Elements of Sale Contract Islamic Finance By: Majd Bakir, Financial Analyst ([email protected]) 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. …. Read on: http://financialencyclopedia.net/islamic-finance/tutorials/elements-of-sale-contract.html See also…     Language of Offer and Acceptance Conditions of Sale Types of Ba'i Conditions for Valid Sales For updates and new entries, please follow Financial Encyclopedia on: