A provider of solar water heating systems is selected through a tender, an installing order is issued by the organization and the customer is required to pay the price of that commodity to the organization in installments where he pays the agreed upon amount in addition to a specific sum, as margin of profit in favor of the organization. What is the ruling of Sharia on this?

Shafi'i Fiqh

An Example of Istisnaa` Contract

Is it permissible for a financial institution to conclude a contract with a certain contractor, where the latter is required to deliver the finishing works of a certain building, and, at the same time, conclude a parallel Istisnaa`(Manufacture) contract with the owner of that building(Customer) against payments made in installments, knowing that the property is originally registered in the name of the customer himself?