Contemporary Primary Sources :: Court Cases :: 19 Muḥarram 1430 / 15 January 2009
National Shari'a Board - Indonesian Council of Ulama Fatwa No. 74 of 2009 on Shari'a Guarantees
Dewan Syari'ah Nasional MUI, Posted by Daniel Peterson, 29 February 2016
This fatwa concerns shari'a guarantees, and defines a shari'a guarantee as a guarantee between parties based on shari'a principles. The fatwa specifies that a contract that can be used as a shari'a guarantee is a Kafalah bil ujrah, the provisions of which include:
- the object of the contract can, in whole or in part, be a financial obligation that emerges from a shari'a transaction, or anything else guaranteed, based on shari'a principles;
- statement of consent and acceptance must be enunciated by the parties to show their intention to enter into a contract;
- the contract fee must be stipulated in the contract, and agreed to by the parties; and
- a Kafalah bil ujrah is binding and cannot be terminated unilaterally.