END-OF-SEMESTER EXAMINATION SEMESTER 2, 2002/2003 SESSION KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

Programme Time Duration : : :

ENM/B.ECONS/BBA/BACC/BMIS

Level of Study : Date Section(s)

1-4 : 21/3/2003 : 1-7

3.00 - 5.30 p.m. 2 Hr(s) 30 Min(s) ECON 3510 Fiqh for Economists I

Course Code : Course Title :

(This Question Paper Consists of 4 Printed Pages With 3 Sections)

INSTRUCTION (S) TO CANDIDATES DO NOT OPEN UNTIL YOU ARE ASKED TO DO SO

Section A: Section B: Section C:

Write a T for a true and an F for a false statement. Select any 16 of the statements. Answer any SIX of the statements. Please provide reasons for your answers. Answer any FOUR questions.

Any form of cheating or attempt to cheat is a serious offence which may lead to dismissal

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FIQH FOR ECONOMISTS I ECON 3510

Section A Write a T for a true and an F for a false statement. Each correct answer carries mark. Select any 16 of the statements. 1. ( 2. ) When a non-homogenous/ non-replaceable-qimi- property is destroyed, a

person is obliged to compensate it with a property similar to it. ( ) The majority of schools of Fiqh do not consider usufruct as a form of wealth. 3. ( ) The parties who could speak are not allowed to enter into a contract by action. 4. ( 5. ( ) The offer exists as long as the session exists, provided it (the offer) is not ) If the parties to a contract are at two different places, they cannot enter into ) The majority of the schools are of the opinion that a child who owns enough ) Ahliyya al Ada refers to the capacity of a person to receive rights and ) Ahlyyia al-wajoob or the capacity to receive rights and obligations is ) A person who has attained a complete capacity of performance would still ) According to the Hanafi School of law a child who could distinguish ) An insane person has the same legal status as a child who could not ) The courts cannot take the property of a bankrupt person unless he gives his withdrawn. a contract because there is no unity of session/occasion. 6. ( 7. 8. ( ( property should not pay zakat. obligations but not to enter into a valid contract. possessed by all humans. 9. ( 10. ( 11. ( 12. ( need to get the approval of his guardian if he enters into any harmful contract. between bad and good can enter into all types of contracts. distinguish between bad and good. consent.

13. (

) A foetus has the capacity to receive certain rights after he/she is born alive.

14. A valid contract may not be executed if the property sold involves the right of a third party. 15. ( 16. ( 17. ( 18. ( 19. ( 20. ( Section B Attempt any SIX of the following statements. Do you agree with these statements? Please provide reasons for your answers. Each correct answer carries two marks. 1. The unity of session means that the contract should be concluded in one place. 2. An offer is considered cancelled if both parties engage in a discussion, which is not related to the contract. 3. A contract may be concluded both in present or future tenses as long as the words convey the consent. 4. Islamic Fiqh does not allow any contract (aqd) to be performed upon nonexisting object. 5. The option of determination alone does not entitle the parties to cancel the contract. 6. According to the Hanafiis a viodable contract is a contract where one of the pillars is defective. 7. Even if the defect of a certain goods is disclosed during the conclusion of the contract, the buyer may still exercise the option of defect if the defect has reduced the value of the goods. ) Mistake refers to a situation where one of the parties is made to believe that ) According to the majority of the schools of Fiqh a contract concluded by a ) The option of condition gives the parties the right to either confirm or cancel ) According to all the schools of law the option of defect could be inherited. ) The option of inspection can also be exercised by the owner or the seller of ) In the presence of options a contract is considered non-binding. the contract is in his interest, but in reality, it is not. person intoxicated by alcohol is not valid. the contract during the session of the contract.

the goods.

Section C Answer any four of the following questions. Each question carries five marks. Question One a. Explain who could be considered a prodigal-safih- and what his position is in terms of his Ahliyyah al-Ada. (2 marks) b. State briefly the various views on the relevance of motive/intention to the validity of a contract. (2 marks) Question two a. Briefly discuss any two classifications of contracts.(2 marks) b. Define fraud-tadlis- and discuss its various types. (2 marks) Question Three a. Explain briefly the division of property into valuable-Mutaqawwim- and nonvaluable-Ghair Mutaqawwim- properties. (2 marks) b. State the various ways through which ownership over usufruct-Manfaah- could be established. (2 marks) Question Four a. Briefly, explain the option of defect-Khiyar al-Aib. (2 marks) b. Discuss briefly various regulations/conditions that could be imposed on the usage of private ownership. (2 marks) Question Five a. Explain how guardianship-al-Walayah- is distinguished from agency-alWakalah. Use examples in your explanation. (2 marks) b. Discuss briefly the concept of session of contract- Majlis al-Aqd. (2 marks)