Islam encourages the human beings to carry trade activities and utilize the natural resources for well being of entire humanity. Islam has its teaching on financial matters. As sales is one of the most important components of trade so Islam being a Complete Code of Life has devised comprehensive rules for conduct of trade activity. Islam has emphasized and formulated Islamic rules for sales activity as it’s the most important component of trade.
Scope of the General Laws on sales of Goods
The Islamic law on sales of goods covers almost all types of Sales of commodity. As in Islam the purpose of trade activities is not maximization of wealth rather its purpose is the well being of humanity so Islamic Laws on Sales ensure this prime purpose of trading.
This Law covers almost all aspects of sales including;
1. Formulation of Contact of Sales (Offer and Acceptance, and other component of Contact)
2. Liability of Seller and Buyer in different situation.
3. The Quality of goods
4. Price Related Issues
5. Changes in Contract of Sales by mutual consent of the contacting parties
6. Destruction of Goods
7. Liability of Seller and Buyer regarding Expenses with Sales and Delivery of Goods.
8. Sales Deed, its preparation and its cost.
Exceptions to General Law on sales of Goods
Islamic Law on Sales doesn’t allow the sales of a debt or abstract thing. Furthermore This Law has certain exceptions in following transactions.
A- Buy-back (Bay Wafa)
In this transaction of the buyer will return the goods intact at the end of a certain period at an agreed enhanced price. However this transaction is contrary to the General Law on Sales because of the imposition of condition of repayment of different price and condition of return imposed by seller.
B- Deferred Delivery (Bay Salam)
In this Transaction the buyer make the Advance Payment and Goods are delivered after a certain period this condition contravenes the Sales Law that commodity must exist at time of sales.
C- Made to Order (Istisna)
In this type of sales the workman agrees to make certain goods of specific nature for the buyer but date is not fixed. Advance Payment may or may not be made. Like deferred deliver this transaction contravenes the Sales Law that commodity must exist at times of sales.
