Kafalah Flashcards

Fiqh muamalat 2

1
Q

En. Khairul guaranteed Aidil’s RM30,000 study financing from Bank Barakah, but due to an accident and permanent disability, Aidil cannot work and relies on his family for life.

A

Bank suruh En. Khairul Repays Financing Aidil sbb
* En. Khairul is the guarantor of Aidil.

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2
Q

Definition of al-Kafalah contract: literally:

A

guarantee, security, bail, warranty, surety

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3
Q

Kafalat al-Dayn:

A

commitment to established rights for others.

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4
Q

Definition of al-Kafalah Contract Technically:

A

Contractual Commitments in Islamic Law

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5
Q

Kafalat al-badn/wajh

A

a contract that promises to bring a person who has rights for others

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6
Q

Kafalat al-’ayn:

A

delivery of subject matter to another party.

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7
Q

BNM PD

A

guarantor-guarantor joint in assuming liability.

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8
Q

Shariah Rulings Al-Kafalah is

A

permissible (mubah) for the guaranteed party (makful ‘anhu) and beneficiary (makful lahu).

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9
Q

Shariah Rulings: It is also recommendable (mandub) if the guarantor (kafil) has the

A

capability and reliability to carry out the commitment.

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10
Q

Conditions of permissible debt

A
  • Shariah-compliant purpose.
  • Intention to repay.
  • Payment is based on expected future income.
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11
Q

Nature of Kafalah Contract

A
  • Considered one of three security contracts: al-kafalah, al-hawalah, and al-rahnu.
  • Act of Tabarru’, where the guarantor guarantees commitment for another party.
  • Also known as حمالة وضمانة وزعامة.
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12
Q

Kafalah: Assurance for Guaranteed Party’s Liability

A
  • Provides assurance on obligation fulfillment.
  • Binding (mulzim/lazim) on the guarantor.
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13
Q

Pillars of al-Kafalah Jumhur :

A

parties, subject matter, format qawul

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14
Q

Pillars of al-Kafalah Abu Hanifah & Muhammad Hasan: Format

A

Ijab & Qabul

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15
Q

Kafalah Contracting Parties

A
  • Guarantor (kafil): legal capacity to enter into a contract.
  • Beneficiary (makful lahu): legal entity.
  • Guaranteed party (makful `anhu): can be guaranteed by multiple guarantors.
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16
Q

Kafalah Contract Process

A
  • Affected by the guarantor’s offer.
  • An offer can be oral, written, or documented.
17
Q

Charging Fee on al-Kafalah

A
  • Percentage
  • Fixed amount
18
Q

Guarantor Fee Permission

A
  • Permitted for necessities or public conveniences.
19
Q

Application of al-Kafalah

A
  • Letter of Credit
  • Letter of Guarantee
  • Shipping Guarantee
  • Bank Guarantee
  • Advance Payment Guarantee
  • Performance Guarantee
  • Tender Guarantee
  • Credit card based on al-Kafalah contract.
20
Q

Contractual Agreement and Islamic Bank Guarantee

A
  • Customer enters contractual agreement with beneficiary.
  • RHB Islamic Bank issues Islamic Bank Guarantee (IBG) as a surety.
  • IBG issued as a fee to customer.
  • Customer default results in beneficiary claim from RHB Islamic Bank.
  • RHB Islamic Bank pays immediately on demand, provided claim meets guarantee conditions.
  • If no default, beneficiary returns IBG, RHB Islamic Bank cancels upon maturity.