Islamic law contracts and business transactions need to be clear by both parties who engage in doing business in the future. Moreover, during this modern era, everything comes easier, including in business among Muslims.
The Islamic law of contracts and business transactions should be done properly among Muslims under the Sharia context. It is important for both parties so that they can reach the purpose of their business for their mutual needs.
Speaking of which, here we have some of the Islamic laws of contracts and business transactions based on the Quran. Let’s see some of them below!
1. Mutual Needs
The mutual needs from both parties become one of the most important things in the Islamic law of contracts and business transactions. It can come from the obligations up to legal things that support the business and both parties such as based on the law of mutual funds in Islam.
The mutual needs that are written properly should be accepted by both parties in line with their agreement. This is important so that both parties can control the business to avoid some fraud and other things that may happen during the business.
It’s already mentioned in the Quran surah Al Maidah verse 1 below.
يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوْٓا اَوْفُوْا بِالْعُقُوْدِۗ اُحِلَّتْ لَكُمْ بَهِيْمَةُ الْاَنْعَامِ اِلَّا مَا يُتْلٰى عَلَيْكُمْ غَيْرَ مُحِلِّى الصَّيْدِ وَاَنْتُمْ حُرُمٌۗ اِنَّ اللّٰهَ يَحْكُمُ مَا يُرِيْدُ – ١
“O, you who believe! Fulfill promises. Cattle are lawful for you, except for what will be determined, by not making hunting lawful when you are in ihram (Hajj or Umrah). Verily, Allah sets the law as He wills.” (QS 5:1)
2. Avoid Gharar
Avoiding any type of Gharar becomes one of the most important things in the Islamic law of contracts and business transactions. That is because Gharar will create some speculations that describe the uncertain things in business. It is better to do some prayers to protect yourself from bad luck in Islam so that your business doing well.
Gharar in business transactions is prohibited so many years ago. Some of the businesses that contribute in a hazardous way are typical of Gharar, which should be avoided by both parties while doing business. Instead of doing Gharar, it is better to do some virtual gold investment from an Islam perspective.
It’s already mentioned in the Quran surah Al Maidah verse 90.
يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوْٓا اِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالْاَنْصَابُ وَالْاَزْلَامُ رِجْسٌ مِّنْ عَمَلِ الشَّيْطٰنِ فَاجْتَنِبُوْهُ لَعَلَّكُمْ تُفْلِحُوْنَ – ٩٠
“O, you who believe! Indeed, drinking, gambling, (sacrificing for) idols, and drawing lots of luck with arrows, are heinous acts and are included in the actions of the devil. So stay away from them so that you will be lucky.” (QS 5:90)
3. Avoid Any Type of Usury
Avoiding any type of usury becomes one of the most important things in the Islamic law of contracts and business transactions. Usury in Islam becomes the type of Riba prohibited in some businesses from so many decades ago.
Such as some of the common business agreements in Islam, avoiding Riba or usury is important. If Muslims insist to do that, they believe that they wouldn’t get any of Allah’s blessings by doing unlawful business.
It’s already mentioned in the Quran surah Al Baqarah verse 275 below.
وَمَآ اٰتَيْتُمْ مِّنْ رِّبًا لِّيَرْبُوَا۠ فِيْٓ اَمْوَالِ النَّاسِ فَلَا يَرْبُوْا عِنْدَ اللّٰهِ ۚوَمَآ اٰتَيْتُمْ مِّنْ زَكٰوةٍ تُرِيْدُوْنَ وَجْهَ اللّٰهِ فَاُولٰۤىِٕكَ هُمُ الْمُضْعِفُوْنَ – ٣٩
“And something usury (additional) that you give so that human wealth increases, it does not increase in the sight of Allah. And what you give in the form of zakat which you intend to gain the pleasure of Allah, then it is those who multiply (the reward).” (QS 30:39)
4. Doing Lawful Business
Doing lawful business becomes one of the most important things in the Islamic law of contracts and business transactions. Based on the Quran, every lawful business is permissible to do such as online business an Islamic perspective, and doing the unlawful one should be avoided.
As Muslims, most of them concern the most about lawful business. That represents that Muslims should consume some lawful only. Such as mentioned in the Quran surah Al An’am verse 145 below.
قُلْ لَّآ اَجِدُ فِيْ مَآ اُوْحِيَ اِلَيَّ مُحَرَّمًا عَلٰى طَاعِمٍ يَّطْعَمُهٗٓ اِلَّآ اَنْ يَّكُوْنَ مَيْتَةً اَوْ دَمًا مَّسْفُوْحًا اَوْ لَحْمَ خِنْزِيْرٍ فَاِنَّهٗ رِجْسٌ اَوْ فِسْقًا اُهِلَّ لِغَيْرِ اللّٰهِ بِهٖۚ
“Say, “I do not find in what was revealed to me, anything that is forbidden to eat it for those who want to eat it, except the flesh of a dead animal (carcass), flowing blood, pork – because all of it is dirty – or an animal slaughtered not on behalf of (name) ) God.” (QS 6:145)
5. Loss and Profit Principle
The loss and profit principle becomes one of the most important things in the Islamic law of contracts and business transactions. Both of them should be written and agreed upon by both parties within their liability.
Doing any kind of business commonly has a goal to reach profit. Even so, some losses that may happen should not be avoided too. That is why this agreement needs to be done correctly within the contract and add some Duas for wealth so that your business will get some blessing from Allah.
Moreover, it’s already mentioned in the Quran surah An Nisa verse 29 below.
يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوْا لَا تَأْكُلُوْٓا اَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ اِلَّآ اَنْ تَكُوْنَ تِجَارَةً عَنْ تَرَاضٍ مِّنْكُمْ ۗ وَلَا تَقْتُلُوْٓا اَنْفُسَكُمْ ۗ اِنَّ اللّٰهَ كَانَ بِكُمْ رَحِيْمًا – ٢٩
“O, you who believe! Do not eat each other’s property with vanity (not right), except in trade which is carried out on the basis of consensual between you. And don’t kill yourself. Indeed, Allah is Most Merciful to you.” (QS 4:29)
So, there are some of the Islamic laws of contracts and business transactions based on the Quran. Most of them are protecting Muslims in their business from doing some unlawful things. May Allah gives some of His blessings in their businesses.