In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 52 (3/6)

Conclusion of Contracts by Modern Means of Communication

The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 6th session in Jeddah, Kingdom of Saudi Arabia, on 17–23 Shaʿbān 1410h (14–20 March 1990),

Having examined the research papers submitted to the Academy concerning the Conclusion of Contracts by Modern Means of Communication,

Having witnessed the enormous development in the means of communi- cation and the current practice of using them to conclude contracts in order to ensure swift financial transactions and operations,

Having recalled the different statements of Muslim jurists concerning the conclusion of contracts verbally, in writing or through an intermediary,

Having considered the established principles that a contract between two parties requires majlis al-ʿaqd (attendance of the parties) – except in wills, del- egated wills, and agency – the compliance of the offer with the acceptance, the absence of any sign indicating the unwillingness of either party, the continuity of the offer and acceptance according to custom,

Resolves

First: If the contract is concluded between two parties who are not present in one place, and none of them can see the other physically, can hear his voice, and they are communicating to each other through writing or through an in- termediary, which includes telegraph, telex, fax and the computer screen, then, the contract shall be deemed to be completed when the offer is communicated to the offeree and the acceptance is communicated to the offerer.

Second: If the contract has been concluded between two parties at the same time, and they are in different places, as in the case of telephone and wireless, then this contract shall be deemed as a contract between two present parties. It abides by the original rules established by fiqh scholars which have been pointed out in the preamble of this resolution.

Third: If a person extending an offer through these instruments subjects his

offer to a specified period, he shall be bound to abide by his offer throughout this period and cannot retract from it.

Fourth: The preceding rules shall not cover the marriage contract because the presence of two witnesses is a necessary condition for its validity, nor shall it extend to the Ṣarf contract (exchange), because it requires taqābuḍ (receipt of possession) from both sides in their presence, nor to the Salam contract be- cause the immediate payment of the capital price is necessary for the validity of such contracts.

Fifth: In relation to the possibility of forgery, distortion or error, reference shall be made to general rules of legal evidence.

Indeed, Allāh is All-Knowing.