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Al Hiwalah

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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

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