Islamic commercial law: study guide one
Learning outcomes
Chapter 1: An introduction to Islamic finance
- Define Islamic finance, whether in the form of banking, insurance or capital market segments.
- Describe the salient features of Islamic finance, comprising interest-free transactions, uncertainty-free transactions, profit and loss sharing and the economic and monetary functions of money.
- Illustrate how these features require the provision of different financial products to those supplied through conventional finance.
- Explain how Islamic finance can satisfy financial needs without violating religious prohibitions.
Chapter 2: Shari'ah compliance
- Define the meaning of Shari'ah compliance.
- Appreciate the importance of Shari’ah compliance in all financial activities of an Islamic financial institution.
- Identify the key stakeholder interested in Shari’ah compliance.
Chapter 3: Sources of Islamic commercial law
- Define the meaning of source of law from an Islamic perspective.
- State the importance of source of law in Islamic law.
- Distinguish between the primary and secondary sources of Islamic law.
- Distinguish between Shari'ah (Divine sources of law) and Fiqh (Islamic substantive law or positive law).
- Identify the most workable technique of law in developing contemporary Islamic commercial law.
- Describe the early development of Islamic (Sunni) schools of law.
Chapter 4: Methodology of interpretation of Islamic commercial law
- State the basis of interpretation in Islam.
- Define the meaning of Ijtihad or interpretation.
- Distinguish various forms of Ijtihad inclusive of both textual-based and human-based reasoning.
- Identify the need of Ijtihad in modern times.
- Demonstrate the practicality of Ijtihad in solving modern issues and problems.
Chapter 5: Formation of contracts
- Explain the meaning of contract ('Aqd) in Islamic commercial law.
- Explain the requirements of a valid and enforceable contract.
Chapter 6: Classification of contracts
- Describe the basis of classifications of contracts.
Chapter 7: Comparison of classifications of contracts
- Compare and contrast various classifications of contracts.
- Apply respective contracts to a specific case for a specific purpose.
Chapter 8: Traditional Islamic contracts and Islamic finance
- Illustrate the flexibility of Islamic commercial law to meet financial need without resorting to lending for an interest.
- Describe the relationship between traditional contracts and Islamic finance products and services.
Chapter 9: Overview of Islamic banking, Takaful and capital market products
- Understand and explain Islamic banking products.
- Understand and explain Takaful products.
- Understand and explain Islamic capital market products.
Chapter 10: Application of Islamic contracts in Islamic finance
- Explain the reason(s) why some contracts are preferable over other contracts in Islamic finance.
- Discuss briefly product development in Islamic financing using the traditional contracts.
Chapter 11: Implementation of Shari'ah standards, policies and rulings in Islamic finance
- Describe the objectives of Shari’ah standards.
- Explain how to deal with different rulings arising from different interpretations of the sources and techniques of law.
- Identify solutions to enhance Shari’ah compliance.