Business and Social Contract from the Islamic Perspective

Transcript of the Talk delivered by Dr. Munawar Haque on Nov 01, 2013 on occasion of AMDA’s Friday Family Night Event

الحمد لله رب العالمين والصلاة والسلام على سيد المرسلين وعلى آله وأصحابه أجمعين

Assalamu Alaikum wa Rahmatullahi wa Barakatuh,

Brothers and Sisters! I am greatly honored, and humbled at the same time, to be amongst you. I am proud to be a member of this community. Such gatherings, as the one tonight, give us an opportunity to get together in order to strengthen our bond of brotherhood and sisterhood, and at the same time to acquaint ourselves with various aspects of life from the Islamic perspective. Tonight, in sha Allah, I will share with you some thoughts on the importance of business and social contracts in Islam.

First and foremost, it should be very clear that unlike man-made ideologies such as communism, socialism, capitalism, secularism, humanism and so many other ‘isms,’ Islam is a divinely inspired system, and a complete code of life for the benefit of humankind. Islam demands that Allah (SWT), our Creator and Sustainer be at the center of all human affairs, be they private or public, individual or collective, national or international. Thus, Islam is a complete and comprehensive social, political, economic, moral, and ethical system and way of life.  

This means that the business and social contracts we enter into, and the promises and pledges we make in our dealings with one another, are also an integral and essential part of Islam. There are numerous verses in the Qur’an and many sayings of our beloved Prophet Muhammad (SAW) which provide guidance in this regard.

What is a contract? It is a legally binding agreement between two or more parties. Thus, its terms and conditions should be fulfilled by all parties. Allah has commanded us to fulfill the terms and conditions of the contracts we enter into:

يَا أَيُّهَا الَّذِينَ آمَنُوا أَوْفُوا بِالْعُقُودِ

“O you, who believe; fulfill your contracts” (al-Ma’idah, 5:1).  This is a command that covers all contracts.

A hadith in Sahih al-Bukhari tells us,

الْمُسْلِمُونَ عِنْدَ شُرُوطِهِمْ

“Muslims are bound by all the conditions they have agreed upon.”

Another hadith in al-Tirmidhi tells us,

وَالْمُسْلِمُونَ عَلَى شُرُوطِهِمْ إِلاّ شَرْطًا حَرَّمَ حَلالًا أَوْ أَحَلَّ حَرَامًا  

“Muslims are bound by all the conditions they have agreed upon, unless the contract or its conditions are against the principles of Islam in the way of making something unlawful as lawful or lawful as unlawful.”

It goes without saying that the contracts and transactions that have to be honored are only those which are lawful and permissible. It is indeed sinful to deal with anything that Allah (SWT) and His Messenger (SAW) have declared forbidden or undesirable. One is not allowed, for example, to sign contracts or purchase agreements that have to do with any forbidden commodities such as intoxicants, liquor, pork, or that have to do with unlawful engagements and activities such as usury, gambling, lottery, games of chance, and all things that promote nudity, immorality and indecency. In the name of fashion, culture, progress, and advancement, Shaytan incites people to indulge in cheap, vulgar, lewd, and morally wrong practices. He beguiles them into thinking that Allah is Ghafur ur-Raheem, but makes one forget that Allah is also Shadeed ul-‘Iqab. As Muslims, we have to be cautious of the ploys and tricks of Satan. 

The ayah 177 of Surat al-Baqarah qualifies true righteous believers as those who fulfill their promises, pledges, agreements, deeds, and pacts.

وَالْمُوفُونَ بِعَهْدِهِمْ إِذَا عَاهَدُوا

“And those who keep pledges whenever they make them” (al-Baqarah, 2:177).

A similar ayah appears in Surat al-Ra’d,

الَّذِينَ يُوفُونَ بِعَهْدِ اللَّهِ وَلَا يَنقُضُونَ الْمِيثَاقَ

“Those who fulfill the agreements they make in Allah’s name and do not break their pledges” (al-Ra’d, 13:20).

Surat al-Mu’minun describes the true believers as those who honor their trusts and contracts.

وَالَّذِينَ هُمْ لِأَمَانَاتِهِمْ وَعَهْدِهِمْ رَاعُونَ

 “And those who honor their trusts and their contracts” (al-Mu’minun, 23:8).

Surat Aal ‘Imran tells us that Allah loves those who honor their pledges.  

بَلَىٰ مَنْ أَوْفَىٰ بِعَهْدِهِ وَاتَّقَىٰ فَإِنَّ اللَّهَ يُحِبُّ الْمُتَّقِينَ

“Indeed! ِAllah loves those who keep their pledges and are mindful of Him,” (Aal ‘Imran, 3:76).

As opposed to this, breaching a pledge made with someone is indirectly breaching one’s pledge made with Allah (SWT), because it is He who has commanded us to fulfill all pledges.

وَأَوْفُوا بِعَهْدِ اللَّهِ إِذَا عَاهَدْتُمْ وَلَا تَنْقُضُوا الْأَيْمَانَ بَعْدَ تَوْكِيدِهَا وَقَدْ جَعَلْتُمُ اللَّهَ عَلَيْكُمْ كَفِيلًا إِنَّ اللَّهَ يَعْلَمُ مَا تَفْعَلُونَ

“Fulfill any pledge you make in Allah’s name and do not break oaths after you have sworn them, for you have made Allah your surety: Allah knows everything you do” (al-Nahl, 16:91).

Breach of lawful contracts may be either intentional or unintentional. Entering into a contract with an intention to violate it is obviously intentional. A person who does so is a liar. Lying is a sin, and said to be among the traits of a hypocrite (munafiq). To break a promise made in earnest is also among the characteristics of a hypocrite. According to a hadith, "The hypocrite has three signs even if he offered the prayer, observed the fast, and professed to be a Muslim: (1) When he speaks, he lies; (2) When he makes a promise, he breaks it; and (3) When he is  entrusted with something, he proves to be dishonest." Such admonitions make a demand on us to keep assessing and evaluating ourselves and to keep exercising ample care and caution while entering into contracts and dealing with people.

Unintentional breach of contract is that in which one is completely sincere and truthful in one’s attitude and action, but unintentionally does something that goes towards revoking the contract or pledge. However, one is advised to be as careful and cautious as possible at all times. 

فَاتَّقُوا اللَّهَ مَا اسْتَطَعْتُمْ

“Be mindful of God as much as you can” (al-Taghabun, 64:16).

Any one showing negligence or insincerity toward honoring and fulfilling pledges and promises will be questioned on the Day of Reckoning.

وَأَوْفُوا بِالْعَهْدِ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا

“Honor your pledges: you will be questioned about your pledges” (al-Isra’, 17:34).

These divine teachings remind us to be sincere and truthful in our intentions, actions, and dealings. The spirit of these divine injunctions are further upheld by the hadith, which says, “Whenever the Messenger of Allah (SAW) preached his companions, he used to say: “The person who does not keep trust has no iman and the person who does not respect his contract has no deen.”

Truth and honesty are the basic requirements of business transactions and in dealing with others. The Prophet (SAW) said, "Both parties in a business transaction have a right to cancel it so long as they have not concluded it or separated; and if they tell the truth and make everything clear to each other, they will be blessed in their transaction, but if they conceal anything and lie, the blessing on their transaction will be eliminated.''

One of the oldest ways of cheating in business is selling commodities with less than the standard weight or measurement. This would include the practice of selling substandard, inferior or adulterated products. The basic motive behind this malpractice is to maximize profits and accumulate material possessions, without any regard for the ethical validity of the means to be adopted for this purpose. Allah has warned us against such malpractice in the following verses:

أَوْفُوا الْكَيْلَ وَلا تَكُونُوا مِنَ الْمُخْسِرِينَ. وَزِنُوا بِالْقِسْطَاسِ الْمُسْتَقِيمِ

“Give full measure, and cause no loss to others. And weigh with the true balance” (ash-Shu’ara, 26:181-182).

Everything in the creation is an amanah or trust from Allah (SWT) to man, and as the khalifah or vicegerent of Allah on earth, man has been assigned to establish a peaceful society and civilization on earth. The concept of amanah determines the individual’s relationship with the family, society, state, and government. It resolves the issues pertaining to the rights and responsibilities of individuals in every facet of life. Someone’s right is someone else’s responsibility: it is a huge contract of an individual with his society.

Now, let me share some thoughts with you on the importance of social contracts. One of the most important social contracts one enters into is that of marriage, because it starts a family.  Family is the basic unit and component of society. If the society is to be wholesome, the families forming such a society will have to be wholesome. Islam directs us to build a strong family at a very high moral level.

Unlike in Christianity, especially, in the Roman Catholic Church and the Eastern Orthodox Church, marriage in Islam is not a sacrament, i.e. it is not merely a religious ceremony or rite. It is a contract. It is not just a financial and physical arrangement of living together but it is a sacred contract between the spouses to enjoy each other physically and psychologically and to continue the lineage. Any interference to violate the contract of marriage by introducing any third party by a normal way or a biomedical technique is violation of Islamic law. Marital life is limited to its legitimate parties. This is why the concept and practice of surrogate motherhood and surrogate fatherhood is not allowed in Islam.

When a marriage is conducted, each spouse becomes the other’s lifetime companion. Each should understand and appreciate that Allah has brought them both together and that their destiny in life has now become one. Whatever the circumstances: happiness or sorrow; health or sickness; wealth or poverty; comfort or hardship; trial or ease; all events are to be confronted together as a team with mutual affection and respect.

Under the contract, a husband is responsible for the protection, happiness and maintenance of his wife. He is responsible for the cost of her food, clothes and accommodation according to his means and resources. Duties of a wife include: guarding her husband’s rights in his absence by protecting her honor and chastity; management of household affairs, preserving the husband’s property from loss or waste, refraining from doing anything that should disturb the peace of the family, and obedience and loyalty to the husband with a willing heart.

As no one in this life is perfect, one has to take into consideration the positive traits of the other side and avoid focusing on negative ones. Both husband and wife have to avoid all things that may make them less desirable to each other. Each side is expected to compromise some things that can be compromised and try to settle disputes, if they arise, amicably.

Muhammad (SAW) had listened to women in his society. The women often experienced denial of their rights, exclusion, and, and ill-treatment. The Prophet (SAW) conveyed to women the twofold requirement of spiritual training and of asserting a femininity that is not imprisoned in the mirror of men’s gaze or alienated within unhealthy relationships. In the light of spiritual teachings, he guided them to assert themselves, to express themselves, and to claim the real freedom of heart and conscience.

To actually learn the main tenets of the Islamic social contract, one needs to reflect upon the Rasoolullah (SAW)’s farewell sermon. He delivered this sermon on the 9^th day of Dhul-Hijjah, 10 years after the hijra, in the valley of Mount `Arafat, during his final Hajj (i.e., Hajj atul-Wida). After praising, and thanking Allah (SWT), he conveyed many gems of wisdom to the people gathered around him. Regarding treatment of women, he said, “O people, it is true that you have certain rights with regard to your women, but they also have rights over you. If they abide by your right then to them belongs the right to be fed and clothed in kindness. Treat your women well and be kind to them, for they are your partners and committed helpers. And it is your right that they do not make friends with anyone of whom you do not approve, as well as never commit adultery…”

Regarding social equality, he said, “All mankind is from Adam and Eve. An Arab has no superiority over a non-Arab, nor does a non-Arab have any superiority over an Arab; also a white has no superiority over a black, nor does a black have any superiority over a white except by piety and good action. Learn that every Muslim is the brother of another Muslim and that Muslims constitute one brotherhood. Nothing shall be legitimate to a Muslim that belongs to a fellow Muslim unless it was given freely and willingly. Do not, therefore, do injustice to yourselves. Remember, one day you will appear before Allah and answer for your deeds. So beware, do not stray from the path of righteousness after I am gone.”

He went on to say, “O people, no prophet or messenger will come after me, and no new faith will be born. Reason well, therefore, O people, and understand my words that I convey to you. I leave behind me two things, the Qur'an and my example, the Sunnah, and if you follow these you will never go astray. All those who listen to me shall pass on my words to others and those to others again; and may the last ones understand my words better than those who listen to me directly. Be my witness, O Allah, that I have conveyed Your message to Your people.

May Allah (SWT) bless us all with the tawfiq to fulfill our business and social contracts. May He bless us with physical, mental, and spiritual health, with pure Islamic fitrah and sound hearts. May He bless our families, our community, the entire Muslim community, and the humanity at large. Allahumma Ameen.

أَقُولُ قَوْلِي هَذَا وَأَسْتَغْفِرُ اللَّهَ لِي وَلَكُمْ وَلِسَائِرِ المُسْلِمينَ وَالمُسْلِمَاتْ فَاسْتَغْفِرُوهْ إِنَّهُ هُوَ الْغَفُورُ الرَّحِيمُ 

وَصَلَّ اللهُ عَلَى خيرِ خَلقِهِ مُحمَّدٍ وعَلَى آلِه وأصْحَابِه أجْمَعِين- بِرَحْمَتِكَ يا أرْحَمَ الرَّاحِمِين

Wassalamu Alaikum wa Rahmatullahi wa Barakatuh.

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