slideshow

The Jo’aalah Contract in Islamic Finance

Posted on 12th August 2012 by Camille Paldi,

The European University Institute, Firenze

 

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

This is a contract under which one party, the Jaa’el or bank, undertakes to pay a specified amount of money, the Jo’ol, to the other party, the Amel or contractor, for rendering a service specified in the terms of the contract.  Either party may opt to rescind the contract so long as the stipulated action under it has not been taken.  A bank may enter a Jo’aalah agreement either as an Amel or as a Jaa’el, as necessary.  In general, the right of the Amel to transfer part of the known activity to a third party under a secondary Jo’aalah, with the agreement of the other party, is reserved.

Responsibility for the preparations and purchase of materials, tools, equipment, performing a service and other essentials for carrying out the Jo’aalah may fall to either party, depending on the terms of the agreement.  If the Amel accepts this responsibility, he should, at the outset, submit an estimate of all the operational costs for the Jo’ol to the Jaa’el.

The Jo’ol may be repaid either in lump sum or at intervals, in equal or unequal installments, at fixed maturity or maturities.  Whenever the bank acts as an Amel, it is essential to obtain sufficient security from the Jaa’el to be assured of the fulfillment of commitments made; if necessary, arrangements should also be made to insure the property involved.  (This is sooo interesting, isn’t it?  Let’s thank Dr. Iraj Toutounchian for allowing me to share all of this information with you).


Posted on 12th August 2012 by Camille Paldi


Comment on this post







Twitter

    • 29th April @camille paldi
    • "Review of Profit and Loss Sharing by Dr. Muhammad Hanif (Islamabad) " by @cpaldi on @LinkedIn https://t.co/PhOaTPtW6t
    • 29th April @camille paldi
    • The Business Daily https://t.co/ChkfHDYwsZ
    • 29th April @camille paldi
    • The Business Daily by FAAIF is out! https://t.co/FT3iGYencZ
    • 29th April @camille paldi
    • The Inter-faith Daily https://t.co/T0PvzIIpsW
    • 29th April @camille paldi
    • The Inter-faith Daily is out! https://t.co/d0NPWV0JiG Stories via @virtuousjenn
    • 29th April @camille paldi
    • The Halal Daily https://t.co/Z5LdJIlBs6
    • 29th April @camille paldi
    • The Halal Daily is out! https://t.co/fFaoNN955Q Stories via @chimocamara @Sheikit_net @ZuelligHealth
    • 29th April @camille paldi
    • The Islamic Finance Daily https://t.co/fXQhfbH18O
    • 29th April @camille paldi
    • https://t.co/qZoDpT8YB0
    • 29th April @camille paldi
    • A Success Story: Clio and your Family Law Practice https://t.co/MDmq9mPSGh
    • 28th April @camille paldi
    • The Islamic Finance Daily https://t.co/fXQhfbH18O
    • 28th April @camille paldi
    • The Islamic Finance Daily is out! https://t.co/SCPhIBhsX1 Stories via @FinanceEthical @DKP_Community @IFN_news
    • 28th April @camille paldi
    • The Halal Daily https://t.co/Z5LdJIlBs6
    • 28th April @camille paldi
    • The Halal Daily is out! https://t.co/bGaw7f9Nwz Stories via @escuelahalal @BoycottViews @OCThunderWorld
    • 27th April @camille paldi
    • "Thanks Again to Dr. Muhammad Hanif, Islamabad " by @cpaldi on @LinkedIn https://t.co/mpmMvs1PzK
    • 27th April @camille paldi
    • The Islamic Finance Daily https://t.co/o456y6nefx
    • 27th April @camille paldi
    • The Islamic Finance Daily is out! https://t.co/LEdR8SATiD Stories via @Yurizk_IF @IEDCDubai @arabcashmxney
    • 27th April @camille paldi
    • The Halal Daily https://t.co/e5DsmVTheB
    • 27th April @camille paldi
    • Global Islamic Finance Update 2016 https://t.co/W5YWmkbhcQ
    • 27th April @camille paldi
    • Thank You to Dr. Muhammad Hanif, Islamabad https://t.co/jA6XYi74Wy

Articles

Review of Profit and Loss Sharing by Dr. Muhammad Hanif (Islamabad) by Camille Paldi

Review of Profit and Loss Sharing by Dr. Muhammad Hanif (Islamabad) by Camille Paldi

Review of Profit and Loss Sharing by Dr. Muhammad Hanif (Islamabad) by Camille Paldi

April 30, 2016

<...

Posted on 29th April 2016 by Camille Paldi

India and Islamic Finance Update

India and Islamic Finance Update

India and Islamic Finance Update   

By: *Camille Paldi

Posted on 9th April 2016 by Camille Paldi

Review of FAAIF Islamic Finance for Lawyers One or Two Day Program

Review of FAAIF Islamic Finance for Lawyers One or Two Day Program

See what Camille Paldi

Dubai World Analysis

Dubai World Analysis



Nakheel is a member of Dubai World and one of the UAE’s largest property developers. Dubai World is one of the largest holding companies in the w...

Posted on 2nd April 2016 by Camille 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