Inheritance Of A Running Business

Contemporary Fatawa, Economics, Fiqh

Q. “Yousuf has a moderate sized business. Two of his sons assist him full time in the business. Two daughters are married. Yousuf passed away. The estate is not wound up immediately. Yousuf’s two sons continued with the business. Finally after ten years it is decided that the estate should be wound up and each person given his/her respective share. In the meantime, since Yousuf demise the business which was worth at Rs. 1,000,000/- is now worth two million.

June 22, 2010

Defects in an item

Economics, Part 5-Principles of Business

1. When selling an item, it is wajib on the person to show all the defects that may be found in it. It is harâm to conceal the defects and to convince the person into buying such an item.

2. After purchasing an item, a person noticed a defect in it, e.g. a woman notices that a cloth has been eaten up, a shawl has some moths in it or she notices any other defect. She now has the choice of keeping the item as it is, or returning it to the seller. However, if she decides to keep it, she will have to pay the full price of the item. It is not permissible for her to reduce an amount from the total price as a compensation for the defect. But if the seller agrees to reduce the price because of the defect, it will be permissible for her to pay less.

May 21, 2010

Zakah On Zakaatable Assets

Contemporary Fatawa, Fiqh

Q. 1. We have a retail shop at a rented premises. We have paid a huge amount for its “goodwill” when taking its possession. The question is whether Zakah is payable on the value of the goodwill which has now increased considerably? If zakah is payable on the goodwill, should we pay it on its original value or on the present value?

A. No Zakah is payable on the value of the goodwill of a shop.

May 11, 2010