Business precepts of islam: The lawful and unlawful business transactions according to shariah

Abstract

The lawful or permissible (halaf) and unlawful or prohibited (haram) transactions in Islamic jurisprudence (fiqh) are presented in this chapter. The rationale behind all of these tenets of business practices in Islamic economic system is bound by the fact that everything that is good and beneficial for the society is lawful and permissible and anything that causes harm or menace to the society is unlawful and prohibited. This is the foundation of Islamic business precept and quintessentially forms the ethical system in Islam. Some of the general rulings regarding the tenets of business transactions will be discussed in light of the Shariah - Islamic social/legal system and the basis for such decrees.