Kafalah (Guarantee): Literally: kafalah is assurance, its original meaning is related to joining and commitment. Technically: Jurists differed about the definition of guarantee based upon their differing opinions on its resulting effect. The majority of Hanafis defined it as: joining the liability of the warrantor to that of the principal in claims regarding personal injury, debts or material assets. A second definition of theirs: joining the liability of the warrantor to the liability of the principal for a debt. They consider the first definition to be more valid. The Malikis, the Shafis in their most famous opinion, and the Hanbalis define a guarantee as: the commitment by an adult of sound mind to make sure that a person who is required to appear in court does so. Guarantees are divided into two types: a guarantee of money, and most jurists call it Daman; or it could be a guarantee of a person, which some call it: guarantee of body or guarantee of face. It is in general legitimate, based upon the Qur'an, the Sunnah and the consensus of Muslim jurists. The Shari'ah Advisory Council of Bank Negara Malaysia defines kafalah as a guaranteed contract on a certain asset, usufruct and/or service provided by a guarantor to the parties involved. Generally, kafalah means a guarantee or to take on the responsibility for the payment of a debt or for a person's appearance in court. The majority of Muslim scholars view that the terms daman and kafalah carry the same meaning. However, some scholars confine the definition of daman to a guarantee of property while the term kafalah means guarantee of al-nafs or oneself. Classical jurists defined kafalah as a conjoining of the guarantor's liability to the liability of the guaranteed (Al-Sharbini, Mughni Al-Muhtaj, 2/198). It may also be defined as a contract which combines one's liability with another person's liability. Legally, in kafalah, a third party becomes surety for the payment of debt unpaid by the person originally liable. The degree or scope of suretyship should be known and should not come with preconditions. It is a guarantee given to a creditor that the debtor will pay the debt, fine or any other liabilities. See ISRA Islamic Financial System: Principles and Operations for further details.

Can an Islamic Bank State in an L.C. or Letter of Guarantee That the Fee Charged by a Conventional Bank Shall Be Obtained from the Beneficiary?
Resolution No. 148 (6/16): Al-Kafalatu Al-tijariyyah (Commercial Guarantee)
Can the Guarantor Charge for the Guarantee?
Resolution No. 12 (2/12): Letter of Guarantee
Can the End Customer Guarantee the Work of the Contractor in a Construction Contract?
Guarantee From A Contractor
Permissibility Of Muqawalah in Construction
A Fee for Renewal of a Bank Guarantee
Can a Trucking Company Charge Its Truckers a Commission for Acting as an Intermediary with the Government?
Can an Islamic Bank Ask a Client to Provide a Conventional Bank as a Guarantor?
Can an Islamic Bank Charge a Fee for Issuing a Letter of Guarantee?
Can the Agent for Investment Be the Guarantor of the Funding Recipient?
Can the Intermediate Seller Request a Guarantee from the Purchase Undertaker That Imported Goods Will Arrive in Good Condition?
Can the Seller’s Agent for Collecting Payments Act as the Guarantor of the Buyer?
Charging Fees For The Issuance Of A Letter Of Guarantee (LG)
Credit Guarantee
Is an Application for Documentary Credit That Lacks Detail Valid?
Is it Lawful for the Government to Provide a Guaranteed Minimum Profit on a Project?
Is it Lawful to Ask the Guarantor for a Guaranteed Check as a Security Deposit?
Issuing Kafalah In Relation To Conventional Banks
Issuing LGs For Soft Loans
Kafalah Renewal Fee
LGs From Conventional Banks for Project Finance
Should an Islamic Bank Offer a Guarantee for a Contractor Doing a Job for a Riba Bank?
Types Of Guarantee That Can Be Taken
What is the Proof That a Bank Can Charge for the Expenses of Issuing a Letter of Guarantee?
Who Has the Right to Profits Earned on Investment of Funds Sequestered to Secure an LC?
Agent As The Guarantor
Agent Assuming The Role Of A Surety
A Correspondent Bank Wants to Charge the Islamic Bank a Fee for Its Part in Issuing a Letter of Guarantee. Can the Islamic Bank Tell It to Charge the Customer?
Guarantees As Separate Contracts in Musharakah, Mudarabah & Wakala
Using Current Account Deposit as Pawn
Would KFH Be Held Responsible in Case the Shipping Company Acknowledged That the Goods Were Sound But Then Failed to Make the Delivery?
What Are the Rules Regarding Conditions Governing Murabahah Contract?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 158th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 150th Meeting
Resolution No. 161: The permissibility of the seller of a commodity to Al Rajhi providing a guarantee of the party purchasing from Al Rajhi
Deferred Guarantee in A Murabahah
Is It Lawful for the Bank to Ask the Purchase Orderer to Guarantee It against Damages Caused to the Bank by the Primary Seller?
The Buyer Guarantees the Reliability of a Fraudulent Exporter. Who Is Liable?
The Purchase Undertaker Does Not Want the Intermediate Seller to Incur Added Expenses for Insurance against Certain Risks (2)
التأمين على الديون والحياة
Kafalah In A Murabahah Transaction
Ensuring Proper Separation Of Contracts
Guarantee In A Murabahah Contract
LG from a Conventional Bank as Security in Murabahah
An Insurance Company Pledges to Collect Debts and to Pay the Debts It Can’t Collect
Insurance of a Debt
Appointing the Original Seller as an Agent, and Making Him a Guarantor for the Price
Third Party Guarantee – With Consideration
Can Money in a Current Account Be Used as Security for a Debt?
Is It Allowed to Have the Guarantor Sign the Guarantee Pledge before the Purchase That Creates the Liability on the Purchase Undertaker?
What Parameters for the Financial Independence of Subsidiary Companies Affect the Legality of Transactions with Them?
Is It Allowed to Ask the Contractor of a Project to Provide a Guarantor?
Is a Guarantee against any Defect in the Product of Istisna‘ Allowed?
Is It Allowed to Issue a Guarantee for the Benefit of a Conventional Bank?
Is It Allowed to Lease Buildings from an Entity and then Lease These Buildings to Another Entity for the Same Period, Noting that the Two Parties Are a Married Couple?
What’s the Rule on the Structure whereby the Products are Supplied Based on a Purchase Order Issued by the Ministry of Health to KFH’s Agent Company?
What’s the Fatwa Committee’s Opinion Regarding the Cooperative Marketing Contract and the Handling of the Returned and Damaged Goods?
Third Party Guarantee on Liability of a Mudarib’s Counterparty in Mudarabah Transaction
Mudarib’s Guarantee on Liability of His Counterparty in Mudarabah Joint Venture
Third Party Guarantee for Capital and/or Profit in Mudarabah Transaction
Shariah Concept for the Operation of Islamic Guarantee Facility by Credit Guarantee Corporation
Guarantee on the Sale Price
Shariah Concept for the Operation of Guarantee Facilityby Danajamin Nasional Berhad
Capital Segregation in the Operation of Danajamin
Scope of Danajamin’s Guarantee on Sukuk
Guarantee on the Obligation Arising from Purchase Undertaking
Shariah Concept for the Operation of Islamic Deposit Insurance
Commingling of Funds Contributed by Islamic and Conventional Banking Institutions in Deposit Insurance
Guarantee Limit for Islamic Banking Deposits by PIDM
Definition of Term “Deposit” in Islamic Deposit Insurance
Status of PIDM’s Claim Against Depositors ’Claim in the Event of Winding up of an Islamic Banking Institution
Application of Muqasah in Islamic Deposit Insurance
Mortgage Guarantee Facility
Priority of Depositors in Recovering Deposit in the Event of Winding Up of an Islamic Banking Institution
Surplus Sharing Post Liquidation and Payment of Claims between Islamic and Conventional Banking Funds
What's the Shariah Opinion Regarding the Kafalah of Another Person to Execute a Shariah Contract?
Is it Allowed for KFH in an Investment Partnership to Reserve the Partner the Right to Redeem Its Capital and Expected Profit in Case of Loss?
Is it Allowed for the Agent (Wakil) to Be the Guarantor?
What’s the Shariah Opinion Regarding Investing the Customer’s Money Deposited into a Margin Account as a Security Without the Permission of the Customer?
Is It Allowed to Charge a Fee on an Entrusted Amanah (Cash or Object) in Return for Safekeeping It?
Client Guarantee for Commodity Soundness in Murabahah Transactions
The Guarantor in Murabahah Transactions
Presentation of Cheques, Bonds and the Like as Guarantee in Murabahah Transactions
The Sold Commodity as Guarantee in Murabahah Transactions
Forged Documents in Murabahah Transactions
سداد البنك عند تخلف المتعامل عن سداد البضاعة في الاعتماد مؤجل الدفع
الوكالة والكفالة
تكييف الكفالة في حال الغطاء النقدي
كفالة شخص آخر لتنفيذ عقد شرعي
سداد البنك في اعتماد الوكالة مؤجل الدفع
Islamic Credit Card Based on the Concepts of Wakalah and Kafalah

Islamic Financial System ©



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