THE PROMISE (WA’D) IN ISLAMIC FINANCE13 November 2019 Azahari
Islam considers the property of people as sacred and inviolable as their life and honour. To ensure this, it forbids the unlawful devouring of others’ property by way of theft, embezzlement, usurpation, bribery, cheating and all other unlawful means of acquiring wealth. These proscriptions are in addition to the main prohibitions like Riba’, Gharar and Qimar, which are considered major causes for usurpation of others’ property. In addition, different transactions have different features that need to conform to the tenets of the Shari’ah. Contracts that do not conform to these tenets or that involve any of the above prohibited elements are regarded as invalid. As Islamic banks and financial institutions are dealing in goods by entering into contracts like sale, leasing, partnership, suretyship, agency, assignment of debt, mortgages, etc. it is worthwhile discussing in brief the overall framework of the Islamic law of contracts to ascertain the permissibility/validity or nonvalidity of their operations.