Islamic Finance Flashcards

Vocabulary flashcards related to Islamic Finance based on lecture notes.

Mu'amalat ( معاملات )

In Islamic jurisprudence (fiqh), mu'amalat refers to transactions and acts aimed at fulfilling human needs, such as sale ( بيع ), suretyship ( كفالة ), and transfer of debt ( حوالة ).

ʿIbadat (عبادات)

Acts of worship that involve pure devotion without any direct worldly benefit.

Māl (المال)

Wealth; includes everything that can be possessed and owned, whether tangible (material) or intangible (benefit).

Muqawwam Wealth (مال متقوم)

Lawful wealth; property in human possession that Islamic law permits using (e.g., houses, cars, food, clothing, books).

Non-Muqawwam Wealth (مال غير متقوم)

Unlawful wealth; property not physically possessed or not legally permied to use (e.g., birds in the sky, underground minerals, alcohol and pigs for Muslims).

ʿAqār (عقار)

Immovable property (e.g., houses, land).

Manqūl (منقول)

Movable property (e.g., goods, animals).

Mithlī (مثلي)

Fungible; has an equivalent in the market with no relevant difference.

Qīmī (قيمي)

Non-Fungible; no exact equivalent or large variation (e.g., houses, animals).

Istikhdāmī (استخدامي)

Usable; can be used repeatedly without being consumed (e.g., cars, buildings) — Durable Goods.

Istihlākī (استهلاكي)

Consumable; Used once and its form is gone (e.g., food, fuel) — Nondurable Goods.

Fiqh (فقه)

Linguiscally: Understanding and comprehension. Technically: Knowledge of practical Shariah rulings, acquired through detailed evidence.

Riba (ربا)

Usury; Riba al-faḍl (inequality in money-for-money trade) and Riba al-nasīʾah (interest for me delay).

Milk (الملك)

Ownership; a legal relaonship between a person and property that allows the person to use and dispose of it, unless restricted by a legimate legal reason.

Ijab (إيجاب)

Offer; a primary component of a contract.

Qabul (قبول)

Acceptance; a primary component of a contract.

Shufʿa (شفعة)

Preemption; applies to immovable property, not movable (with few exceptions).

Tadlees (تدليس)

Fraud; using decepve methods to mislead a contracng party into making a decision based on a mistake.

Faskh (فسخ)

Cancellation of Contract; can be mandatory, optional, or judicial.

Iqala (إقالة)

A special form of cancellation, where both parties reverse the contract and return what was exchanged (e.g., the buyer returns the item, and the seller returns the price).

Ḥalāl (حلال)

Lawful and pure.

Ḥarām (حرام)

Unlawful and impure.

Al-māliyya (المالية)

Related to wealth (māl).

Gharar (غرر)

Excessive Uncertainty; Sales that are uncertain or involve significant risk or speculation.

Bay' al-Kali' bi al-Kali' (بيع الكالي بالكالي)

Sale of Debt on Credit: Selling a debt for another debt, where the debt is deferred in both cases.

Najis (نجس)

Impure or Contaminated Goods: Impure items like alcohol, pork, dead animals, and blood, or items contaminated with impurity that cannot be purified, like oil or honey tainted with filth.

Al-Ma'doom (المعدوم)

Non-Existent or Risky Goods: Sale of unborn animals (e.g., from male or female animals) or the sale of future products like offspring (e.g., the offspring of offspring).

Al-Ma'jooz At-Tasleem (المعجوز التسليم)

Goods Impossible to Deliver; Sale of birds in the air, fish in the water, etc.

Bay' al-Majhool (بيع المجهول)

Sale of the Unknown; Selling goods with unknown qualities, qualities, or prices.

Ruyah (رؤية)

Viewing; If the buyer purchases something without seeing it, they have the option to cancel the contract after seeing it.

Majlis (مجلس)

Meeting; Both parties have the right to cancel the contract as long as they have not parted

Ghabn (غبن)

Loss; If there is an imbalance between the price and value, either party can cancel the contract if they were unaware of the price discrepancy.

Khilaf fi al-Thaman (خلاف في الثمن)

Disagreement Over Price: If the parties disagree regarding the price, both have the option to cancel the contract unless both parties swear an oath.

Ayb (عيب)

Defect; If a product has a defect, the seller must disclose it to the buyer.

Khilaf fi al-Sifah (خلاف في الصفة)

Disagreement Over the Description; If the product does not match the agreed-upon description or what was shown to the buyer, they can cancel the contract after both parties swear an oath.