Privacy of Legal Regulation of the Sale at Profit Contract for the Purchaser

This study has examined the legal system of purchase order murabahah(cost plus financing) contract and its particularism as one special kind of murabahah contracts. It’s also studied as one special kind of sale contracts. This type of contract is characterized by its double nature. That is, it has multiple branching contractual relations which, in their totality, form the purchase order murabahah contract. Chapter one of the study began with the concept of the Islamic banking since the purchase order murabahah contract is one of its commercial and investment tools. In this context, the researcher gave a definition of Islamic banking. She also highlighted the goals which Islamic banks have sought to achieve. It is worth noting here that researchers have given several definitions of the concept of Islamic banking. Then, the researcher held a comparison between Islamic banking and conventional/commercial banking. There are some people who don’t recognize the presence of Islamic banking, arguing that there are no differences between Islamic banks and other banks. Chapter two was devoted to the murabahah contract in terms of its definition, and multiple versions as it is considered one type of trades of trust. The researcher dwelt on this type of contract and its subtypes in terms of parties owning the commodity as well as other aspects which double murabahah includes, unlike simple murabahah. For example, the promise to purchase is present in the former but absent in the latter. This is in addition to the terms of the contract. In addition to the general conditions present in any contract, there are also special conditions present in the murabahah contract. In case of violating any of these special conditions, the contract shall lose its identity as murabahah contract. Chapter three examined the legal system of the purchase order murabahah contract in terms of specifying purchase order murabahah sale which includes its concept, steps of concluding this sale, versions of this sale as approved by some conferences in their sessions and the conditions necessary to be available in this process. These are both special conditions as well general conditions available in all contracts. These conditions are all related to the bank for it owns the commodity, in the first place, and may sell it to the purchaser according to murabahah. The purchase order murabahah contract is one type of trades which stipulates that the seller shall be owner of the commodity which he wants to sell to the buyer. The researcher also dwelt on the buyer’s promise(ordering the purchase) that he wants to buy the commodity if bought by the bank(ordered to purchase). In this context, the researcher explained what is meant by selling by promise, selling by purchase and how they are different from appointment which is given by the two parties with the presence of the right of option for both of them in buying or selling. This is in addition to whether the promise is binding or non-binding. In this regard, the researcher introduced some fiqh scholars’ opinions concerning this promise: in which cases it is binding and when it is not binding. The researcher also looked at the pillars of this contract which are also available in other trades according to general rules(offer and acceptance) on whether there is a certain form in murabahah selling contract which is concluded between the one ordering the purchase, and the bank ordered to purchase. It was pointed here that this contract is one type of contracts of exchange rather than instrument of donation. Further, the substitute is money rather than an in-kind substitute; otherwise that would be called a barter contract rather than a sale contract. This is in addition to the subject of the contract: commodity. This contract transfers ownership. The researcher also tackled the responsibility resulting from the depreciation of the commodity at the hands of the buyer, since the murabahah contract is subject to the general rules of the sale contract. In this regard, the researcher explained one important stage (authorization) whether the bank has collected the commodity from the first seller or the buyer himself/herself has been authorized to collect the commodity from the first seller. In this regard, the researcher studied the obligations of each party which include the buyer’s commitment to pay the installments, explanation of this process in case of the debtor’s failure to pay these installments on due dates whether because of inability or running around. The researcher here spelled out the consequences in each scenario, the bank’s commitment to guarantee any hidden defects as it is the seller. It provides a warranty against any defect as in other selling contracts. In the last part of this chapter, the researcher dwelt on the practical steps followed by Islamic banks in Palestine when concluding the purchase order murabahah contracts. The researcher had access to different forms of contracts: promise to buy, murabahah selling contract, steps followed by these banks as well as the elements included in them. In the light of the study finding, the researcher suggested a number of recommendations.