Formation of Contract in the Internet Under Islamic Law

The use of internet as a medium of communication or the trend of cyberspace contracting has widened the scope of contract formation. As the world of electronic commerce expands there is an increasing demand for clarity in the rules which apply to the participants and their transactions. Uncertainties that exist on many legal issues arise out of the online contract such as when or where the offer and acceptance is made, when the contract is concluded, whether agreements entered into electronically are enforceable and whether the display of goods in the web is considered as offer or not etc. Under Common law itself even though there are established rules regarding the online contract there are still a few unsettled issues regarding the online contract mainly because a standard international law governing the online contract is yet to be found. This is due to the fact that online contracts revolve around cross border transactions or the contract is beyond the jurisdictions of the respective countries. Therefore there is a great need for a standard international law. Under lslamic Law there are several areas of uncertainty which will havesignificant impacts on electronic contracting according to Shariah. The main areas are the issues of Majlis Aqad (Unity of Session). This is considered as a very fundamental issue especially in the online contract which implies the non physical presence of the parties. Similarly, Khiyar (Options) which is available to parties contracting inter presente will be an issue in the online contract. In fact if certain fundamental issues in the online contract are not resolved, then the dominance entry of the principles of gharar (uncertainty) will apply which will make online contracts-in lslamic Shariah not feasible . All other relevant areas to the online contract are discussed such as the issue of capacity and the doctrine of mistake (ghalaf). Therefore the study aims to review some of these fundamental notions and the formation of online contracts not only in Shariah law but also in Common Law, to achieve an acceptable degree of certainty that will enable the practice of online contract especially in Shariah. Furthermore, it is hoped that more practical principles of law governing the online contract can be established and be made applicable to all parties to the online contrac

Islamic law of contract

This book revolves around the issues on the formation of contract under Common Law and also Islamic Law. All the elements of contract are discussed in detail in this book. The author has made a comparison on the issues between Common Law and Islamic Law to give the reader a clear understanding of the elements of contract and all other issues in contract law; for example the issue of gharar and the notion of khiyar under Islamic Law and the doctrine of mistake, both under Common Law and Islamic Law. This book is suitable for all readers, be they undergraduate and graduate students or professionals who wish to know more about contract law especially from the Islamic perspective

Humanizing education: the importance of work life balance in one’s life

Abstract Living in the demanding and uncertain world nowadays, everybody must have a secured job to put food on the table food or even to maintain a lifestyle. There are a lot of instances whereby we concentrate so much on our work, job or career that we fail to balance between career and family or other commitments which equally important to achieve the happiness or contentment not only in this world but also hereafter. This paper reflects on how important to have a work life balance by fulfilling our basic duties and responsibilities not only to our employer but also our families, community and ultimately to the God or Our Creator

Commercial law in Malaysia

This book has its origin in a compilation of lecture notes of the Commercial Law and Malaysian Business Law which are the core courses for Bachelor of Accounting and Bachelor of Business Administration students of the International Islamic University Malaysia. Its primary objective is to provide students commencing legal studies and also lay readers a general overview on the commercial legal environment in Malaysia. In particular, this book is designed to meet these specific objectives: • To equip the readers with a basic understanding of the commercial laws in Malaysia • To expose to the readers on haw to refer and apply the laws when they are involved in the commercial transactions • To study the Shari'ah principles regulating commercial transactions and compare to that of conventional dealing

Investment-Linked Takaful Plan Patronage: Evidence from Malaysia

Investment-linked Takaful is a recent innovation introduced in Malaysia. This study focuses on Investment-linked takaful plan selection in Malaysia. We have used a self-administered questionnaire to collect data from 143 respondents from the Klang Valley area. Data collected through the survey was analyzed through descriptive statistics, correlation and regression analysis. Results indicate that fee payment and benefits play a significant role in Takaful operator selection while coverage and benefits affect the investment-linked product selection in Malaysia. This study is unique as it provides empirical evidence on the investment-linked takaful investment which is limited in supply. Results provided by this study can be useful for takaful operators in designing the most appropriate investment-linked product for attracting customers. 

Customer perception towards relationship marketing practices in Takaful industry

In certain business organization, acknowledging public perception towards their business practices may give a positive impact towards the future business performance. Similarly, to ensure the sustainable of Takaful industry as an alternative Islamic insurance, getting customers’ perception towards their marketing practice is important. It is so because without effective marketing practices, the Takaful products could not reach the public with the sole purpose as was planned in the earlier stage. This research thus proposes three constructs of relationship marketing and investigates the customers’ perception regarding the Takaful agents’ relationship marketing practices. It includes their Islamic ethical behaviour, product knowledge, and information communication. To achieve these objectives, this research adopted self-administered survey questionnaire and distributed it to the Takaful customers in Klang Valley area. Result from data analysis based on SPSS version 19 regards that the public particularly Muslim in rural area not totally agreed with the relationship marketing practices of their Takaful agent. This research contributes to strengthen the Takaful industry in reaching the same level with the conventional insurance particularly their effective marketing channel

Preference toward investment-linked takaful plan: mediating role of attitude

Investment-linked products (ILPs) are the latest innovations from the Islamic finance industry that offers investors the opportunity to get protection and investment through their family takaful plan. In this paper, we focus on exploring the preference toward investment-linked Takaful plan. Based on the propositions of the theory of interpersonal behaviour and the theory of Islamic consumer behaviour, we develop a conceptual model to investigate factors that could explain the preference toward investment-linked products (ILP). We have used a structured literature review to conduct a critical review of the literature. Attitude is positioned as mediation in the developed conceptual model. The conceptual model proposed in this study is the first of its kind and contributes to the existing literature of behavioural finance

Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model

One of the significant features of Islamic banking is the elimination of riba and gharar. However many problems arise in some of Islamic banking financing instruments when they are claimed to contain significant elements of gharar thus held unacceptable in certain Muslim countries. Among these instruments are Bay al-Inah and Bay al-Dayn. Currently, Bay al-Inah is not accepted in some countries such as the Middle East countries as it is regarded as part of interest-based transaction. However, in Malaysia, Bay al-Inah has been formalised as a permissible practice and is has emerged as the most important mode of transactions that stimulates the growth of Islamic transaction in Malaysia, which finally comes across the globe to be among the most successful Muslim state in the development of Islamic Finance. On the other hand, Bay al-dayn or the sale of debt is not unanimously accepted or validated by Muslim scholars. Even though some scholars allow it in all forms and aspects, the others either disallow it entirely or allow it under certain circumstances and with certain clauses or conditions.The paper will discuss at length on both contracts and the legal implications of the presence of gharar on the validity of these contracts. The views from the jurists will be critically examined to revisit the existence of gharar especially in these two Islamic banking instruments namely bay al-dayn and bay al-inah. KEYWORDS Islamic Financial Instruments, Contracts,Gharar(Uncertainty),Bay Inah and Bay al-Dayn,Islamic Banking Product

The dominance entry of the principles of Gharar in electronic contracts

Contracts feature in all areas of our daily lives. For example, without much thought, we become party to a variety of contracts when we travel by bus or rail, purchase goods, accept services, and carry out our duties in the workplace. Contracts are so prevalent that ordinary men or women in the street do not realize the legal complexities of the transactions into which they enter. The use of Internet as a medium of communication has widened the scope for contract formation. Sales and purchase activities are conducted online using contracts either drawn up through the Internet itself or outside cyberspace. Several areas of uncertainty will have a significant impact on electronic contracting under Islamic Shari'ah law. This is a fundamental issue, especially with regard to online contracts for which the contracting parties are not physically present. In fact, if certain fundamental issues regarding online contracts are not resolved, then the dominance entry of the principles of ghārār (uncertainty) will apply, making such contracts unfeasible under Islamic Shari'ah law. Therefore, this paper aims to review what is actually meant by ghārār and how it affects the enforceability of electronic contracts under Shari'ah law. It also suggests how ghārār can be reduced or even eliminated to achieve an acceptable degree of certainty, thus enabling the practice of online contracts, particularly according to the Shari'ah