slideshow

Mosa’qaat Contract in Islamic Finance

Posted on 11th August 2012 by Camille Paldi,

 

Temple near Beirut

Thoughts from Iraj Toutounchian’s Islamic Money & Banking, Integrating Money in Capital Theory

This is a contract between the owner of a ‘tree and the like’ and an Amel, against a clear-cut share of the yield, which includes fruit, flower petals, and so on.  Again, the constituent parts of Mosa’qaat can be separated into tree, labor, yield, and time period.  The ‘tree and the like,’ which form the subject of an agreement must possess the following characteristics:

  1. The trees and plants should be such as have gone into the ground and be capable of staying in the ground for more than one year.  It then follows that vegetation and plants of a seasonal nature, which naturally last less than one year, cannot be the subject of such a contract.
  2. Non-yielding trees, which do not give fruit, cannot be the subject of a Mosa’qaat agreement unless their leaves or flowers have market value.
  3. The garden (or orchard) owner should really own the trees or interests therein, and/or should be entitled to use them.
 

The specification and boundaries of the orchard or garden should be stated in relation to the yield, as well as the type and number of trees.  If the share of the parties is fixed as a definite quantity of the yield, and/or the yield of certain trees is reserved for one of the parties, and the rest for the other party, the transaction is void.  In the same way, it is not permissible for the entire yield to go to one of the parties.  (Iraj Toutounchian)


Posted on 11th August 2012 by Camille Paldi


Comment on this post







Twitter

    • 13th February @camille paldi
    • The Business Daily https://t.co/QAmtb1Uzgb
    • 13th February @camille paldi
    • The Business Daily by FAAIF is out! https://t.co/aSxKOEmhob
    • 13th February @camille paldi
    • The Inter-faith Daily https://t.co/CElmuxouLa
    • 13th February @camille paldi
    • The Inter-faith Daily is out! https://t.co/wxm1cNEFzK Stories via @johnalexwood @DCUInterFaith
    • 13th February @camille paldi
    • The Islamic Finance Daily https://t.co/zOnlD94fth
    • 13th February @camille paldi
    • The Islamic Finance Daily is out! https://t.co/TZaV6y91If Stories via @mfat2011 @IsFinanceSpain @Islamicfinance1
    • 13th February @camille paldi
    • The Halal Daily https://t.co/PKO7Ot9kAj
    • 13th February @camille paldi
    • The Halal Daily is out! https://t.co/6NlaoqBzRR Stories via @OfficialPLN @HalalInTourism @tmotor1641
    • 12th February @camille paldi
    • https://t.co/4BvUWezoOb
    • 12th February @camille paldi
    • Register for the Africa Islamic Investment and Economic Forum, March 15, 2016 in Dubai, UAE! https://t.co/x5WmYG74mb
    • 12th February @camille paldi
    • The Business Daily https://t.co/QAmtb1Uzgb
    • 12th February @camille paldi
    • The Inter-faith Daily https://t.co/CElmuxouLa
    • 12th February @camille paldi
    • The Halal Daily https://t.co/PKO7OsRJbJ
    • 12th February @camille paldi
    • The Islamic Finance Daily https://t.co/hMHtkctXA6
    • 12th February @camille paldi
    • The Business Daily by FAAIF is out! https://t.co/b0rFEzQIVJ
    • 12th February @camille paldi
    • The Inter-faith Daily is out! https://t.co/yxxquNYdd9
    • 12th February @camille paldi
    • The Islamic Finance Daily is out! https://t.co/1YIKCNBsOh Stories via @RFIFoundation @GGRESH @nafisalam
    • 12th February @camille paldi
    • The Halal Daily is out! https://t.co/8sgtxZICCI Stories via @hdcglobal @InstitutoHalal @HalalWelt
    • 11th February @camille paldi
    • The Business Daily by FAAIF is out! https://t.co/xsDjf69Ix3
    • 11th February @camille paldi
    • The Inter-faith Daily is out! https://t.co/ItT8pBjp0s Stories via @SurreyIntrfaith @churchofireland @StMatthiasNews

Articles

Islamic Finance, Opportunities, and Challenges

Islamic Finance, Opportunities, and Challenges

Islamic Finance – Opportunities and Challenges

By Mufti Ismail Ebrahim Desai

The Islamic Financial system has witnessed considerable developments in the past four decades and is now regarded as one of the fastest growing segment of the g...

Posted on 19th January 2016 by Mufti Ismail Ebrahim Desai

Book Review for Islamic Banking: Theory and Practice (2012) by *Dr. Muhammad Hanif

Book Review for Islamic Banking: Theory and Practice (2012) by *Dr. Muhammad Hanif

Book Review for Islamic Banking: Theory and Practice (2012) by *Dr. Muhammad Hanif

 

By: Camille Paldi

 

This textbook is a masterpiece on Islamic Banking combining financial th...

Posted on 21st December 2015 by Camille Paldi

Economic Efficiency of Islamic Financial Institutions Part II

Section 4         Alternative Policy Options and Steps

 4.1      Proper Risk Management: A Necessity Posted on 13th December 2015 by Muhammad Ayub and Camille Silla Paldi

Economic Efficiency of Islamic Financial Institutions Part I

Economic Efficiency of Islamic Financial Institutions Part I

Tense Dichotomy between Shari’ah Compliance and the

Economic Goals of Islamic Finance Institutions

Muhammad Ayub and Camille Silla Paldi

Video

Find all our videos here, and also a link to our YouTube video channel so you can view our 'video of the week'

Submit

We would like you to get involved with our site. So if you want to submit Articles, Videos, Events and Call for Papers, please click the button below:

Submit

Valid XHTML 1.1 |  Valid CSS |  Web Design in Durham and Newcastle |  Copyright © 2016

* Prices are converted at USD$0.2723 per AED 1