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Islamic Contract Law – Bargain Theory (English Law) Comparison
1. What is Bargain Theory? (English Law)
Simple Example
2. Key Features of Bargain Theory
3. Examples of Bargain Theory
a. Sale Contract
b. Service Contract
c. Debt Agreement
4. What is NOT a Bargain (in English Law)
5. Comparison with Islamic Contract Law
A. Core Foundation
B. Role of Consideration
C. Treatment of Promises
D. Focus of the System
6. Key Difference (Very Important)
Final Summary
One-Line Comparison
If you want, we can move next to will theory—it’s another key comparison often asked in exams.
1. What is Bargain Theory? (English Law)
- A contract is based on a bargain (exchange) between parties
- Each party must:
- Give something
- Receive something in return
Simple Example
- A sells a laptop to B for RM1000
- A gives: laptop
- B gives: RM1000
2. Key Features of Bargain Theory
- Focus on:
- Exchange of value
- Requires:
- Consideration
- Principle:
- “No consideration = no contract”
- Law is concerned with:
- What is exchanged, not morality
3. Examples of Bargain Theory
a. Sale Contract
- Goods exchanged for money
- Profit comes from:
- Price difference
b. Service Contract
- Work/services exchanged for payment
c. Debt Agreement
- Loan given → repayment promised
4. What is NOT a Bargain (in English Law)
- Pure promise:
- “I will give you RM1000” ❌
- No exchange → no consideration
5. Comparison with Islamic Contract Law
A. Core Foundation
- Bargain Theory (English Law)
- Based on:
- Exchange (consideration)
- Based on:
- Islamic Contract Law
- Based on:
- Fulfilment of obligations
- Moral + legal duty
- Based on:
B. Role of Consideration
- English Law
- Essential requirement
- Islamic Contract Law
- Not required in the same strict sense
- Focus is on:
- Consent
- Lawful subject matter
C. Treatment of Promises
- English Law
- Not binding without consideration
- Islamic Contract Law
- Can be binding:
- Morally
- Sometimes legally
- Can be binding:
D. Focus of the System
- English Law
- Economic exchange
- Legal enforceability
- Islamic Contract Law
- Ethical responsibility
- Justice and fairness
6. Key Difference (Very Important)
- Bargain Theory
- Contract = exchange of value
- Islamic Contract Law
- Contract = binding obligation that must be fulfilled
Final Summary
- Bargain theory explains contracts as:
- Mutual exchange (consideration-based)
- Islamic contract law is broader:
- Includes:
- Exchange-based contracts
- Non-exchange obligations (promises, covenants, oaths)
- Includes:
One-Line Comparison
- Bargain theory = “You give something, I give something”
- Islamic contract law = “Once you commit, you must fulfil”
If you want, we can move next to will theory—it’s another key comparison often asked in exams.
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