ABSTRACT
In Islamic law the term contract (‘aqd ) is widely used for two-party transactions, settled by proposal on one side and acceptance on the other. However, it is also used for dealings such as guarantees, gifts, bequests, etc. that are settled by a proposal only. In this chapter, the legal status of different business contracts is discussed and a detailed sight is given on some crucial concepts like Mortgages, Insurance, Takaful (as an alternative to conventional insurance), takaful and risk mitigation and so on. This chapter also muses over the highly significant and related aspects including the Sharī’ah basis, the structure of the takaful industry, Islamic insurance vs conventional insurance and charging a fee on signing a deal between the seller and the buyer.
