Premium Essay

Al Hiwalah

In: Business and Management

Submitted By skaletone
Words 828
Pages 4
Literally
 To turn over, move or transfer
Technically
 To make a transfer of a debt from one debtor to the debtor account of another
 To transfer a debt from one person (debtor) to another with the same price, it comes to the consequence than the liability of the debtor is abolished. In other words, the first obligator is freed from any financial obligations.
 Hiwalah is a contract which caused the transfer of debt from one party to another.
 According to Mughni Muhtaj, the term hiwalah is refer to the debt transfer from a party/person to another.
 Through the transfer of a claim of a debt. the responsibility for its settlement is shifted from one person to another.
 Hiwalah is similar to the sale of debt but is not sale, it also resemble kafalah and wakalah.
 However. it is a unique contract which has its own distinct features and condition.
 The three important participants in a hiwalah contract are: the principal debtor, the creditor and the transferee.
 When a valid hiwalah is concluded, the debt is no longer demanded from the principal debtor.
 this is because in hiwalah, the debt is transfered from the principal debtor to the transferee.
 Furthermore. hiwalah establishes a right for the creditor to demand the settlement of debt from the fransferee.

Evidence
Hadith
• The prophet S.A.W: “The deferment (of paying debt) by the richer is an injustice. When there is one of you, get the offer from other to transfer your debt to another person, just accept it”
• In Riwayat Ahmad, Prophet Muhammad S.A.W: “Whom of you (the debt is transferred to a rich person) to settle the debt, please just accept the offer.”
Ijma
• The majority of Muslim Scholars opined that the word “please just follow” or “ please just transfer” is bring the means unnecessary command, not as on obligation.
• In other words, when the person A gives a debt to B, and…...

Similar Documents

Premium Essay

Hi Hello

...ISLAMIC BUSINESS TRANSACTION CONTENT DEFINITION DEFINITION EVIDENCES PILLARS CATEGORIES APPLICATION 2 Ð Ð Ð Ð Ð Ð DEFINITION EVIDENCE PILLARS OF AL-HIWALAH CATEGORIES OF AL-HIWALAH ADVANTAGE OF AL-HIWALAH APPLICATION OF AL-HIWALAH DEFINITION DEFINITION DEFINITION EVIDENCES PILLARS CATEGORIES APPLICATION 3 Ð Literally To turn over; move or transfer Ð Technically To make a transfer of a debt from one debtor to the debtor account of another To transfer a debt from one person (debtor) to another with the same price, it comes to the consequence than the liability of the debtor is abolished. In other words, the first obligator is freed from any financial obligations. Ð Hiwalah is a contract which caused the transfer of debt from one party to another. Ð According to Mughni Muhtaj, the term Hiwalah is refer to the debt transfer from a party/person to another. NATURE OF AL-HIWALAH DEFINITION DEFINITION EVIDENCES PILLARS CATEGORIES APPLICATION 4 Ð Through the transfer of a claim of a debt, the responsibility for its settlement is shifted from one person to another. Ð Hiwalah is similar to the sale of debt but is not sale, it also resemble kafalah and wakalah. Ð However, it is a unique contract which has its own distinct features and condition. Ð The three important participants in a hawalah contract are: the principal debtor, the creditor and the transferee. Ð When a valid hawalah is......

Words: 1478 - Pages: 6

Premium Essay

Hiwalah

...way people live with self-contained system that even the human muamalat well with Islam. Among the Islamic muamalat Midland were systemised to us is Al Hiwalah. Al Hiwalah is a unique system that is suitable for adaptation to humans. This is because al Hiwalah is part of human life in the secular. It often happens to the debt problem. So some way to solving this problem should be addressed secular Al Hiwalah this as a way of disposing of the problem. Al Hiwalah not only used to resolve the debt problems even more than that, it also serves as the transfer of funds from individual to another individual, company or firm as well as which has been adopted by some of the banking system. Thus, we takes the opportunity to study a bit about al Hiwalah, al Hiwalah concepts, definitions, propositions evidences, harmonious and conditions of al Hiwalah. We were also discusses the concept of al Hiwalah in the banking system is related to money (remittances). Concept of Al-Hiwalah: Definition: Al Hiwalah terms of language is moving. According to the Hanafi scholars define the term as the transfer of claims from obligations owed to dependents who are ready to take the liability. Other Hanafi scholars define as a aqad al-Hiwalah (contract) which led to the transfer of debts to other debt obligations. This means that al Hiwalah kind of contract (agreement qabul) the transfer of debt liability of a person owes to others, where other people had also due to the......

Words: 2778 - Pages: 12

Premium Essay

Activity Base Costing

...economies of scale exist, as suggested by Hunter and Timme (1986), then marginal unit cost of providing these activities depend, in part, on a bank’s customer base and some nontraditional activities are only applicable to certain types of customers. (1) Since most banks have an opportunity to serve at least two of the customer segments e.g. corporate banking and retail banking, they can provide nontraditional products and services to enhance their revenue streams. While considerable literature exists on banks’ nontraditional activities, it tends to look at different activities separately and focus on how these activities affect the level of risk at an individual bank (e.g. Avery & Berger, 1991; Booth & Thakor, 1991; Hassan, 1992 & 1993; Hassan et al., 1992; Hassan & Sackley, 1994). These studies do not consider what types of banks i.e. conventional or Islamic banks and large or small banks tend to be heavily involved in nontraditional activities. In Islamic banking, intermediation contracts provide agents set of tools to perform financial intermediation and to offer fee-based services for economic activities. The contracts like kafalah (guarantee), amanah (safe keeping), wakalah (agent) and ju’alah (promise/reward) complement the functions of Islamic banks as financial intermediaries by offering services for a fee to facilitate economic activities of consumers, corporate (1) Banks direct their financial services to three distinct market or customer segments: corporate......

Words: 5508 - Pages: 23

Premium Essay

Evolution of Islamic Banking

...Judeo-Christians views: that is, money by itself is “sterile”(4). Muslims considered that money should not be utilized for the creation of money, but for business activities or other objectives. Therefore, pre-determined interest was considered as unjustified in an Islamic economy. Riba (or riba al-buyu’) is divided into two types: riba al-nasi’ah and riba al-fadl. Riba al-nasi’ah arises from money-to-money exchanges in which the lender requests an amount that is more than the principal amount when a borrower fails to pay back borrowed money to the lender on the due date. In an Islamic economy, an excess of repayment over the borrowed amount is strictly prohibited. Although this is called interest in a modern economy (Iqbal and Molyneux 2005, p.9), in Islam riba is considered a coercive and inappropriate measure. The other type of riba (riba al-fadl) means an excess value of goods received in trade under a barter system. Under this system, the principle is that goods exchanged must be of the same value. However, if one party receives goods of value greater than the value of goods provided to his/her trading partner, it is considered that the person received riba (riba al-fadl). One can regard riba al-fadl as very similar to income without labor or income from inappropriate transaction, such as fraud. 112 The Journal of Applied Business Research – January/February 2009 Volume 25, Number 1 From another viewpoint, riba is unconscionable due to an immediate claim for property......

Words: 8514 - Pages: 35

Free Essay

Fiqih Muamalah

...terperinci, berupa nash-nash al Qur’an dan As sunnah serta yang bercabang darinya yang berupa ijma’ dan ijtihad. 2. Hukum-hukum syari’at itu sendiri. Jadi perbedaan antara kedua definisi tersebut bahwa yang pertama di gunakan untuk mengetahui hukum-hukum (Seperti seseorang ingin mengetahui apakah suatu perbuatan itu wajib atau sunnah, haram atau makruh, ataukah mubah, ditinjau dari dalil-dalil yang ada), sedangkan yang kedua adalah untuk hukum-hukum syari’at itu sendiri (yaitu hukum apa saja yang terkandung dalam shalat, zakat, puasa, haji, dan lainnya berupa syarat-syarat, rukun-rukun, kewajiban-kewajiban, atau sunnah-sunnahnya). 2.1.1 Pengertian Muamalah Kata muamalah dalam etimologi Bahasa Arab diambil dari kata (العمل) yang merupakan kata umum untuk semua perbuatan yang dikehendaki mukallaf. Sedangkan muamalat dengan wazan (مُفَاعَلَة) berasal dari kata (عامل) yang bermakna bergaul (التَّعَامُل). Adapun menurut terminologi (istilah) para ahli fiqih dan ulama syari’at, kata muamalat digunakan untuk sesuatu diluar masalah ibadah, sehingga muamalat lebih membahas hak-hak makhluk dan ibadah membahas hak-hak Allah Ta’ala. Dalam menentukan bentuk-bentuk mualamat, di kalangan mereka terjadi perselisihan yang terbagi dalam dua pendapat : Pertama, menyatakan muamalat adalah pertukaran harta dan yang berhubungan dengannya, seperti al-Bai’ (jual beli), al-Salam, al-Ijarah (sewa-menyewa), Syarikat (perkongsian/joint), al-Rahn (gadai), al-Kafalah, al-Wakalah (perwakilan) dan......

Words: 3452 - Pages: 14