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Philosophy and Fundamentals of Sharī’ah for Islamic Finance
SHA0011
a. The custom must not violate a divine text of the Qur’ān and
Sunnah or any Sharī’ah principles.

b. The custom must be consistently applied and be prevailing in
the society.

c. The custom must have been in effect at the time the activity
or transaction was carried out.

d. The two contracting parties must not have agreed to a condition
contrary to the customary practice. If they have agreed to the
contrary, then the customary practice is not recognised.

Application of the Maxim:

With reference to contemporary Islamic financial transactions, a good
example which is deemed to be a valid customary practice by scholars is
the acceptance of the definition used in spot trading for cross border
transactions. Even though the common understanding for spot trading
from the Islamic financial transaction’s perspective is on the same day
and within the contractual session (majlis al-‘aqd), the delay of two
business days (t + 2) has now been recognised as a spot transaction
due to the prevalent market practice to facilitate the transfer of funds
from one country to another.

UNIT 10: RELATIONSHIP BETWEEN ISLAMIC LEGAL MAXIMS (QAWĀ‘ID
AL-FIQH) AND ISLAMIC JURISPRUDENCES (UṢŪL AL-FIQH)

Both Qawā‘id al-Fiqh and Uṣūl al-Fiqh are tools that are used to deduce Sharī‘ah
rulings. The relationship can be observed as follows:

Table 1: Relationship between Qawā‘id al-Fiqh and Uṣūl al-Fiqh