Islamic Finance For Dummies

Chapter 6

Focusing on Contracts

In This Chapter

Understanding how sharia influences Islamic contract law

Noting the sources of Islamic commercial law

Distinguishing promises and contracts

Considering how Islamic contracts are categorized

You may not realize it, but commercial contracts are a big part of your daily life. Think about buying a meal at a fast food restaurant: You hand your money to the cashier and, in return, receive the salty, greasy, delicious burger and fries you’ve been craving all day. Maybe you take public transportation, such as a metro bus: You supply the right number of coins for your destination, and the driver gives you a ticket (or just lets you on board). The same goes for buying groceries or gas, ordering a pizza, and paying for Internet access.

Any time you pay for something — whether it’s a pack of gum, a new car, shares of stocks, or a utility bill — you’re participating in a legally binding contract. If the convenience store clerk takes your money but refuses to give you the pack of gum you paid for, you have the right to challenge his behavior because ...