Islamic contract law (Aqd) refers to the principles governing agreements between parties in compliance with Shariah. Contracts ensure fairness and mutual consent in business, trade, and social dealings.
Key Aspects of Islamic Contract Law:
- Mutual Consent: Both parties must willingly agree to the terms without coercion.
- Transparency: Terms of the contract must be clear and explicit.
- Permissibility: The subject matter must be halal and lawful.
- Avoiding Riba (Usury): Transactions must be free from interest or exploitation.
Importance of Islamic Contract Law:
- Protects the rights of all parties involved.
- Ensures ethical practices in economic and social interactions.
- Strengthens trust and accountability in society.
Written by AI. A more correct, God given, explanation can be found here.