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Islamic Law of Transaction – Commodity (Māl), Ownership, and Sale Contract in the Ḥanafī School
Questions and Answers
Question 1: How do the Ḥanafīs define a commodity (Māl)?
According to the Ḥanafī school, a commodity (māl) is something that:
  1. Is desirable to people, and
  2. Can be stored or saved for later use.
This means an object must have recognized value and usefulness in society to qualify as property under Islamic law.


Question 2: What examples qualify as Māl according to the Ḥanafīs?
Examples include:
  • Money,
  • Gold,
  • Cars,
  • Houses,
  • Food,
  • Electronics.
These items are valuable, useful, and capable of ownership and storage.


Question 3: What did Professor Al-Zarqā’ say about the Ḥanafī definition?
Mustafa Al-Zarqā’ criticized the traditional Ḥanafī definition and proposed a broader definition:
“An owned commodity is any identifiable object with a material value for the people.”
This definition focuses more on market value and public recognition rather than merely the ability to store the item.


Question 4: Why do the Ḥanafīs not consider services and rights as commodities?
The Ḥanafīs generally do not classify:
  • Services,
  • Benefits alone,
  • Mere rights
as commodities (māl) because they are intangible and cannot usually be stored physically.
For example:
  • Teaching services,
  • Consultancy,
  • Intellectual rights
were traditionally not viewed as saleable commodities in classical Ḥanafī jurisprudence.


Question 5: What is the opinion of the majority of jurists (fuqahā’) regarding services?
The majority of Islamic jurists accept services and usufruct (beneficial use) as valuable commodities because:
  • People seek benefits rather than physical objects alone,
  • Services possess economic value,
  • Modern economies depend heavily on intangible assets and labor.
Therefore, they permit transactions involving services and benefits.


Question 6: What are the essential elements of a sale contract in Islam?
A valid sale contract requires:
  1. Offer (Ījāb),
  2. Acceptance (Qabūl).
The seller makes an offer, and the buyer accepts it. Mutual agreement creates the contract.


Practical Application Using USD Transactions
Case Scenario 1: Sale of a Laptop
Hamid sells his laptop to Rashid for USD 1,200. Rashid agrees to the price and pays immediately.
Practical Application
This is a valid sale because:
  • The laptop is recognized as māl,
  • It has material value,
  • Ownership is transferable,
  • Offer and acceptance exist.


Case Scenario 2: Hiring a Graphic Designer
A company hires a graphic designer to create a company logo for USD 500.
Practical Application
According to the majority of jurists:
  • The designer’s service has value,
  • The work performed is beneficial,
  • Payment for services is permissible.
However, classical Ḥanafī scholars traditionally distinguished services from physical commodities.


Critical Analysis
Question: Why is the concept of Māl important in Islamic commercial law?
The concept of māl determines:
  • What may legally be sold,
  • What ownership rights exist,
  • Which transactions are enforceable.
Islamic law aims to ensure that transactions involve real economic value and legitimate benefit.


Question: How does modern commerce challenge the classical Ḥanafī definition?
Modern economies rely heavily on:
  • Digital assets,
  • Intellectual property,
  • Online services,
  • Software subscriptions,
  • Professional consultancy.
These are often intangible but possess clear economic value.
Therefore, many contemporary scholars adopt broader interpretations similar to Professor Al-Zarqā’s definition to accommodate modern commercial realities.


Solved Case Scenario
Problem
A software developer sells a mobile application license to a company for USD 10,000. The company receives usage rights but no physical product.
Legal and Islamic Analysis
Under the classical strict Ḥanafī approach:
  • The software license may not traditionally qualify as tangible māl.
Under the majority and contemporary view:
  • The software possesses measurable market value,
  • The license provides lawful benefit,
  • The transaction is commercially recognized.
Thus, most contemporary scholars would permit the transaction.
Solution
The sale is generally considered valid today because:
  1. The software has economic value,
  2. The benefit is lawful,
  3. Both parties consent,
  4. The rights and obligations are clearly defined.


Offer (Ījāb) and Acceptance (Qabūl)
Example of Offer and Acceptance
Seller:
“I sell this camera to you for USD 700.”
Buyer:
“I accept the purchase for USD 700.”
Practical Effect
Once offer and acceptance occur:
  • The sale contract is concluded,
  • Rights and obligations arise,
  • Ownership transfer becomes legally enforceable.


Summary
The Ḥanafīs define māl as property that is desirable and capable of storage, while Professor Al-Zarqā’ expanded the concept to include anything with material value recognized by society. Although classical Ḥanafī jurists excluded services and intangible rights from commodities, the majority of jurists and many contemporary scholars recognize their economic value and permit transactions involving them. Every valid Islamic sale contract ultimately depends upon offer (ījāb) and acceptance (qabūl), which establish mutual consent and contractual obligation.

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