Part 1 : Classification of Shari’ah Contracts

Shari’ah contract are divided into several categories with regard to the purpose for which the contracts are entered into. Each category differs from one to another mainly from the perspective of the legal purpose intended by the lawgiver resulting in the different legal effects of the contracts such as the transfer of ownership, risk-taking and profit distribution.

In fact, the basic conditions and requirements of the contracts  also differ from one to the other due to differences in the purpose and nature of the contracts. Hence, these classifications are significant when determining the rules and conditions which must be completely met to make the contracts valid and enforceable, and it turn, all the legal effects of the contract will take effect. The classifications are discussed in the following sub-sections.

  1. Exchange-based Contracts
  2. Charity-based Contracts
  3. Waiving Contracts
  4. Partnership Contracts



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