Tasarruf Fuduli as a Mechanism for Ratification of Contract

As the products of Islamic banking and finance become more advance, there is an attempt by the industry to innovate products and services using the feature of ratification under “tasarruf fuduli” (unauthorised disposition) as the underlying principle. However, its application may not comply with the intended rules on ratification of unauthorised contract under Shariah. Thus, this paper studies the concept of tasarruf fuduli and ratification of contract in Shariah and how it applies in modern context. It examines views of the four Islamic schools of thought with regard to tasarruf fuduli and the element of ratification therein. Based on the studies, the paper proposes a parameter for guidance on ratification of tasarruf fuduli which is regarded as a very remote situation and should be carried out with caution.

By : Hamzah Kamaruzaman & Ahmad Arshad Ezhar

Lampiran :  Kertas Kerja