Definitions
What is salam?
A sale in which the buyer gives the seller advanced payment for deferred item
Aisha, the farmer, and Sara, the customer, are doing a salam transaction. Sara says she'll give $1000 to Aisha for her farming expenses in exchange of 1000 potatoes when Aisha's crops are harvested. They both agree and Sara says she'll give the money the next day. Is this permissible?
No, salam isn’t permissible unless (the seller) takes possession of the payment before he separates from (the buyer)
If a coin is 60% silver, is is considered silver or as goods?
If I exchange 11 dirhams for 10 dirhams and 1 dinar, is that permissible?
Silver; yes
What are the arkan of rahn?
Offer, acceptance, possession
Is exchanging gold for silver by estimation permissible?
What is necessary for a sarf transaction to be valid?
Yes; taking possession w/in that majlis
What is sarf?
A transaction in which both items are items of value
Are the transactions of carnivorous animals permissible? What about wine, pigs, and hasharaat (silkworms, bees, etc)? Is this rule the same for dhimmis?
Transactions of carnivorous animals are permissible. Wine & pigs is not. Hasharat is not unless there's something beneficial w/ them (like silk & honey). Dhimmis transaction for wine will be like a Muslim's transaction w/ juice & for pigs it'll be like a Muslim's transaction for pigs.
Hafsa sells Mahnoor a sword w/ silver adornments for 100 dirhams, and the silver adornments cost 50 dirhams. Mahnoor gives 50 dirhams and take the sword. Is this permissible?
What happens if Mahnoor pays 50 but doesn't take the sword?
What happens if Mahnoor gives 50 and says it's for the sword & the silver?
It's permissible, but she still owes the money for the sword. The 50 dirhams only cover the silver cost.
If she doesn't take possession, the transaction is invalid, unless the silver can be removed easily
The 50 will count for the silver, she still owes the sword amount.
What are the conditions for the rahn? What is it not valid in?
It has to be gathered, vacated, and not co-owned. It has to be for a liable debt
It's not valid for something shared, fruits on a tree w/o the tree, crops on land w/o the land, tree & land w/o either of them
It's also not valid in trusts, borrowed items, invested items
Sana (rahin) & Aniqah (murtahin) decide to give the rahn to Aisha. It gets destroyed in Aisha's hands. Whose liable?
Aniqah
What happens if you get fake money as a payment for debt and then u use it?
Sana owes Aniqah money. Can they do wakaalah? How would that work?
If Sana doesn't pay the debt off, what can Aniqah do?
Imam AH: u get nothing, Sahibayn: u get amt of fake money bk and get real stuff
Wakalah means Sana's like when debt's due, u can sell off rahn to pay it off.
Aniqah can imprison her. She doesn't have to help her sell the rahn.
What is the ruling for salam in the following items:
1. Clothes
2. Gems & pearls
3. Unbaked & baked bricks
4. Items whose quality can be specified & amount can be measured
1. Clothes - if length, width, area are specified, then its permissible.
2. Gems & pearls - impermissible
3. Bricks - if mould is specified
4. Permissible
Aisha sold her water bottle for some coins (that are not silver/gold) to Sana on Monday. Sana's supposed to pay her back next week, but the gov announces that those dirhams are no longer going to be used on Friday. What is the status of the transaction? Mention the diff of opinion.
Imam AH: transacation invalid
Imam AY: Sana's going to pay the value of the coins based on the day she bought the bottle (Monday)
Imam M: Sana's going to pay the value of the coins based on their value on Friday
Khadija owes Sara a debt of $100K. She gives her a rahn, which Sara takes possession of, but the rahn gets destroyed. What is the ruling if the rahn was $50K, $100K, or $150K?
If it was $50K, Khadija only owes $50K now. If it was $100K, Khadija doesn't owe anything. If it was $150K, the extra $50K was like a trust, so Sara doesn't have to give Khadija anything.
Can you increase rahn & debt? Mention diff of opinion.
Can you have 1 rahn for 2 diff ppl? What about 2 rahns for 1 debt?
What happens if the rahin dies?
Tarafayn: increase rahn is fine, can't increase debt, have to make new contract for that
Imam AY: can increase both
Yes. Has to pay off entire debt to get both rahns back.
The wasiyyah will sell rahn and pay off debt.
Rahn - collateral
Rahin - person giving collateral (pledgor)
Murtahin - person receiving collateral (pledgee)
What items is salam permissible in? What items is it not permissible in (3 types)?
Salam is permissible in items measured by volume, weight, count, and length. It is not permissible in items whose price can vary a lot depending on the item (like animals, their skin, body parts, etc). It's also not permissible unless the item is available from the time of contract till delivery. It's also not permissible for very specific items (like based on someone specific's measuring stick)
Aamenah sells a silver container to Khadija for 100 dirhams. Khadija gives 50 dirhams, and then they both leave. What is the ruling?
What if Aamenah sold Khadija the silver container, but then Hafsa comes and says her and Aamenah were co-owners for that utensil & proves it in court?
2. Khadija can pay the rest to Hafsa and take the entire container or return the container
What happens if the rahin sells the rahn, frees it, or destroys it?
1. Sells it: transaction on hold, if murtahin approves, it goes through OR if he pays off debt, it's fine
2. Frees it: slave is free, but that chart thing on the doc
3. Destroys it: murtahin will get the value of it as rahn
What happens if the murtahin gives the rahn to someone else to tc of it and it gets destroyed? What happens if murtahin is guilty of misconduct w/ the rahn?
Murtahin's liable. Murtahin will have to pay whole value, as if he stole item.
What are the buyer, seller, and item in a salam transaction called?
Buyer: rabbus salam
Seller: muslam `ilayh
Item: muslam fih
What are the 7 conditions that are needed in a salam contract for it to be valid (according to Imam Abu Hanifah)? Sahibayn differ on which 2?
1. Known genus
2. Known type
3. Known quality
4. Known measurement
5. Known time of delivery
6. Amount of payment if the item is sold by weight, volume, or quantity (sahibayn differ)
6. Specification of place of delivery if item requires delivery & transportation cost (sahibayn differ)
Nabihah goes to a money-exchanger and gives him a large dirham and says, give me for half of it a small dirham and for the other half cash. Is this permissible? If not, how would you make it permissible? Mention the difference of opinion.
Impermissible. Reword it to give me a small dirham and cash, so it's not ribaa
Sahibayn: the transaction will go thru for the cash part, not dirham
Imam AH: the whole this in invalid
Mahnoor has a debt of $12 on Khadija. She gives her a $10 mom horse as rahn. The mom horse has a baby that's $5. The mom horse dies. How much does Mahnoor owe?
$4
Rahn: Horse.
Whose responsible for its stable? Whose responsible for its caretaker & grooming & food? What's the ruling if it has a kid?
Murtahin - stable
Rahin - caretaker & nafaqa
Kid - it's the rahins but will be part of rahn for now