contract formation, multiplicity, unilateral contracts sep20
Law
Why is it get it? Oh my God. I have made the madam Sabina the host so you can keep admitting those who want to go out and come in. And please allow me to share the screen, madam Sabina. You have me the host. Well, so today is the second day of the second week. So we have been discussing about the definition of after the Islamic law. The closest in this definition and a very briefly at how important they are and why they are important. And compared with the definition of contract in conventional law, and they looked at certain terms such as the subtle and as far as the Ponzi is concerned, we'll take it up next. Now. In fact, well, then we started to talk about the major variety of contracts. Distinction in contracts where most of the contract belonged to bilateral or multilateral contracts. And there are a limited number of contracts which are categorized as unilateral contracts in Islamic law. And we discussed about multiple contractors. Which is a fundamental requirement for contracts in Islamic law. Well, now. So I used to draw a lot when I used to present in the classroom. But since online is a bit difficult, I don't have prepared diagrams, but to explain to you the concept of contract, now here you can see this diagram, which shows the two contractors. These are the two contractors. There could be more. And now these parties have the contractual intent in their mind. Contractual intent is something in the mind of the parties. These parties intend the creation of a certain contract. So this is the contractual intent in the mind. Now I think I explained to you if not you would have heard in the records of previous lectures. That by contractual intent, we are not talking about the intention of creating a contract in the future. We mean the intent of creating the legal effects there and then. Which is what we refer to as the contractual intent. It's not simply an idea. I am going to do such and such a thing. I'm going to create such and such a contract. We aren't referring to the intention in general. You're talking off the specific. Intent of creating the legal effect. So this contract is hereby, created this intent in the mind. I am hereby creating this contract. For achieving such and such rights and obligations, as well as legal effects. So this is the contractual intent, which is in the minds of the parties. Now, this intent is expressed by them. In any acceptable mode, next we shall be talking about what are the modes through which this contractual intent can be, you and expression to how can the contractual can be expressed. So this is the expression of the parties which can be in writing or in words or in certain other forms. So these intent is expressed by the parties. Early it was in the mind that this contract is being created, and this is expressed by both or all parties involved. And these two or more expressions, they can create the contract when they join together. If they can combine together, for this data conditions, what are the requirements for? The expressions of multiple parties to omo parties come in together, join in together in order to form a single contract. So in our definition of contract, we refer to these expressions, the offer acceptance, they are coming together, which you refer to as the conjunction of the expressions or the conjunction of the offer and acceptance. Now, this is the contract. All of these have, of course, details, general details, and also when we go to specific contracts, they help specific details and specific requirements and conditions. So once those requirements are conditions, requirements and conditions are fulfilled, now these two expressions will not remain too expressions. They combine together to form a single contract, and this is only possible when all the relevant legal requirements are fulfilled. So this is what I try to indicate why. Putting this correct with the mark here, meaning that all necessary requirements are fulfilled, for instance, as we shall discuss next. This party is creating a contract where he's purchasing, let's say, car. The expression of the other party refers to the sale of car why. So even when all other requirements are fulfilled, no there is a discrepancy in the expression of the parties. That means they can not combine together, and join together to result in a single contract. So similarly, there are other requirements. So this is what you refer to as the in a legally identified manner in a legally recognized manner in the definition. The requirements are fulfilled, then these two expressions will join together come together to form a single contract. And what is the outcome of these formation of the contract? This results in the legal effect. Outcome of validly formed contract and Islamic law is that now this expressions give rise to an outcome, which is the legal effect. The legal effect is created through the conjunction of the offer and the acceptance. So this is the process through which the legal effect is created, which can pertain to the subject matter. And some put into the contractors, rights and obligations created. And far as the subject matter is concerned. The legal effects are reflected on it such as, let's say, transfer of one ship. So all of this happens, when these expressions come together in order to form a contract. Now, this is why we said that expression of contractual intent through of one acceptance, fulfilling the relevant legal conditions, this is vital for the creation of the contract. But this expression is an expression of what expression of the contractual intent in the mind. In the mind of the parties, so as I explained by contractual intent, we mean that mental will of creating the contract, this contract is hereby formed. This is what you refer to as the contractual intent, not the intent or general idea of doing something at such at some point later. No. The mental command or the mental intent, I am hereby, forming this contract, creating this contract in order to achieve these legal effects and rights and obligations. Now, that intent when expressed and these expressions join together, they form the contract when the requirements are fulfilled, and their result in the legal effect, which is principally reflected on the subject matter, and then also is reflected in regard to the rights and obligations pertaining to the parties. Well, now. I had briefly complained with the definition of contract in conventional loss, more details are there in the records. You should have listened to by now. And then we talked of the subtle fennel zone. And off, then about the requirement of multiplicity of contractors that the contract can result only when more than one party is actually involved in the creation of the contract. Which means that if only a single party expresses the contractual intent that does not result in a contract. This is the normal rule and we explain the reason reason for this, which is that the rights and obligations are conflicting in nature. And therefore, they can not be adequately represented by a single party. Now, remember that it is because of these principle principle of multiplicity of contractors that it is not possible for one person to act as the agent for both contractors. One person may not act as the agent for both contractors. I hope that you're taking notes if not you're going to be in serious trouble later. So because to make sense of what you find in the text and you reference material, you're having understood what I explain is vital. Well, so one person may not act as the agent for both or all contractors concerned. The sole reason is this. Because multiplicity of contractors is a requirement in creating a contract. Let's say that a contract is created between a parties a and B it can be a contract of sale or any other contract. A and B are the contractors. So let's say a party a a point P is agent. Let's say a is the seller. And a point P as his agent. So now, now be represents a and creates the contract along with B, P is the agent of the seller, and he creates a contract with whom. With party B who is the buyer? And we create the contract. We are P is an agent of the seller. And B is the original contract with the purchaser. They create the contract, is it possible? It is possible. You see, as far as multiplicity of contract is concerned, there are two parties creating this contract. So it is possible. Let's say that party B, the buyer, he also is dealing through an agent. He appointed Q as his agent. The seller appointed P as his agent. The buyer be appointed Q as his agent. And now we just continue digging. I can't do. It. I can repeat what's talking. Is anyone asking anything or just simply the mic was on? Well, so now P and Q, the agents of a and B, they create the contract. P and Q create the contract, it is still possible. As far as we're talking from, the perspective of multiple staff contractors, it is still possible. Both of them are agents. Representing different contractors and they create the contract possible because two parties are involved in the creation of the contract. Now let's consider third situation where the contractors, the seller and the buyer, a and B, let's say that appointed P as its agent to sell. They appointed P as an agent to sin. And be appointed, let's say that be who is the. Be who is the buyer, I'll try to a and B. Can you sorry, can you see the screen? No, sir. No, sir. Well, let's say the contractors are a and B. Is a contractor for it. Well, we'll have a problem. Let's forget about that. Now, a and B are the contractors, a point at whom we can tell me. For selling, period the agent for sale. Let's say that party B, who is the buyer, he too wants to appoint an agent for purchase. Let's say that 40 B, the buyer also appointed P as his agent to buy. The same person who was appointed as agent why the seller, he was appointed by the buyer to as an agent for purchase on his behalf. Now, party pre has agency from both sides, pay represents a, the sailor, and the sellers agent, and he represents B, the buyer and the bias agent now, does it mean that P himself can conclude this contract? Representing both parties. Which means that he will sign for both a and B because he has the agency from both parties. Now, Islamic law is not possible. RTP, who has a valid agency from buyer from the buyer to buy and the seller to sell, he can not conclude this contract himself despite of his having a valid agency from both sides, the reason is that the principle of multiplicity of contractors is violated here. One person may not represent both sides of a contract despite having a valid agency. So if he wants to act as the agent for a, then he can not use the agency for B he has to act as the agent for the sailor and directly deal with the buyer or any other agent of the buyer. If you want to represent the buyer, then he can not represent the sale as well, he has to de directly with the seller or with any other agent, the point and buy the seller. So this is why I said that if you come across any situation in the future, we saw where you hear that the buyer conclude the contract himself. So even whether it is not valid in semi colon. Well, so we explained that. That is an exception here in certain situations, one person may conclude the contract. Representing both sides in very a very limited number of situations such as a contract or sales sale conclude between a father and his minor child. So here the Sharia allows the father himself to conclude the contract, which although sale is a bilateral contract, we are multiplicity of contractors supplies and to contractors should take part in the contract. But in this situation, the father is allowed to create the contract presenting his minus one. He naturally, well, he represents himself, and he has, as The Guardian, he can represent the sun. And he can conclude the contract and multiplicity of contractors will not a hindrance to the valid formation of this contract. So this referred to as what did we refer to this as such by a single contractor? Yes, contract by a single contractor. And we meant bilateral contract, a normal contract that requires two contractors to a more contractors, a normal bilateral, multilateral contracts, created by a single contractor in exceptional situations. Where the requirement of multiplicity of contractors is overruled. Well, the other topic we discussed about was unilateral contracts, which is something totally different. I repeat this because some of us. They don't differentiate between contracts by a single contractor and in lateral contracts. Remember in contract by a single contractor we are talking of normal contracts where there are two parties, two contractors. Only that, in exceptional situations, one contractor represents both. In what we call unilateral contracts. There is only one contractor. Europe does not represent any other party represents all the instance. So in fact, what we call natural contracts are. Statements resulting in legal effect, in fact, the word contract does not fit there because multiple parties don't take part in this contract. So. The single person makes a statement that results in legal effect, and because of the statement resulting legal effect, we compare these with contracts because usually contracts result in legal effect. So to differentiate these statements from normal contracts, we use the term lateral contract to these and I think I mentioned the. Endowment to walk through as an example. And ibra O discharge writing off a date as an example where through the single statement made by a single party alone, the plagal effect is created. The legal effect is created and the other party to obtain these rights and another example can be guaranteed in Islamic law guarantees concluded by the guarantor alone. No endorsement necessary. No approval, acceptance, endorsement, necessary from any other party. With the guarantor issues the guarantee that I am hereby guaranteeing settlement of the date of so much due from B to a, these are statement of guarantee. So one this statement is made fulfilling the loan conditions. Now the contract of the guarantee is complete. The creditor or the data did not accept it. Even without the acceptance, as far as the guarantees concern, the guarantees legal value then complete, which means the creditor has the right to demand from the guarantor, the amount that they guaranteed with regard to the debt due from the stated data. Well, so that too can be an example for a lateral contract, so who can tell me the similarity between nuclear fuel contracts and a normal contract. On what basis is that contract called the contract? Madam adenine imani, are you here from section one? Yes sir. Okay, tell me on what basis are you letting contracts call contracts? We know because it has to legal effect. Very good. Yes. The sole reason is that these single statements to result in legal effects similar to contracts. So by extension of the term contract extension of the meaning of the term contract, the term contract is after these use to refer to these new lateral statements as well. Well, now make sure that you go through the material and slightly. Let's say a better explanation can be found in the past records. I am not sure whether the international contracts found there or not. So I go to the material because I'm presenting the subject in a very brief manner. So you'll need much more details than this if you were to answer any question. Well, now let's move on to. The essential elements for contracts. Essential elements for contracts. Now, before that I would like to discuss the other term mentioned in our course outline, which is promised in Islamic law. While miss in Islamic law. Now promises a term that is very much used in conventional law to the extent that contracts themselves as defined as promises. Which is not the case at all in Islamic law. And Islamic law there is very prominent distinction between promises and contracts. So never ever use the word promise in the context of contracts in Islamic law. Promises in Islamic law are not contracts or who that list. After this, after does not comprise of promises, why? Because what does promises essentially mean? Promise means the expression of the intent to do something in the future. Expression of intent to do something in the future, I will meet you tonight. At such and such a place. Or it is a normal promise, it can be contract rated as well. For instance, I will buy this car from you. Let's say, at such and such a price. On such and such a date, these are promise, to create a contract of sale. So we explained at the beginning that creating the legal effect is up with open contracting ceramic loan. Those expressions creating the legal effect. These are called, you see, that has resulted in legal effect and the process of creating legal effect is after the Islamic law. So me undertaking or expressing the wish or will or intent to do something in the future. Irrespective of whether it is a contract or not, these are promise, but it is not a contract. So according to Islamic law does not comprise of promises. After this 1112 comprises of expressions of contractive contractual intent of creating the legal effect. So understand is very well write it down underline it so that you can avoid major pitfalls and mistakes in the future. Well, now, but our purpose is because what is the significance of promising Islamic law in the domain of contracts? How far our promise is important in Islamic law. In the domain of contracts. Promises are not contracts or promises are not contractual statements. Because promise come from, one person, so even when two promises from two parties agree and are simulating nature and about one at the same subject matter, it is not a contract or after the Islamic law. Well, so what is the significance of promise in Islamic law? So we can look at this from two angles. Do promises result in legal effect that is one point. Do promises result in legal effect and the second point is promises legally enforceable. So let's discuss promise from these two angles. Promises, as I mentioned, or expressions of the wish or will to do something in the future, and as far as contractual promises are concerned, these are expressions of the will to create a contract in the future. Or an undertaking to create a contract in the future is a promise or contractual promise. I will buy this car from you. I will sell this to you. I will give a guarantee. I will give a loan. Or I will, let's say, fulfill this task, so this can be contractual promises, so promises mentioning a contract. Well, first of all, we shall try to understand where the promises result in legal effect or not. Well, we know that contract result illegal effect, I have hereby sold this laptop to you at this price. The other party to express expresses that we are talking about is the formal expression for creating a contract, if not we shall discuss later that contract can be created in other forms as well. So the other part is I have my purchase this laptop from you at this price. Now the contract is created and the legal effects are realized. The ownership of the laptop changes hand from the seller to the buyer by the on and now by virtue of his contract. He has already become the honor, and he comes from the obligation to pay the stated price to the seller as agreed, and the seller comes under the obligation of submitting the soul laptop to the buyer because the buyer has become the honor, and so the ownership transport takes place along with the contract as soon as the contract is created, transfer of policy takes place, the laptop does not remain the property of the seller anymore. It has become the property of the buyer now through the contract, contracted the magical process through which this effect was realized on a ship is now transferred to the other party. In the Islamic sense, which means that. The buyer has become the total honor, Portland complete all of the property. Sold. Well, and as far as we can liability is concerned, risk reliability will not transfer along with the contract in Islamic law as well as most instances in conventional law also risk a liability trans will take place along with the submission of their set to Dubai. Once the buyer obtains the position of the goods purchased, at that point, you'll start to bear the risk and liability for the item. So contracts result in legal effect. As far as promises are concerned, let's say that a person makes a promise. I will sell today on 21st half use the October. 2020, 40 a makes a promise to party B I will sell this laptop to you at 2000 rings. On. When do you want to? Make this happen. Let's see on first off, January 2021. I will sell this laptop to you for 2000 rigs on the 1st of January 2000 and 21. This is a promise. Promise to do what? Yes? Promised to publish the contract. I'm not to contract, promise to create a contract of sale or promise to sell. Well, now, this promise will this promise result in any legal