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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.