Guide to rights and obligations of contracting parties

In-Depth Analysis

Today we shall commence a discussion on the rights and obligations of the parties in a Shariah contract. The Shariah structures do not acknowledge any contract which has been made for the sale and purchase (or lease) of public domain properties. What are public domain properties? These are the assets and items of nature available for free public use, such as roads, rivers, oceans, mountains, deserts, green fields, forests, places of worship, graveyards and other such types of assets. All such properties are immovable in nature and are not able to be moved from one place to another. Shariah does not allow trading in public domain properties. Private domain property, immovable or movable, can be freely traded and can be made part of Shariah contracts. Properties in the ownership or possession of a certain person(s) or an entity in a legal manner require permission to enter — examples include parks, museums, airplanes, trains, marine vessels and places where you are required to buy a ticket. The first right a party has is that the counterparty holds the 'perfect capacity.' By perfect capacity, Shariah means that both parties are above 15 years of age and possess sound minds. The Quran defines it through the following verse: 'And put the orphans to trial (of their intelligence) until they reach the age of marriage (adulthood); then if you find in them sound judgment, deliver to them their property.' There are circumstances when this 'perfect capacity' could be temporarily lost: - State of Intoxication: Islamic jurists accept that a person may not be held responsible for his obligations under a contract if he could prove that he was involuntarily intoxicated. - State of coercion: Coercion or duress means to force a person to perform an act which he dislikes. A person should not be held legally responsible for his obligations under a 'coerced' contract.