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KembaraXtra Islamic Finance – 50 Examples of ʿUrf (Customary Practice)


Introduction

In Islamic jurisprudence, ʿUrf means customary practice — the norms, traditions, and habits of a society that people commonly follow in daily dealings.


Key Principles:​

  • If a custom does not contradict Qur’an and Sunnah, it may be accepted as a valid legal basis.
  • If a custom contradicts Islamic rulings (e.g., charging interest), it is rejected.
  • Scholars divide ʿUrf into:
    • ʿUrf Ṣaḥīḥ (valid custom): Supported by Shariʿah.
    • ʿUrf Fāsid (invalid custom): Conflicts with Shariʿah.
    • ʿUrf ʿĀmm (general custom): Practiced widely in society.
    • ʿUrf Khāṣṣ (specific custom): Practiced by certain groups or industries.





In Islamic finance, ʿUrf often determines the interpretation of contracts, business practices, and social obligations — as long as it promotes fairness and public welfare.

50 Examples of ʿUrf (Case → Reasoning → Ruling)

A. Finance & Commerce (15 examples)

  1. Monthly salary payments → Customary in employment. → Valid.
  2. Grace period for loan repayment (e.g., 3 days) → Accepted market practice. → Valid.
  3. Round pricing (RM9.99 instead of RM10) → Harmless trade custom. → Valid.
  4. Payment in installments for appliances. → Widespread practice. → Valid if no riba.
  5. Advance booking deposits for hotels. → Common norm. → Valid with conditions.
  6. Bank service charges for transfers. → Publicly known. → Permissible.
  7. Late delivery compensation in trade. → Business custom. → Valid.
  8. Currency exchange commissions → Market custom. → Valid.
  9. Retail discounts during festivals → Socially accepted. → Valid.
  10. Bonus payments to workers before Eid. → Cultural norm. → Valid.
  11. Small gifts with purchases (free samples). → Harmless practice. → Valid.
  12. Verbal agreements in small trades → Long-standing custom. → Valid unless disputed.
  13. Auction bidding styles (raising hands, nodding). → Trade ʿurf. → Valid.
  14. Standard contract clauses (like late fees in utilities). → General business norm. → Valid if no riba.
  15. Use of cheques / e-payments instead of cash. → Social necessity. → Valid.


B. Family & Social Customs (10 examples)

  1. Giving mahr in kind (jewelry, property) instead of cash. → Accepted ʿurf. → Valid.
  2. Wedding dowry announced publicly. → Transparency custom. → Valid.
  3. Community gift exchanges at weddings. → Harmless. → Valid.
  4. Naming ceremonies for newborns. → Socially recognized. → Valid.
  5. Visiting graves on Eid. → Cultural habit. → Valid if no shirk.
  6. Use of family names (bin/binti). → Widespread. → Valid.
  7. Providing food to guests at funerals. → Compassion custom. → Valid if not burdensome.
  8. Seasonal greetings (Eid Mubarak). → Socially harmless. → Valid.
  9. Community charity during Ramadan. → Strong ʿurf. → Valid.
  10. Respectful dress codes in public. → Local custom. → Valid.


C. Trade & Market Dealings (10 examples)

  1. Standard product weights/measures set by market. → Trade norm. → Valid.
  2. Return policy in shops (7-day guarantee). → Custom. → Valid.
  3. Credit sales in agriculture. → Local practice. → Valid if fair.
  4. Seasonal price hikes (demand-based). → Market-driven. → Valid.
  5. Tipping service workers. → Harmless. → Valid.
  6. Installment cards for groceries. → Community practice. → Valid.
  7. Rent collected monthly. → Widespread norm. → Valid.
  8. Charging packaging fees. → Trade ʿurf. → Valid.
  9. Delayed payment in construction contracts. → Industry norm. → Valid if fair.
  10. Small bargaining before purchase. → Cultural trade custom. → Valid.


D. Judiciary & Legal Processes (5 examples)



  1. Use of local languages in court proceedings. → Public custom. → Valid.
  2. Swearing oaths on Qur’an. → Legal custom. → Valid.
  3. Community arbitration by elders. → Social dispute resolution. → Valid.
  4. Written contracts preferred over oral. → Legal ʿurf. → Valid.
  5. Acceptance of signatures instead of seals. → Modern practice. → Valid.


E. Modern Practices & Technology (10 examples)




  1. Digital receipts instead of paper. → Accepted norm. → Valid.
  2. Online shopping with cash-on-delivery. → Widespread custom. → Valid.
  3. QR code payments. → Local business practice. → Valid.
  4. Email as official communication. → Industry standard. → Valid.
  5. Electronic medical prescriptions. → Healthcare custom. → Valid.
  6. Electronic signatures on contracts. → Legal practice. → Valid.
  7. Smartphone banking apps. → Social necessity. → Valid.
  8. Ride-hailing apps (Grab, Uber). → Modern urban ʿurf. → Valid.
  9. Using WhatsApp for business orders. → Common ʿurf. → Valid.
  10. Cloud storage for official records. → Administrative custom. → Valid.










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