CONTEMPORARY APPLICATIONS ON THE JURISPRUDENCE OF HAWALAH: AN ANALYTICAL STUDY

Abstract

Al-Hawalah linguistically means “transfer” and in the Islamic Law refers to “the transfer of a liability (from the transferor) to the liability (of the one transferred to).” It has a great importance in dealings especially financial dealings. It is considered a concession from the Law-Giver for the ease of the people. Al-Hawalah was used greatly among the people in the past, and in the current day as well; like the transfer of money from one country to another between two individuals. Understanding its process has become difficult because of the several complications that have become part of it, this is why it is necessary to properly understand its conditions, pillars, its nature, and its procedures. This research has been named; “The jurisprudential rulings under the principle of Hawalah” and aims to understand the rulings that fall under it (i.e. Hawalah). The researcher has organized his research in a logical fashion and has made it easy in reading and simple in understanding. The conclusions of the research have been summarized in the end, the most important of which are: The legality of Al-Hawalah according to the Qur’an and the Prophetic Traditions and Scholarly Consensus and that it is encouraged by Islam, Hawalah is related to the business and debt-settlement contracts where there exists similarities and differences with either of them, due to this difference of opinion among the scholars regarding the nature of the Hawalah contract, a number of different opinions have stemmed in some of the jurisprudential matters that fall under it like – Is the transferee obligated to accept the Hawalah? Is the consent of the transferee and the one transferred to a pre-requisite? Is it permissible to transfer the debt upon one who has no liability? Is it permissible to demand collateral in a Hawalah? Etc.