Definition of Gharar:
Literally: Gharar means risk, deceit, or hazard. Taghrir is the verbal noun of Gharar. Legitimate definition: Ibn Hazm said, Gharar in sales occurs when the purchaser does not know what he has bought and the seller does not know what he has sold.
Al-Sarkhasy: One of the most famous jurists of Hanafi school said:" Gharar occurs when consequences are concealed."
Al-Zailii: A famous jurist of the same school said' "Gharar occurs when consequences are unknown and when it is not certain whether something will take place or not."
Ibn Abdinsaid," Gharar is uncertainty over the existence of sold object.
Ibn –Taymiya said, "It occurs when the sold object is undeliverable.
وعن ابن عمر رضى الله عنهما قال – ابتعت زيتا فى السوق ( أى اشتريته ) فلما استوجبته لقينى رجل فأعطانى فيه ر بحا حسناً, فأردت أن أضرب على يد الرجل ( بما يفيد القبول ) فإذا برجل يأخذ بزراعى من خلفى, فإذا هو زيد ابن ثابت فقال لاتبعه حيث ابتعته حتى تحوزه الى رحالك.
Types of gharar and examples:
ومن أمثلة بيع الغرر : بيع السمك فى الماء والطير فى الهواء والأجنة فى بطون الأمهات والعبد الآبق والبعير الشارد واللبن فى الضرع وعسب الفحل أو بيع المضامين والملاقيح .
Selling fish in water( before it has been caught), birds in the air, fetus in the wombs of their mothers ( cattle's females), unripe fruits, grains before becoming hard, milk in the udders, wool on the back of animals and sheep, absent sale, two Sales in one, down payment, what is hidden underground or beneath the earth, the fugitive slave, the straggling camel and selling what is not in one's possession or undeliverable and non-
1- Contracting on a non-existent object
The majority of the Islamic jurists have absolutely banned the sale of non-existent object because it involves Gharar element. The banning here means that goods not to be sold before its possession. When Hakim Ibn Hozam asked Allah's Apostle saying: "some people ask me to sell something which is not in my possession; I go to the market and buy it. Allah's Apostle said," does not sell what is not in your possession".
2 – Prohibition of selling fruits until it
Starts to ripen.
Yahia related on the authority of Malik, on the authority of ibn Omar, that the messenger of Allah (pbuh) forbade selling fruit until it had started to ripen. He forbade the transaction to both the buyer and the seller. (Agreed upon)
3 - Two Sales in one (double Sale)
A double sale is among the prohibited sales.
Abu Hurairah narrated that the messenger of Allah (pbuh) said," Whosever sells two sales in one, will have the worst of them or riba.
Two sales in one have been interpreted as follows:
A – It is to sell for two prices, one for immediate sale and the other for selling on credit. The later price is higher for delaying payment to a future date.
B – It is to stipulate in a sale contract another contract. For example you say I am willing to sell you this building for such a price on condition that you sell me your car.
C – To sell two assets for a total price, not limiting the price of each. If you have to return one of them for a defect, there will be a problem. That is the price of the returned asset which is unknown to the purchaser. This will certainly to dispute and litigation.
4 -Down payment
"Arboun sale" occurs when a person buys something and pays a sum of money in advance to the seller. If the transaction is completed, the money paid by him is
Considered a part of the price, and if not nothing to be repaid to the buyer who loses all what he has paid. This transaction is prohibited in Islam because it involves devouring the property of other people falsely.
Selling fetus in the wombs 5 -
Of the cattle
The Messenger of Allah prohibited buying or selling what is still in the wombs of the cattle until they give birth.
The Apostle of Allah forbade the sale of the off-spring of the she-came which is still in...
Economics 1 Assignment
Name: Shaun Neo Wei Qiang
Student CT NO. : CT0209608
Date : 18th April 2014
Module : Economics 1
Lecturer : Mr Wong Hean Hoo
1) Introduction 2
2) Relating to the Article – Inflation 3
3) Some of the causes for inflation 4
4) Managing inflation 5
5) Conclusion 6
6) Biblology 7
7) Actual Article Selected 8
The article I chose Is from Today Online(with approval from Mr. Wong), which is heavily categorized under inflation .Reasons for choosing article due to that its related to present findings and forecast of the general economy. MAS touches on the housing, labor markets, wage pressures and Inflation forecasts.
Economic Terms of Inflation
Inflation can be defined as a continual increase in prices for goods which happens over a period of several months usually. Whenever inflation strikes, the purchasing power of consumers declines and the ability to purchase goods drops. This means that during a period of Inflation, the $X of money you spend only allows you to purchase a smaller portion of what you used to be able to purchase (full portion) before inflation. It can also be deemed as money losing its value overtime. Comparison of the difference in CPI(Consumer Price Index) is also vital. CPI is made up 6,500 of goods and services pertaining to general items or services...
...IslamicEconomicsEconomics studies are devoted with the economical behavior of individuals and societies, for
instance production, consumption, saving, good exchange and so on. Every nation is supposed to
regulate the production of goods and services as demanded by the people, consumers, thus any
economic system needs to answer four main questions:
1- What to produce of goods and services?
2- How to produce these goods and services?
3- Who to produce to these goods and services?
4- What will be the rate of economic growth?
Economic growth is essential in order to be able to provide high living standards to the people
affording to provide more products, the faster the rate of economic growth the better the living
standards are going to be. The four main production resources are:
1- Natural resources
Every economic system aims to achieve a better utilization of these resources which leads the
way to a greater economic growth providing a balanced system and better living standards
through equal division of wealth among different social sectors.
Towards the end of the 20th century, a new terminology was raised by muslim scholars, although
theories ages back to the early days of Islam, yet the term IslamicEconomics was only...
• Objectives of IslamicEconomics
o Right of Property p. 3
o The problem if equality p. 3-4
o Social Justice p. 4
• Characteristics of IslamicEconomics
o Production of Wealth p.5
o Distribution of Wealth p.5
o Law of Demand and Supply p.5
o Halal and Haram p.5
• Conclusion p.6
• References p.7
The basis of Islamiceconomics is enshrined in the spiritual norms of Islam. Unlike the modern economic systems which are based on the mundane philosophy, the Islamiceconomic system is directly guided by Allah...
...THE NATURE OF RESOURCE COST STRUCTURE AND THE PRACTICAL SIGNIFICANCE OF DIFFERENT COSTS
2.2 THE FACTORS INFLUENCING OPTIMUM SIZE AND THE SIGNIFICANCE OF DEMAND AND SUPPLY RELATIONSHIPS
2.3 UNDERSTANDING OF THE RELEVANCE AND LIMITATIONS OF ECONOMIC THEORY TO MANAGE DECISIONS
From the economic perspective, there are a full range of wants from individuals, firms and government but there is only a few number of resources or factors of production such as land, labour, capital and enterprise. The raw material will come from land, taking the example of oil, gas. The labour relates to the individuals able to work. The capital covers machinery, computers, offices or shops for retail people. Enterprise will bring all of these factors together and allow them to produce goods and services in order to make a profit. This individual report will be identifying the nature of resource cost structure and the practical significance of different cost. It will also explain the factors influencing optimum size and the significance of demand and supply relationships. It will finally demonstrate an understanding of the relevance and limitations of economic theory to management decisions.
2. MAIN BODY:
2.1 ECONOMIC PERSPECTIVE IN ORDER TO RUN THE COMPANY EFFICIENTLY:
Considering an example of project of creation of a manufacturing company based in the UK, the resources needed for the...
...Selected Text for
Institute of Business Management
What is Fiqh?
Fiqh is the understanding and comprehending of the object of nusoos (text). This is something which Allah Ta'ala had bestowed the pious predecessors with. Imam Abu Hanifah, Imam Shaafi (rahmatullah alaihima), etc. were Imams because of their deep understanding of this knowledge. All the Aimmah-e-Mujtahiddeen excels in this quality and field of knowledge. None (in present times) can ever match them. The question of who is the best of them all should never arise. This discussion should never emerge from our mouths. We are not qualified to grade the Aimmah-e-Mujtahiddeen, because it is beyond our limitations. Secondly, we do not know the proper limits and in lauding the one we are bound to degrade the others.
The Definition of Fiqh
Imam Sahib (rahmatullah alayh) has defined Fiqh as follows: “The recognition of the soul (insofar as its objective in life and its journey to Aakhirah).” This is a general definition which encompasses both the external (zaahiri) and internal (baatini). What is then the difference between tasawwuf and fiqh? The predecessors used to combine fiqh and tasawwuf.
Amongst the salf, fiqh was not only the knowledge of the zaahiri (external factors), in fact, it was the combination of both the zaahiri and baatini...
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
the social science that studies economic activity to gain an understanding of the processes that govern the production, distribution and consumption of goods and services in an exchange economy.
SCARCITY: THE NEED TO CHOOSE
Scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs. A common misconception on scarcity is that an item has to be important for it to be scarce. However, this is not true, for something to be scarce, it has to be hard to obtain, hard to create, or both. Simply put, the production cost of something determines if it is scarce or not. For example, although air is more important to us than diamonds, it is cheaper simply because the production cost of air is zero. Diamonds on the other hand have a high production cost. They have to be found and processed, both which require a lot of money. Additionally, scarcity implies that not all of society's goals can be pursued at the same time;trade-offs are made of one good against others.
The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources...
Managerial Economics Final Project
Fajwa’s Apparel Outlets
Iqra Fayyaz (10223004)
Malik Usman Khan (10223001)
Sufyan Adil (10223024)
Mohd. Salman (08110104)
Instructor: Dr. Tasneem Akhtar
GIFT Business School
In the name of ALLHA ALMIGHITY the lord of the world who has bestowed us with abilities and blessed with knowledge so that we can make best of opportunities provide to us. First of all we are indebted toward ALLHA ALMIGHTY who has created us and made capable enough to with stand in the competitive world.
If words could pay gratitude then we would like to pay our esteem gratitude to our most respected Dr. Tasneem Akhtar for assigning us this project of Managerial Economics. Throughout the course period he has been extremely cooperated with us and guided us at every single step he has been very encouraging and kind to us.
At the end we just want to thanks to our families, because they tolerated us when we don’t able to give time to them and become one of the main reasons of cancelation of many outdoor trips.
TABLE OF CONTENTS
Fajwa’s business profile
Importance of study
Long run strategy...
...rate in south Africa over the past five years has been fairly unstable, It is can be seen from graph from the decreasing and increasing trends over the quarters. South Africa experienced a rapidly increasing inflation rate in 2008, the inflation rate percentage was in the range of 11.5%, in 2009, the inflation rate decreased to 7.1%,in 2010 the average was 4,3% which indicates that the economy was doing well as there was a major drop in the inflation percentage but there was an increase in 2011 and 2012 with the ranking of 5.0% and 5.6 % respectively.
b) Explanation of the trends identified is as follows:
The upwards trends as can be seen from the graph(year 2008-2009) represents an increase of inflation and they can be influenced by the economic events in the country such as excess money growth and price increase in the economy. The price increase is triggered by an increase in international oil prices, a drop in exchange rate nationwide, excessive salary and wage hikes, or an increase in food prices caused by a drought. (South African Reserve Bank, how to fight inflation, fact sheet 3,p2).
Long periods of high inflation are often the result of lax monetary policy. If the money supply grows too big relative to the size of an economy, its purchasing power falls and prices rise. This relationship
between the money supply and the size of the economy is called the quantity theory of money. Pressures on the supply or demand side of the economy can also...