Analyzing the Legal Nature and the Legitimacy of Discounting of Commercial Instruments based on their Single and Combined Nature in Islamic Jurisprudence (Figh) and Legal Opinions

Shahbazinia1*, Morteza; Ounagh2, Shahrzad

Analyzing the Legal Nature and the Legitimacy of Discounting of Commercial Instruments based on their Single and Combined Nature in Islamic Jurisprudence (Figh) and Legal Opinions

Authors

Morteza Shahbazinia1* ¹

Shahrzad Ounagh2 ²

¹ 1. Associate Professor of Law Faculty, Tarbiat Modares University, Tehran, Iran

² 2. M.A. Student of Private Law, Tarbiat Modares University, Tehran, Iran

Abstract

Since discounting is the assignment of the delayed monetary credit before the due date for less than the nominal sum, its legitimacy in Islamic jurisprudence (Imamiye and Aameh) and the governing rules and laws has faced some challenges mainly due to the dispute over setting out the legal nature of discount. Thus, in this paper, by inferring from the aggregate Islamic jurisprudential decisions in Imamiye and Aameh Islamic jurisprudence, the legal nature and legitimacy of discounting of commercial instruments have been examined; different types of questionable agreements have been taken into consideration, in terms of structure, based on the two general categories of single (integrated) and combined (mixed) nature. Therefore, some people have considered discount as a single (or integrated) agreement and some others have perceived it as a combined (or mixed) agreement. It appears that discount has an integrated nature in the form of sales agreement that has been recognized as “sales of debt” in Imammiye jurisprudence; the discount’s legitimacy, in regard to this nature, in Aameh Islamic jurisprudence is "prohibited" while in Imamiye Islamic jurisprudence, it is "allowed".
* Corresponding Author’s E-mail: shahbazinia@modares.ac.ir

Keywords

Discount

Monetary credit

Mixed agreement

Single Agreement