Please enable JavaScript.
Coggle requires JavaScript to display documents.
:bulb: IBRA' CONTRACT :bulb: (CONDITIONS FOR A VALID IBRA' (:pen:…
:bulb: IBRA' CONTRACT :bulb:
DEFINITION
Literally:
release, eliminate or purify and to remove or mutual estrangement and removal
Technically:
an act of absolving or dropping one's financial right (to collect payment) from a person who has the obligation to repay the amount borrowed from him.
LEGALITY
Al-Sharbini (1992) of the Shafi'i school
advocates that ibra js encouraged (matlub). The rules are quite flexible compared to the guarantee (daman) since it is generosity to waive a debt from the debtor even he has no difficulty in settling debt.
The Holy Quran
: and if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay ; but if you remit it by way of charity, that is better for you if you did but know (Quran, 2:280)
LEGAL EFFECTS OF IBRA'
It is stated that an ibra' or a waiver from a debt that cause the debtor's liability to be absolved is based on the wording of the offer. Thus, when the liability is withdrawn, the creditor has no right :red_cross: to demand payment and any claims related to ibra' will not be entertained.
There is no requirement of acceptance from the recipient of ibra' since it is a waiver of right. An offer from the guarantor is sufficient to establish ibra' :+1:
CONDITIONS FOR A VALID IBRA'
:pen: The subject matter of ibra' (mahal al-ibra') :pen:
:arrow_right: It must be known specifically
:arrow_right: It should not be a tangible asset ('ayn)
:arrow_right:Ownership must be established and confirmed
:arrow_right: There must be existence of a right or existence of its casuality
:pen: The recipient :pen:
:arrow_right:He must be known and identified. Transfer of ownership to unknown recipient is not valid
:pen: The grantor :pen:
:arrow_right: He must be mature and possess legal capacity
:arrow_right: He must have the authority ro execute the ibra' on his own or to assign it to an agent.
:arrow_right:The consent must be obtained willingly and not by coercion
REVOCATION OF IBRA' (2 VIEWS)
:book::The Hanafi and the Hanbali jurists and one opinion of the Shafi'i jurists advocate the grantor cannot retract his ibra'. This is due to whatever rights he has had ceased with ibra'. The debt does not remain his.
:book: The Maliki and the Shafi'i jurists, hold that creditor can retract. This is because they emphasize the dominance of ownership in ibra' and the condition of acceptance of the offer, Hence, the possibility of retraction of the offer as long as it has not been accepted by other party
CONDITIONAL IBRA'
Ibra' can be executed after a right has been established. Jurists agree that ibra' is not valid before the existence of a right or its casuality. :handshake:
APPLICATION IN ISLAMIC FINANCE
:tada: Bank may grant ibra' to customer who perform early settlement before the end of tenure :tada: