Why Should We Use Sharia Contract in Muamalah?

Laras Wati3 May 2024

1 27 5 minutes read

With a long history that dates back to Prophet Muhammad’s involvement in commerce at a young age, his example continues to serve as a model for ethical and successful business practices guided by Islamic principles.

The concept of entrepreneurship is not a new concept, it has existed since the time of the Prophet Muhammad. Rasulullah himself is a very good role model in carrying out entrepreneurial or business activities, he has started trading or entrepreneurship since he was 12 years old with his uncle Abu Talib since then the apostleullah began trading to various countries, until now the example of the apostleullah saw. always used as a reference in entrepreneurship in accordance with Islamic religious guidance.

Why Should We Use Sharia Akad in Business?

The Urgency Of Shariah Contract

Islam not only regulates matters of worship but also related to economics, business and other activities. In sharia business, there are very important things to consider, starting from the terms, pillars and principles of the contract that are carried out before carrying out transactions or business activities, and no less important is paying attention to whether the business contract is in accordance with sharia or uses conventional contracts that are inconsistent with Islamic law. The sharia contract regulates the process of business transactions in accordance with the principles of sharia law. In this article, we will discuss more about sharia contracts and their urgency in doing business and business transactions.

Definition of Sharia Contract

What is a Sharia contract? In terminology, the word contract is a word derived from Arabic عقدا عقد يعقد which means building or establishing, holding, agreement, mixing, and uniting. It can also mean bond or agreement. The complete definition of a contract means that a contract is an act or activity or transaction carried out by two or more people with the willingness of each party to make an agreement, agreement in accordance with applicable Sharia law.

Evidence on Sharia Contracts

We will discuss the background of the evidence underlying the existence of a Sharia contract.

Quranic Evidence

يٰۤـاَيُّهَا الَّذِيۡنَ اٰمَنُوۡۤا اَوۡفُوۡا بِالۡعُقُوۡدِ ؕ اُحِلَّتۡ لَـكُمۡ بَهِيۡمَةُ الۡاَنۡعَامِ اِلَّا مَا يُتۡلٰى عَلَيۡكُمۡ غَيۡرَ مُحِلِّى الصَّيۡدِ وَاَنۡـتُمۡ حُرُمٌ ؕ اِنَّ اللّٰهَ يَحۡكُمُ مَا يُرِيۡدُ‏ ١

“O you who believe! Fulfill the promises! Livestock is lawful for you, except for that which shall be mentioned to you, without making hunting lawful while you are in ihram (Hajj or ‘Umrah). Verily, Allah decides the law as He wills.” (Q.S Al-Maidah: 1)

يٰۤـاَيُّهَا الَّذِيۡنَ اٰمَنُوۡا لَا تَاۡكُلُوۡۤا اَمۡوَالَـكُمۡ بَيۡنَكُمۡ بِالۡبَاطِلِ اِلَّاۤ اَنۡ تَكُوۡنَ تِجَارَةً عَنۡ تَرَاضٍ مِّنۡكُمۡ وَلَا تَقۡتُلُوۡۤا اَنۡـفُسَكُمۡؕ اِنَّ اللّٰهَ كَانَ بِكُمۡ رَحِيۡمًا‏ ٢٩

“O you who believe! Do not eat from one another’s wealth by unlawful means, except in trade that is consensual between you. And do not kill yourselves. Indeed, Allah is Most Merciful to you.” (QS. An-Nisa:29)

Based on these two verses that if the party who has made an agreement is obliged to be fulfilled and of course in a halal way and followed by the pleasure of both parties

Hadist

حَدَّثَنَا عَفَّانُ حَدَّثَنَا حَمَّادُ بْنُ سَلَمَةَ أَخْبَرَنَا قَتَادَةُ عَنْ أَبِي الْخَلِيلِ عَنْ عَبْدِ اللَّهِ بْنِ الْحَارِثِ بْنِ نَوْفَلٍ عَنْ حَكِيمِ بْنِ حِزَامٍ أَنَّ رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ قَالَ الْبَيِّعَانِ بِالْخِيَارِ مَا لَمْ يَتَفَرَّقَا فَإِنْ صَدَقَا وَبَيَّنَا بُورِكَ لَهُمَا فِي بَيْعِهِمَا وَإِنْ كَذَبَا وَكَتَمَا مُحِقَتْ بَرَكَةُ بَيْعِهِمَا

“Told us [‘Affan] told us [Hammad bin Salamah] told us [Qatadah] from [Abu Al-Kholil] from [Abdullah bin Al-Harith bin Nufail] from [Hakim bin Hizam] The Messenger of Allah (blessings and peace of Allah be upon him) said: “Both parties to a sale and purchase contract have the right of khiyar (choice between taking the goods or returning them because of a defect) as long as they have not separated. If both of them are truthful and explain the goods then they will be blessed in their trade, but if both of them lie and conceal then the barakah of their trade will be removed.” (H.R Ahmad No. 14783)

أَخْبَرَنَا مُحَمَّدُ بْنُ رَافِعٍ قَالَ حَدَّثَنَا عَبْدُ الرَّزَّاقِ قَالَ حَدَّثَنَا مَعْمَرٌ عَنْ أَيُّوبَ عَنْ عَمْرِو بْنِ شُعَيْبٍ عَنْ أَبِيهِ عَنْ جَدِّهِ قَالَ نَهَى رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ عَنْ سَلَفٍ وَبَيْعٍ وَعَنْ شَرْطَيْنِ فِي بَيْعٍ وَاحِدٍ وَعَنْ بَيْعِ مَا لَيْسَ عِنْدَكَ وَعَنْ رِبْحِ مَا لَمْ يُضْمَنْ

“He narrated to us [Muhammad ibn Rafi’], who said: He narrated to us [Abdur Razzaq], who said: He narrated to us [Ma’mar] from [Ayyub] from [‘Amru ibn Shu’aib] from [his father] from [his grandfather], who said: The Messenger of Allah (peace and blessings of Allaah be upon him) forbade buying and selling on condition of debt, two conditions in one contract, and selling something that you do not own.” (H.R Nasai, 4552)

From these two hadist we can know that in a contract, whether it is buying and selling or other contracts, honesty and object clarity are required and it is not permissible to combine two contracts.

Urgency of The Need to Use Sharia Contracts

The transactions carried out are “legal” and more blessed and rewarding because the contracts in sharia business are carried out in accordance with sharia principles such as no elements of usury, gharar, maysir (gambling).

وَاَحَلَّ اللّٰهُ الۡبَيۡعَ وَحَرَّمَ الرِّبٰوا

“Whereas Allah has justified buying and selling and forbidden usury.” (Al Baqarah:275)

Because these elements can affect the integrity and morality of transactions. And the application of Sharia principles can also provide justice for all parties to the transaction.

The use of a specific Islamic contract in order to distinguish the contract of one transaction from another transaction so that there is no combination of contracts or gharar in transactions where the chosen contract is not clear.

“Hannad told us Abdah ibn Sulaiman told us Muhammad ibn Amr told us Abu Salamah told us Abu Hurairah said: The Messenger of Allah (peace and blessings be upon him) forbade making two sales in one transaction” (H.R Tirmidhi: 1152).

Providing a Sense of Security and Trust and Justice in Transactions

In sharia transactions, each party to the contract, whether it is the one who makes ijab or the one who offers the object and qabul the buyer of the object being sold, each party must be transparent and open and honest about the contract in the transaction being carried out so as to create trust and pleasure for one another. In addition, by using sharia contracts, the parties to the transaction feel safer because the risk sharing between the two parties is carried out fairly and both parties develop the same responsibilities. For example, in the use of musyarakah and mudharabah contracts, each party has a percentage of risk and profit sharing that has been agreed by both parties, so that no party feels disadvantaged.