Legitimacy of India According to Muslim Jurists

LEGITIMACY OF ‘INAH ACCORDING TO MUSLIM JURISTS

Two separate contracts independent of each other take place unconditionally and each contract is finalised with the delivery of the asset to the other party, together with the fulfilment of all other general requirements for the validity of sale contracts.

Shafi’i Jurists

• when a person sells a commodity on cash or credit terms and hand over possession, and the parties separate with mutual pleasure about the contract, it is permissible for him to purchase it from previous buyer for an amount equal to, higher or lower than the former price, of the same currency as before or different, paying cash or on credit after receiving payments from the previous sale or before it.

• Even when one of the two parties is known for the practise of ‘inah, the intention of the parties, even when it happens to be unacceptable, does not result in the invalidity of the contract, unless such intention is given expression in the contractual text.

• When a party is known to practise ‘inah, the second sale is considered to be conditional on the first, by virtue of custom, thus resulting in both contracts becoming invalid.

Maliki Jurists

• Categorised the process in question under buyu’ al ajal.

• When one sells a commodity on a deferred payment and thereafter purchases it again, the price in the second transaction could be deferred for a period equal to the first, shorter than the first or longer.

• Formats invalid where the price of the second transaction is lower than that of the first, and is on a cash basis and where the price of the second transaction is higher than that of the first and is deferred for a longer period.

• Consider the second transaction along with the first, and regard the grounds viable enough to suspect