HAWALAH Source Link
A Coggle Diagram about PILLARS OF AL-HAWALAH
, CATEGORIES OF AL-HAWALAH
, SALIENT ISSUES OF AL-HAWALAH
, ADVANTAGES OF HAWALAH
, APPLICATION OF AL-HAWALAH
and Conditions of al-Hawalah
- The parties must be legally competent to act independently.
- The relevant parties shall give their consent on the Hawalah agreement.
- The acceptance of the creditor and the transferee should be given during the session of the contract.
- The subject matter of Hawalah should be debt (dain) and not a specific thing('ain).
- Both the transferred debt and debt to be used for settlement should be known an transferable.
- The transferee should owe a debt to the principal debtor. If the transferee is not indebted to the principal debtor and agrees to pay to the creditor the contract is changed to kafalah. As in this case the transferee is paying for the principal debtor.
- The principal debtor (al-muhil) should owe a debt to the creditor (al-muhal). In the absence of such a debt if the creditor (muhal) is refereed to the transferee, the contract is not a hawalah but is considered wakalah.