Elements of Sale Contract

Elements of Sale Contract
Islamic Finance
By: Majd Bakir, Financial Analyst (majd@financialencyclopedia.net)
The primary elements (arkan; sing. rukn) of a contract of sale (aqd al-ba'i/aqd al-bay'- ‫)عقد البيع‬,
according to the majority of fuqaha (jumhur- ‫)الجمهور‬, are: the two parties (seller and buyer), the
language (formula/sighat al-aqd) of the contract, and the subject-matter (object of sale/mahall
and price/thaman). Sighat al-aqd constitutes 'ardh/ijab (offer) and qubul/qabool/qabul
(acceptance). For the Hanafis (‫)الحنفية‬, the essential element of a sale is ijab wa qubul (offer and
acceptance), i.e., the statement signifying the willingness and acceptance to enter into a
contractual agreement.
The Hanafis consider offer an action indicating willingness to take part in a transaction (safqah).
It may be issued by the buyer or the seller, with acceptance being indicated by the other party. In
this sense, the offer is viewed as the primary action, while acceptance is the reaction, regardless
of the originating party. However, the majority of fuqaha opined that an offer originates with the
seller (owner of the object of sale), whereas acceptance is typically communicated by the buyer.
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See also…
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Language of Offer and Acceptance
Conditions of Sale
Types of Ba'i
Conditions for Valid Sales
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