6.3 Trade and Finance in Islam

• Agreements and contracts in trade: why business needs a clear, fair deal (Q 2:282)
• Write the debt: amount, term, a just scribe; cash on the spot may skip writing but a record still helps
• Witnesses and testimony: bring just witnesses; do not hide or harm the scribe
• No cheating: full weights and measures; honesty at a kiosk and on M-Pesa
• Riba named as a forbidden extra demanded on a loan (not a bank-product how-to); trade is permitted (2:275)
• Practise: dramatise a written agreement for a school fundraiser; consumer awareness when agreeing

• examine the rules on agreements and contracts according to Islamic teachings (Q 2:282)
• assess the significance of agreements and contracts in Islam
• practise the rules of agreement and contracts in trade and finance
• appreciate Islamic rules on agreements and contracts

“Why are agreements and contracts used in business transactions?”

The titles are open to everyone. Reading a lesson needs an account — sign in or create one.

1. Why agreements and contracts in trade
   40 min · 1 practice tasks · quiz
   Agreements and contracts make a business deal clear and fair; Islam uses them so later memory cannot rewrite the price or the debt (Q 2:282).
2. Write the debt: amount, term, just scribe
   40 min · 1 practice tasks · quiz
   2:282: when a debt is deferred, write the amount and the term; a just scribe writes what the debtor truthfully dictates; cash on the spot may skip writing.
3. Witnesses and testimony that is not hidden
   40 min · 1 practice tasks · quiz
   2:282 calls just witnesses so the written deal can be confirmed; testimony must not be hidden, and scribe and witnesses must not be harmed.
4. No cheating: weights, kiosk and M-Pesa
   40 min · 1 practice tasks · quiz
   A written contract is still haram if the kilo is short or the M-Pesa lie is long; 83:1–3 and 17:35 demand full measure and an honest hand.
5. Riba: the forbidden extra on a loan
   40 min · 1 practice tasks · quiz
   Riba is a forbidden extra demanded on a loan because time passed; 2:275 permits trade and forbids riba. Grade 8 names a shylock extra, not a bank-product how-to.
6. Practise: a written school-fundraiser agreement
   40 min · 1 practice tasks · quiz
   Learners dramatise a written fundraiser contract with witnesses, then assess why contracts matter and practise consumer awareness — KEBS agencies wait for 6.4.