We would like to devote this section to a brief discussion of the general principles of the Islamic law contracts. The main focus will be on a detailed study of individual contracts. Many of these contracts are being utilised by Islamic banks. Some of the contracts used by banks have been placed in the section of credit and insolvency.

1. General principles of contract. The general principles have been discussed briefly in Outlines of Islamic Jurisprudence. An independent work on this topic will be placed here later, that is, as soon as it is ready.

2. The contract of sale in general.

3. Sale of goods for cash:

a. The spot sale
b. The credit-sale (bay` al-nasi'ah or bay` mu'ajjal)
c. Sale with advance payment (salam)
d. Goods made to order (istisna`)
e. Sale with earnest-money (`urbun also `arbun)
f. Contract for supplies (tawrid)
g. Sale with a stated profit (murabahah)
h. Sale at cost price (tawliyah)
i. Sale at less than cost price (wadi`ah)

4. The sarf contract and the loan transaction: exchange of money for money

5. The contract of hire (ijarah)

6. General offers (ji`alah)

A brief description of all these contracts is found in the book mentioned above. The Institute has plans to provide a detailed monograph on each of the above areas, or better still to provide a translation of some original work of the classical jurists.

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