Islamic Contract Law: Classification of

Mal

Based on Fungibility

Meaning of Fungibility

Fungibility refers to whether a property can be replaced or exchanged with another property of the same or very similar type, quality, and value.

In terms of fungibility, mal is divided into two categories:

1. Mithli — fungible property
2. Qimi — non-fungible property

1.

Mithli

— Fungible Property

Mithli refers to property that has standard or similar replacements readily available in the market.

The replacements are generally:

• Of the same type
• Of similar quality
• Of the same quantity
• Equal or very close in market value

Because similar replacements are easily available, one unit can normally be substituted for another.

Example: New Proton Saga

A new Proton Saga of the same model and specifications may be considered mithli because:

• Many identical or very similar units are manufactured.
• Another car of the same model and specification can normally replace it.
• Their market prices are usually the same or very close.

Therefore:

Mithli = property that can normally be replaced by another equivalent property.

Types of

Mithli

Property

Mithli property can be classified according to how its quantity is determined.

A. Property Measured by Volume

These are goods whose quantity can be determined by volume.

Example: Milk

If one litre of a standard type of milk is owed, another litre of the same type and quality can normally replace it.

B. Property Measured by Weight

These are goods whose quantity is determined by weight.

Example: Gold

For example, a certain weight of gold of the same quality can generally be replaced by the same weight and quality.

C. Property Measured by Number

These are goods that are normally determined by counting the number of units.

Example: Eggs

For example, ten eggs of a similar type and quality may be replaced by another ten comparable eggs.

D. Property Measured by Length

These are goods whose quantity is determined by length or measurement.

Example: Cloth or fabric

For example, five metres of a particular standard fabric may be replaced by another five metres of the same type and quality.

2.

Qimi

— Non-Fungible Property

Qimi refers to property for which:

• No sufficiently similar replacement is available in the market, or
• Similar items exist but their individual characteristics and prices differ significantly.

Therefore, a qimi item is normally valued individually.

Examples

• Animals
• Works of art
• Used cars
• Antique watches
• Rare jewellery
• Unique collectibles

Example: Used Car

A used car is usually qimi because even two cars of the same model and year may differ in:

• Mileage
• Condition
• Accident history
• Maintenance
• Market value

Therefore, replacing one used car with another used car may not provide an equivalent replacement.

Qimi = property that is unique or cannot easily be replaced with an equivalent item.

Importance of the Classification

1. Compensation for Destroyed Property

The distinction between mithli and qimi affects how compensation is determined when someone’s property is wrongfully destroyed.

If

Mithli

Property Is Destroyed

The person responsible should generally provide a similar replacement.

Example:

If someone destroys 10 kilograms of standard rice belonging to another person, they may compensate the owner with:

10 kilograms of the same type and quality of rice.

This is possible because rice is generally mithli.

If

Qimi

Property Is Destroyed

Because an equivalent replacement may not exist, compensation is generally made according to the monetary value of the property.

Example:

If someone destroys a rare antique watch, another antique watch may not be equivalent.

Therefore:

Compensation would normally be based on the value of the destroyed watch.

Easy Rule

Mithli destroyed → replace with an equivalent item.

Qimi destroyed → compensate according to its value.

2. Relationship with

Riba al-Fadl

This classification is also relevant to riba al-fadl.

Riba al-fadl refers to an unlawful excess that may arise when certain ribawi goods of the same type are exchanged in unequal quantities.

Example

If gold is exchanged for gold of the same type, the exchange must comply with the Shariah requirements relating to equality and exchange.

For example:

10 grams of gold exchanged for 12 grams of gold may involve riba al-fadl.

The issue can arise with certain mithli properties that are also ribawi goods.

It is important to remember that not every fungible property automatically involves riba al-fadl. The rules apply specifically to goods that fall within the Shariah rules on riba.

Simple Summary

Mithli

Property that has standard and similar replacements in the market.

Examples:

• Milk
• Gold
• Eggs
• Standard fabric
• A new mass-produced car of the same model and specifications

If destroyed:

Replace it with an equivalent property.

Qimi

Property that is unique or whose similar items differ significantly in characteristics and value.

Examples:

• Animals
• Art
• Used cars
• Antique watches

If destroyed:

Compensate according to its monetary value.

Easy Way to Remember

Mithli = “I can replace it with another equivalent one.”

Qimi = “I cannot easily find an equivalent, so I compensate its value.”

1. Mithli — Fungible Property Mithli refers to property that has standard or similar replacements readily available in the market. The replacements are generally:  Of the same type Of similar quality Of the same quantity Equal or very close in market value  Because similar replacements are easily available, one unit can normally be substituted for another. Example: New Proton Saga A new Proton Saga of the same model and specifications may be considered mithli because:  Many identical or very similar units are manufactured. Another car of the same model and specification can normally replace it. Their market prices are usually the same or very close.  Therefore: Mithli = property that can normally be replaced by another equivalent property. 

Types of Mithli Property Mithli property can be classified according to how its quantity is determined. A. Property Measured by Volume These are goods whose quantity can be determined by volume. Example: Milk If one litre of a standard type of milk is owed, another litre of the same type and quality can normally replace it. 

B. Property Measured by Weight These are goods whose quantity is determined by weight. Example: Gold For example, a certain weight of gold of the same quality can generally be replaced by the same weight and quality. 

C. Property Measured by Number These are goods that are normally determined by counting the number of units. Example: Eggs For example, ten eggs of a similar type and quality may be replaced by another ten comparable eggs. 

D. Property Measured by Length These are goods whose quantity is determined by length or measurement. Example: Cloth or fabric For example, five metres of a particular standard fabric may be replaced by another five metres of the same type and quality. 

2. Qimi — Non-Fungible Property Qimi refers to property for which:  No sufficiently similar replacement is available in the market, or Similar items exist but their individual characteristics and prices differ significantly.  Therefore, a qimi item is normally valued individually. Examples  Animals Works of art Used cars Antique watches Rare jewellery Unique collectibles  Example: Used Car A used car is usually qimi because even two cars of the same model and year may differ in:  Mileage Condition Accident history Maintenance Market value  Therefore, replacing one used car with another used car may not provide an equivalent replacement. Qimi = property that is unique or cannot easily be replaced with an equivalent item. 

Importance of the Classification 1. Compensation for Destroyed Property The distinction between mithli and qimi affects how compensation is determined when someone’s property is wrongfully destroyed. If Mithli Property Is Destroyed The person responsible should generally provide a similar replacement. Example: If someone destroys 10 kilograms of standard rice belonging to another person, they may compensate the owner with: 10 kilograms of the same type and quality of rice. This is possible because rice is generally mithli. If Qimi Property Is Destroyed Because an equivalent replacement may not exist, compensation is generally made according to the monetary value of the property. Example: If someone destroys a rare antique watch, another antique watch may not be equivalent. Therefore: Compensation would normally be based on the value of the destroyed watch. Easy Rule Mithli destroyed → replace with an equivalent item.

Qimi destroyed → compensate according to its value. 

2. Relationship with Riba al-Fadl This classification is also relevant to riba al-fadl. Riba al-fadl refers to an unlawful excess that may arise when certain ribawi goods of the same type are exchanged in unequal quantities. Example If gold is exchanged for gold of the same type, the exchange must comply with the Shariah requirements relating to equality and exchange. For example: 10 grams of gold exchanged for 12 grams of gold may involve riba al-fadl. The issue can arise with certain mithli properties that are also ribawi goods. It is important to remember that not every fungible property automatically involves riba al-fadl. The rules apply specifically to goods that fall within the Shariah rules on riba. 

Simple Summary Mithli Property that has standard and similar replacements in the market. Examples:  Milk Gold Eggs Standard fabric A new mass-produced car of the same model and specifications  If destroyed: Replace it with an equivalent property. Qimi Property that is unique or whose similar items differ significantly in characteristics and value. Examples:  Animals Art Used cars Antique watches  If destroyed: Compensate according to its monetary value. Easy Way to Remember Mithli = “I can replace it with another equivalent one.”

Qimi = “I cannot easily find an equivalent, so I compensate its value.”