TERMS | MEANING |
Al-ijarah thumma al-bai` |
Lease contract followed by ownership of asset through a sale contract |
Aqd |
Contract |
Bai` |
Sale |
Bai` `inah |
An arrangement that involves sale of an asset to the purchaser on a deferred basis and subsequently purchase of the asset at a cash price lower than the deferred sale price or vice versa and which complies with the specific requirements of bai` `inah |
Bai` al-usul bi al-khasm |
Sale of asset at discount |
Bai` bithaman ajil |
Sale contract based on deferred payment at certain price |
Bai` dayn |
Sale of debt |
Bai` salam |
Sale contract based on order of certain asset with certain specifications. Full payment is made in cash at the time of conclusion of the contract whereas the delivery of the asset is deferred to a specified time |
Bai` wadhi`ah |
Sale contract with a price lower than acquisition cost |
Bai` wafa |
Sale with a right in the seller to repurchase the property by refunding the purchase price |
Bai’ sarf |
Sale of currency |
Bai’ muzayadah |
Sale contract based on bidding or auction |
Dalil |
Evidence, indicative legal text |
Dhaman |
Guarantee |
Dharar |
Harm |
Dhawabit |
Guidelines |
Faraid |
The knowledge or rules on estate distribution according to Islamic principles |
Fatwa |
Decree, religious edict from a qualified scholar |
Fiqh muamalat |
Islamic commercial law |
Fuqaha |
Islamic jurists |
Gharamah |
Penalty |
Gharar |
Uncertainty |
Ghasb |
Confiscation or unlawful seizure of property |
Hadith |
Prophetic tradition |
Hamish jiddiyyah |
Security deposit |
Hawalah |
Debt Assignment Contract |
Hibah |
Gift |
Hibah ruqba |
A gift during the lifetime of the giver or recipient of hibah with a condition that the death of a party (either the giver or recipient of hibah) is the effective condition for ownership of the property by the surviving party |
Hibah umra |
A gift during the lifetime of the recipient or giver of hibah on the condition that the property will be returned to the giver in case of death of the recipient |
Hukm |
Shariah Ruling |
Ijtihad |
Reasoning by qualified scholars to obtain legal rulings from the sources of Shariah |
Istisna` |
Sale contract by way of order for certain product with certain specifications and certain mode of delivery and payment (either in cash or deferred) |
Istisna` muwazi |
Parallel Istisna` |
Jahalah |
Ignorance or lack of knowledge |
Jumhur |
Majority |
Kafalah |
Guarantee |
Kafil |
Guarantor |
Marhun |
Charged property |
Maslahah |
Public interest |
Maysir |
Gambling |
Mudarabah |
Profit sharing contract |
Mudarib |
Entrepreneur of a mudarabah joint venture |
Murabahah |
Sale contract with a disclosure of the asset cost price and profit margin to the buyer |
Musawamah |
Sale contract without the disclosure of the asset cost price and profit margin to the buyer |
Musharakah |
Profit and loss sharing contract |
Musharakah mutanaqisah |
A contract of partnership that allows one (or more) partner(s) to give a right to gradually own his share of the asset to the remaining partners based on agreed terms |
Muqasah |
Offsetting |
Murtahin |
A party who asks for collateral |
Musharik |
Partner |
Musya` |
Jointly-owned property |
Nafaqah |
Cost of liability |
Qabadh |
Possession |
Qard |
Loan |
Qard hasan |
Benevolent Loan |
Qiyas |
Analogy |
Rabbul mal |
Capital owner/investor |
Rahin |
Chargor |
Rahn |
Pledge/Charge |
Riba |
Usury |
Sadd zari`ah |
Blocking the means to something (evil) |
Sukuk |
Islamic securities/bonds |
Ta`widh |
Compensation |
Tabarru` |
Voluntary donation/contribution |
Takaful |
A scheme which is based on the spirit of cooperation and helping each other by providing financial assistance to participants when needed and all participants mutually agree to give contribution for the said purpose |
Taklufah |
Actual cost |
Takyif fiqhi |
Fiqh adaptation |
Tanazul |
Waive of the entitlement to claim |
Tasarruf |
Dealing |
Tawarruq/commodity murabahah |
Purchasing an asset with deferred price, either on the basis of musawamah or murabahah, then selling it to a third party to obtain cash |
Ujrah |
Commission |
Wa`d |
Promise |
Wa`d mulzim |
Binding promise |
Wadi`ah |
Safe keeping contract in which a party entrusted his property to another party for safe keeping and to be returned upon request |
Wadi`ah yad amanah |
Safe keeping contract based on trust |
Wadi`ah yad dhamanah |
Safe keeping contract with guarantee |
Wakalah |
Agency contract |
Wakalah bi al-istithmar |
Agency contract for investment |
Waqaf |
A form of endowment by an owner of a property for public benefit and wellbeing which is allowed by Shariah. |
Wasi |
A person appointed to execute a will |
Zimmah |
Liability |
`Illah |
Effective Cause |
`Uqud al-muawadhat |
Contracts of exchange |
`Uqud mustajiddah |
Contemporary contracts |
`Urbun |
Down payment/deposit |
`Urf |
Customary practices |
`Iwad |
Consideration |