Law of Contract in Islam - IPIEF FEB UMY

(1)

SYLLABUS

FACULTY ECONOMIC AND BUSINESS

INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF)

1 Name of Course / Module Law of Contract in Islam

2 Course Code

EU5204

3 Credit Value 2 credit hours

4 Objective

1. To provide the students with the introductory knowledge of Islamic Law (Fiqh).

2. To teach students the theories of Fiqh on property (maal), rights (huquq), ownership (milkiyah) and contract (‘aqd).

3. To prepare students for the study of the various Islamic commercial transactions

4. To expose students to issues related to debt and its treatment in Fiqh.

5. To enhance the students’ skills in relation to the application of Islamic commercial and financial transactions.

5 Learning Outcomes

1. Knowledge and Understanding (Basic Competence) Upon the completion of the course, the students should be able to:

 Describe the concept and theory of Islamic law of muammalah and contract in economic, finance and business.

 Understand how to explain general theory of knowledge and negative elements in transactions.

2. Intellectual Skill (Standard Competence)

Upon the completion of the course, the students should be able to:

 Demonstrate the importance of the knowledge of Fiqh Muammalah

 Demonstrate the ability to identify the prohibitive elements in financial and commercial activities.

 Demonstrate the knowledge of the theory of contract (nazariat al-‘aqd)

3. Practical Skill

Upon the completion of the course, the students should be able to:

 Apply various types of transactions to their daily business activities.

 Apply Islamic transactions as alternatives to

(2)

current business practices.

4. Managerial Skill and Attitude

Upon the completion of the course, the students should:

 Possess ability to analyze the prohibitive elements in financial and commercial activities.

 Possess ability to do a simple analyze the hybrid contract for their future research.

6 Synopsis

It is an introductory course which deals with the definition of some basic Shariah terms in relation to Fiqh- ul-Mu’ammalah. The course also includes discussions on the theories of property, rights, ownership and contracts.

However, the course more discussed in detail some important contracts, which are related to present economic/business and financial practices especially in Islamic banking and finance. The course while focusing on the various types of commercial contracts and their applications also covers fundamental principles of commercial and financial transactions in Islamic law. It also includes a chapter on the concept of debt (dayn) and its related contracts.

7 References

Required:

1. Wahbah Zuhaili, Financial Transactions in Islamic Jurisprudence, (original book: Fiqh al-Islam wa Adillatuhu) translated into English by Mahmoud A. El- Gamal, vols. 1-2, Damascus: Dar al-Fikr al-Mouaser, 2003

2. Muhammad Yusuf Saleem, An introduction to the Theoretical Foundations of Islamic Transactions, Kuala Lumpur: Ilmiah Publisher, 2009

3. Saiful Azhar Rosly, Critical issues on Islamic Banking and Financial Markets, Kuala Lumpur: Dinamas, 2008 4. Muhammad Ayub, Understanding Islamic Finance,

England: John Wiley & Sons, Ltd, 2007

1. A class will be managed by class leader, consists of a class leader and its deputy. They are selected democratically according to class members’ aggrement. The class leaders will get additional appreciation in terms of marks for respectively 10% and 7.5% out of normal marking arrangement above. Practically, they are responsible for several tasks:

a. Ensuring class attendance and venue b. Ensuring class assignment timely collected

c. Intermediating communicating between lecturer and students d. Assisting other related tasks concerning class if deemed necessary

2. Students are allowed to join class for tolerated maximum 10 minutes for late attendance, otherwise are forbidden entering class

3. Students who are absence due to getting sick and organizational activities must inform the lecturer and class leader 2 hours prior the class starts.

4. Late assignment submission will not be entertained and accepted

5. Students who were absence for three consequtive weeks or accumulately has 3 unclear absence, are not allowed to join class for the entire semester .

6. Test examination and assignment results will be openly announced

7. Students who got D and E on his final marks, must repeat the course on the next academic year

8. Cheating and any dishonest conduct will lead to dismissal

9. Students are required to actively visit BI research corner at least once a week. The visits will imply to additional 5% mark in the end of semester. A visit must get stamp from the library staff.

Law of Contract in Islam - IPIEF FEB UMY

SYLLABUS

FACULTY ECONOMIC AND BUSINESS

INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF)

1 Name of Course / Module Law of Contract in Islam

2 Course Code

3 Credit Value 2 credit hours

4 Objective

1. To provide the students with the introductory knowledge of Islamic Law (Fiqh).

2. To teach students the theories of Fiqh on property (maal), rights (huquq), ownership (milkiyah) and contract (‘aqd).

3. To prepare students for the study of the various Islamic commercial transactions

4. To expose students to issues related to debt and its treatment in Fiqh.

5. To enhance the students’ skills in relation to the application of Islamic commercial and financial transactions.

5 Learning Outcomes

1. Knowledge and Understanding (Basic Competence) Upon the completion of the course, the students should be able to:

 Describe the concept and theory of Islamic law of muammalah and contract in economic, finance and business.

 Understand how to explain general theory of knowledge and negative elements in transactions.

2. Intellectual Skill (Standard Competence)

Upon the completion of the course, the students should be able to:

 Demonstrate the importance of the knowledge of Fiqh Muammalah

 Demonstrate the ability to identify the prohibitive elements in financial and commercial activities.

 Demonstrate the knowledge of the theory of contract (nazariat al-‘aqd)

3. Practical Skill

Upon the completion of the course, the students should be able to:

 Apply various types of transactions to their daily business activities.

 Apply Islamic transactions as alternatives to

current business practices.

4. Managerial Skill and Attitude

Upon the completion of the course, the students should:

 Possess ability to analyze the prohibitive elements in financial and commercial activities.

 Possess ability to do a simple analyze the hybrid contract for their future research.

6 Synopsis

It is an introductory course which deals with the definition of some basic Shariah terms in relation to Fiqh- ul-Mu’ammalah. The course also includes discussions on the theories of property, rights, ownership and contracts.

7 References

Required:

1. Wahbah Zuhaili, Financial Transactions in Islamic Jurisprudence, (original book: Fiqh al-Islam wa Adillatuhu) translated into English by Mahmoud A. El- Gamal, vols. 1-2, Damascus: Dar al-Fikr al-Mouaser, 2003

2. Muhammad Yusuf Saleem, An introduction to the Theoretical Foundations of Islamic Transactions, Kuala Lumpur: Ilmiah Publisher, 2009

3. Saiful Azhar Rosly, Critical issues on Islamic Banking and Financial Markets, Kuala Lumpur: Dinamas, 2008 4. Muhammad Ayub, Understanding Islamic Finance,

England: John Wiley & Sons, Ltd, 2007

Recommended:

1. Mohammed Hashim Kamali, Principles of Islamic Jurisprudence, Kuala Lumpur: Ilmiah Publisher, 2007

Mohammad Hashim Kamali, Maqasid al-Shari’ah Made Simple, London: IIIT, 2008

3. Monzer Kahf, Maqasid al Shari’ah in the Prohibition of

Riba and their Implications for Modern Islamic Finance,

IIUM international conference on Maqashid al-Shariah,

2006

4. Mohammad Daud Bakar, Contracts in Islamic Commercial and Their Application in Modern Islamic Financial System, Kuala Lumpur: IIUM

5. Essia Ries Ahmed

Factors Influencing the Involvement in Shubuhat Activities: The Case of Shari‘ah-Complaint Companies in Bursa Malaysia, International Conference on Islamic Banking &

Finance, 2010

6. Siddiq Mohammad al-Ameen al-Dhareer, Al-Gharar in Contracts and Its Effect in Contemporary Transaction, Eminent Scholar’s Lecture Series no. 16, Jeddah: IDB-IRTI

Md. Abdul Awwal Sarker, Islamic Business Contracts,

Agency Problem And The Theory Of The Islamic Firm, International Journal Of Islamic Financial Services Vol. 1 No.2

Boualem Benjilal, The Ja’ala Contract and Its Applicability to the Mining Sector, Discusion Paper no.14, Jeddah: IDB

& IRTI, 2004

Beebee Salma Sairally, Murabahah Financing: Some Controversial Issues, Review of Islamic Economics, No. 12, 2002, pp. 73-86

Soemitra, M.A. Andri, Bank dan Lembaga Keuangan Syariah, Jakarta: Kencana, 2009.

8 Lecturer Yuli Utami, M.Ec

9 Correspondence

IPIEF Room 402, Pasca Sarjana building, 2nd floor E-mail: [email protected]

WA: +62 85729989054

10 Consultation time Wednesday and Saturday (08.00am to 02.30pm)

11 Academic Evaluation

Test Competency I (30%), and II (30%) Memorizing 10 Verses about Riba (35%) Attendance (5%)

Total 100%

Week Topics Indicators

Instructional Strategies

Rules of class meeting:

a. Ensuring class attendance and venue b. Ensuring class assignment timely collected

c. Intermediating communicating between lecturer and students d. Assisting other related tasks concerning class if deemed necessary

2. Students are allowed to join class for tolerated maximum 10 minutes for late attendance, otherwise are forbidden entering class

3. Students who are absence due to getting sick and organizational activities must inform the lecturer and class leader 2 hours prior the class starts.

4. Late assignment submission will not be entertained and accepted

5. Students who were absence for three consequtive weeks or accumulately has 3 unclear absence, are not allowed to join class for the entire semester .

6. Test examination and assignment results will be openly announced

7. Students who got D and E on his final marks, must repeat the course on the next academic year

8. Cheating and any dishonest conduct will lead to dismissal

9. Students are required to actively visit BI research corner at least once a week. The visits will imply to additional 5% mark in the end of semester. A visit must get stamp from the library staff.

10. Grading System:

Grading and Weight Interval (%)