UAE Laws and Islamic Finance

Laws of the UAE and Islamic Finance

Promises in Islamic Commercial Dealings

Firenze

‘The Islamic Fiqh Academy Jeddah has made the promises in commercial dealings binding on the promisor with the following conditions:

(a) It should be one-sided promise.

(b) The promise must have caused the promise to incur some liabilities.

(c) If the promise is to purchase something, the actual sale must take place at the appointed time by the exchange of offer and acceptance.  Mere promise itself should not be taken as the concluded sale.

(d) If the promisor backs out of his promise, the court may force him either to purchase the commodity or pay actual damages to the seller.  The actual damages will include the actual monetary loss suffered by him, but will not include the opportunity cost.’

Mufti Taqi Usmani

UAE Laws and Islamic Finance

Laws of the UAE and Islamic Finance

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