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MUQASSAH - Coggle Diagram
MUQASSAH
DEFINITION
Muqassah refers to debt settlement by a contra transaction or set-off which also means the discharge of a debt receivable against a debt payable
An implicit settlement takes place between the 2 parties, the debtor and creditor
Ibn al-Qayyim (1991, 1:321) defines it as the clearance of a debt which is due, with a debt similar in nature and character
As a result, there is no more debt between the 2 parties
Al-Dardir (n.d, 3:227) defines muqassah as the setting off a debt that is due to the debtor by a creditor who is at the same time indebted to the debtor with certain conditions
LEGALITY
HADITH
The tradition of the Prophet (SAW) and narrated by Ibn 'Umar as follows:
I came to the Prophet (SAW) and said that I sell camels in Baqi' for a price named in gold coins, but I collected in silver and vice versa. The Prophet (SAW) said: 'There is no harm to do so if the exchange is carried out according to the exchange rates of that day, and as long as you part without any debts between you
(al-Nasa's, hadith no 4593)
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QUR'AN VERSE
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Allah (SWT) says: 'O ye who believe! The law equality is prescribed for you in cases of murder (qisas): the free for free...'
[2:178]
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