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Muqassah - Coggle Diagram
Muqassah
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Definition
Ad-Dardir - The setting-off of a debt that is due to the debtor by a creditor who is at the same time indebted to the debtor with certain conditions.
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refers to debt settlement by a contra transaction or set-off and also means the discharge of a debt receivable against a debt payable
Legality of Muqassah
no explicit Quranic verse that indicates the legality of muqassah, however a few verse contaning word qisas that is revived from the same root word as muqassah which is qasasa.
O ye believe! The law of equality is prescribed for you in cases of murder (qisas): the free for free...- Quran (2:178)
In the law of equality(qisas) there is saving of life for you... (Quran, 2:179)
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Ijma'
Muqassah is acceptable by the contemporary Muslim scholars. For instance, the AAOIFI Shariah tandard No.4 (Item 3) spells out that it is permissible for the IFIs and their customers to exchange bilateral promises to settle debts which may be created between them in the future, by way of muqassah