Consumers’ Protection Under Murabahah Sale Contract

Authors

  • Mohammad Zamin Lecturer, Department of Shariah & Law Islamia College, Peshawar, KP, Pakistan.
  • Muhammad Jan Assistant Professor, Department of Shariah & Law, Islamia College Peshawar, KP, Pakistan.
  • Mehnaz Begum Lecturer, Department of Shariah & Law Islamia College, Peshawar, KP, Pakistan.
  • Rafia Naz Ali Islamia College University Peshawar
  • Maryam Qasim Assistant Professor, Department of Law, Shaheed Benazir Bhutto University, Sheringal, Dir Upper, KP, Pakistan.

DOI:

https://doi.org/10.54183/jssr.v3i2.302

Keywords:

Murabahah, Musawamah, Mark-up, Cost, Islamic Banking, Contract, Financing

Abstract

Murabahah is one of the contracts of sale of goods by a person to another under an agreement whereby the seller obliges himself to disclose to the buyer the cost of goods sold to the buyer, whether that is on a cash basis or deferred payment. The seller has to disclose to the buyer the margin of profit included in the sale price of goods agreed to be sold. It is a cost-plus markup sale, which is the ideal sale contract under Islamic Law. The basic theme of this research paper is to highlight the significance of the contract of Murabahah as a simple contract for the protection of consumers and not as a model of financing, which is prevalent in today’s Islamic banks. It aims to highlight its role in different types of sale contracts and its application to the sale of some major commodities. Both aspects of Murabahah, i.e., Murabahah as a simple sale contract for the protection of consumers and Murabahah financing, are discussed. The paper aims to explain how a simple Murabahah Contract protects the interest of consumers better than any other sale contract.

Author Biography

Rafia Naz Ali, Islamia College University Peshawar

 

 

References

Darul Ifta Jamihat ul Islamia Karachi available on https://www.banuri.edu.pk/readquestion/taoliyah-kitareef-kya-he-144205200822/01-01-2021

Government of Pakistan Ministry of National Health Services, Regulations and Coordination (Drug Regulatory Authority of Pakistan) notification October 28, 2013

Government of Pakistan Ministry of Health Islamabad Notification February 14, 2002

Kasani, Badai al-Sanai, vol.5

Luqman. Z. Necessity as a pretext for violation of Islamic Commercial Law: A Scenario of Mortgage Contract in the UK

Muhammad. A. ۔ Islamic Finance Revised and updated edition of Mezan banks guide for Islamic banking April, 2015

Muhammad. Y. Legal Status of prevalent financing of Islamic banks with respect to murabaha, ijara and shirkat e mutanaqis

Muhammad. S. Islamic Commercial Law, January, 2012

Nasir. J. A knee-jerk reaction of price controls Dawn September 13, 2021

Price control act 1940

Price Control and Prevention of Profiting and Hoarding Act, 1977

Quran: Surah An-Nisa- 29

State Bank’s Shariah Board Essentials and Model Agreements for Islamic Modes of Financing available on https://www.sbp.org.pk/press/essentials/essentials%20of%20islamic.htm

Usmani.T. Islam and modern economics issues volume 5 Idara Islamiat publishers, book seller exporters Lahore, Islamabad June,2008.

Usmani.T. Introduction to Islamic finance. Published by, Kluwer Law International P.O Box85889,2508 CN, The Hague, The Netherlands

Downloads

Published

2023-06-30

How to Cite

Zamin, M., Jan, M., Begum, M., Ali, R. N., & Qasim, M. (2023). Consumers’ Protection Under Murabahah Sale Contract. Journal of Social Sciences Review, 3(2), 807–816. https://doi.org/10.54183/jssr.v3i2.302