Contract: Promise and Debt Essay

Contract: Pledge and Debt

Promoting Contract.

Among the list of supporting agreement that used by Islamic banking institutions are: 1 ) Contract of Rahn (Pledge)

2 . Agreement of Kafalah or Dhaman (Guarantee)

a few. Contract of Wakalah (Agency)

4. Agreement of Wadiah (Safe Custody)

5. Deal of Ibraa (Rebate)

Contract Of Rahn (Pledge)

The conditions to each important elements of Rahn are as follows: a. Pledgor (customer)

n. Pledgee (eg: Islamic Bank)

3 important conditions of ‘Pledgor and Pledgee' as follows: i. They have to be capable of taking responsibility

2. They must certainly not prohibited coming from dealing with their properties iii. No coercion is applied on them

c. Obligation or right to a claim (debt)

i. A debt need to have been founded

ii. Your debt must be known

d. Pledge (property pledge)

iii. Anything that can be bought and sold may be pledge. 4. It must exist (can become perceived by sense of touch

versus. It must be of usage according to the Shariah

* It must not be too little as to be of no use

* It must not distract coming from remembering Jahve

* It should not be applied for haram purposes.

5. It must be held by the pledgor

* It should be capable penalized delivered (must be free from encumbrances) * It must be known and specific by address, description or requirements e. Agreement (offer and acceptance)

a couple of necessary circumstances:

i. A give your word becomes a concluded contract by offer plus the acceptance in the pledgor and pledge. The offer and acceptance has to be absolute in addition to definite and decisive language. ii. The acceptance need to agree with the offer.

Different features associated with the agreed property happen to be as follows: 1 . One give your word may be exchanged for another

2 . It truly is lawful to increase the debt that is certainly secured by the pledge a few. One promise can be accepted as security for two different bills from two different lender 4. A borrowed property can be used like a pledge

five. The give your word (i. at the Bank Rakyat)...