اسلامیمالیاتمیںاشتراطِعقدفیعقدکافقہیمطالعIn the modern capitalist financial system, Islamic banking is currently facing the challenge of product innovation. On the contrary to its conventional counterpart, Islamic banking and financial institutions are bo

Abstract

In the modern capitalist financial system, Islamic banking is currently facing the challenge of product innovation. On the contrary to its conventional counterpart, Islamic banking and financial institutions are bound to obey Shariah principles as per the prudential regulation of the state bank of Pakistan. Islamic financial engineers, usually, design and develop a new product by combining two or more financial contracts which sometimes involves contingency between the contracts. Islamic financial law does not allow contingency between contracts. The objective of this paper is to explain the situation of contingency between the contracts and differentiate it from the situation that is termed a combination of contracts. This paper explains the concept of conditions (shurut) under the principles of four juristic schools and develops a summary that guides and support Islamic financial engineers in designing new Islamic banking and financial product without indulging the product in a state that is known as contingency between the contracts.