This Presentation include just a brief information about Business Law, Contract according to Islamic Law & contract act 1872, also include contract Types, Elements,Discharging, Revocation, & finally Comparison of Islamic Contract & contract Act 1872.

3. PRESENTATION ON
ISLAMIC LAW OF CONTRACT
&
CONTRACT ACT, 1872

4. PRESENTED BY:
Ahmad Zia ‘’LODIN’’ 3816
Mohammad Sajjad ‘’ AZAMI’’ 3809
Matiullah 3811
Habib Karim 3815

5. Lay Out:
 Introduction To Business Law
 Contract According To Islamic Law & Contract Act 1872
 Elements Of Contract
 Elements Of Valid Contract
 Types Of Contract

6.  Discharging Of Contract In Islamic Law & Contract Act 1872
 Revocation Of Contract
 Comparison Of Islamic Law & Contract Act 1872
 Conclusion
Lay Out Cont…

7. Business law is a rule which helps us to regulate
and manage our business transactions and activities
system. It has direct relation with trade, industry and
commerce. e.g. insurance act, contract act, tax act, sale of
goods act, agency act etc.
Business Law

8. What is a Contract ‫?العقد‬
An agreement which is legally enforceable at law is a contract.
Equivalent word for contract in Arabic is ‫عقد‬
‘’ O believers! Fulfill the commitments’’ ‫یایها‬‫الذین‬‫آمنواأوفوبالعقود‬
‫(عهد‬covenant) , ‫ایمان‬ (oaths) , ‫میثاق‬ (pact) , and ‫وعد‬ (promise).
“All contracts are agreements, But all agreements are not contracts.”

9. OFFER/PROPOSAL
‫ایجاب‬
ACCEPTANCE
‫قبول‬
PROMISE
‫وعده‬
ElementsOf Contract ‫عقد‬

10. Offer/Proposal sec 2(a) - When one person signifies to another his willingness
to do or to abstain from doing anything.
Intention is called ‫نیه‬ in Arabic
Prophet ( PBUH) has said:
‘’The actions depend upon the intentions’’ ‫انما‬‫اال‬‫عمال‬‫بالنیات‬
Acceptance sec 2(b) - When the person to whom the proposal is made,
signifies his assent there to , the proposal is said to be accepted.
Promise sec 2(b) - A Proposal when accepted becomes a promise. In simple
words, when an offer is accepted it becomes promise.

11. PROMISEE/ACCEPTOR/
OFFREE
PROMISOR/OFFEROR
PROMISOR PROMISEE

12. PROMISE
CONSIDERATION
(Something in Return)
AGREEMENT

13. Consideration sec 2(d) - When at the desire of the promisor, the
promisee or any other person has done or abstained from doing
something.
Agreement sec 2(e) - Every promise and set of promises forming the
consideration for each other.

14. Contract sec 2(h) - An agreement enforceable by Law is a contract.
AGREEMENT ENFORCEABLE BY LAW CONTRACT

15. PROPOSAL
PROMISE
CONSIDERATION
AGREEMENT
LEGALLY ENFORCEABLE
CONTRACT VOIDABLE AGREEMENT
LEGALLY NOT ENFORCEABLE
VOID AGREEMENT

16. ELEMENTS OF A VALID CONTRACT
CONSIDERATION
AGREEMENT
REALITY OF
CONSENT
CAPACITY
LEGALITY
BARGAINED
FOR
ACCEPTANCE
LEGAL
DETRIMENT/
LAWFUL
OFFER SUBJECT
MATTER
OBJECTIVE
not valid
• FRAUD
• MISREPRESENTATION
• UNDUE INFLUENCE
• MUTUAL MISTAKE
not valid
•INFANTS
•MENTAL
•DRUNKARDS
•CORPORATIONS
WRITING
Elements
Legal relationship
Two parties

17. • Express contract
• Implied contract
ON THE BASIS OF
CREATION/FORMATION
• Valid contract
• Void contract
• Voidable contract
• Unenforceable contract
• Illegal contract
ON THE BASIS OF
VALIDITY/ENFORCEABILITY
• Executed contract
• Executory contract
ON THE BASIS OF
EXECUTION/PERFORMANCE
• Bilateral contract
• Unilateral contract
ON THE BASIS OF
LIABILITY
TYPES OF CONTRACT
Written or spoken
No use of word
Both side perfomed
Still in the process
Need acceptance
No need acceptance,
gift

18. Bilateral & Unilateral
Bilateral contracts
• A promise by one party in exchanged for a promise by another
party
• A one to one contract
Offeror
The person who
make the offer
Offeree
The person to whom
the contract was made
Example : Sale of goods contract
• The Buyer promises to pay the price
• The Seller promises to deliver the goods

20. Unilateral contracts
• A promise by one party in exchanged for an action by
another party
• A one to all contract
1 Offeror
Many
Offerees
Example :
X promises a reward to anyone who will find his lost wallet.
X bound himself to the promise, but no one is bound to search for
the lost wallet. But if Y, having seen the offer, recovers the wallet
and returns it, he is entitled to the reward.

21. Discharging of Contract According to Islamic
Law & Contract Act 1872
A contract is discharged in the
fallowing four ways:
‫:ایفاءالعقد‬ BY
Performance
‫:الصلح‬ By Accord &
Satisfaction
‫:الحواله‬ By Assignment
or Delegation
‫:االءقافه‬ By Rescission
& Release
One of the
party assign
his duty to
the third
party
One party relieves the
other party of his duty
voluntarily

22. Revocation Of The Contracts ‫خیارات‬
Five greater kinds of
‫خیارات‬
‫المجلس‬ ‫خیار‬ ‫الرویه‬ ‫خیار‬ ‫الشرط‬ ‫خیار‬ ‫العیب‬ ‫خیار‬
‫التغریر‬ ‫خیار‬/‫التد‬
‫لیس‬
This is the
option of
stipulation
This is
called the
option of
inspection
Means the
Revocation
of a
Session
At the option
of
Misrepresent-
ation & the
Hazard
This is the
option of
defect

23. Comparison of Islamic Law VS Contract Act 1872
Islamic Law Of
Contract
Contract Act 1872
Interest: prohibited in
Islamic Law of contract.
Interest: Not prohibited in
Contract Act 1872
Marriage & Divorce: Lawful in
Islamic Law of Contract
Marriage & Divorce : Not
mentioned
Contract & Sell at the time
of Prayer: Prohibited
Contract & Sell at the time
of Prayer: Not mentioned

24. Conclusion
The contract act illustrates elements that need to be fulfilled for a valid
contract.
The Islamic law of contract has detailed provisions to ensure viable
business transactions between the companies.

27. THANK YOU
HAVE A FABULOUS DAY 
End