Ruling of the Shariah Advisory CouncilRelease Date: 03 Oct 2017 Updated on: 16 Aug 2018
The Shariah Advisory Coucil (SAC) ruled that the contract session for bai` al-sarf refers to the period of time during which the contracting parties enter into a contract, commencing with an offer (ijab), followed by an acceptance (qabul) to exchange monies between each other, and ending by the disengagement of the contracting parties physically or constructively, or through the waiving of rights to revoke the contract (takhayur). The delivery of money in bai` al-sarf shall take place during the contract session.
The practice of the delivery of money in bai` al-sarf, for instance on day two after transaction date (T+2) is construed to have taken place after the contract session. However, this practice may be allowed due to established customary business practice (‘urf tijari) arising from operational constraints. In addition, the delivery of money beyond the contract session may also be allowed in the event of unexpected disruptions.
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