The Qur’ānic Concept of Ḥikmah: A Comparative Study of al-Fārābī, Ibn Sīnā, and al-Ghazālī

Abstract

Islamic jurisprudence (fiqh) has developed a comprehensive framework for regulating contracts of sale (bay) with the aim of ensuring justice, transparency, and genuine mutual consent in financial transactions. Within this framework, buyu fasidah (defective or irregular sales) refer to transactions in which the basic contract is permissible in principle but becomes defective because of a prohibited element, uncertainty, ambiguity, an impermissible condition, or another violation of Shariah requirements. With the rapid transformation of contemporary financial practices, several new forms of commercial transactions have emerged that raise important questions concerning the application of these classical juristic principles. This study examines selected contemporary manifestations of buyu fasidah, including modern forms of bay al-inah in Islamic banking, derivative transactions, certain credit-card arrangements, online sales involving goods not possessed by the seller, and selected cryptocurrency transactions. The study seeks to determine which established juristic principles are implicated in these practices and to explore Shariah-compliant alternatives where necessary. A descriptive-analytical methodology is employed, drawing upon classical works of Islamic jurisprudence alongside contemporary resolutions and standards issued by recognised fiqh academies and Shariah institutions. The study finds that many contemporary financial practices can be evaluated effectively through the classical principles governing gharar, jahalah, riba, possession and ownership, and contractual conditions. It further argues that Shariah-compliant alternatives, including murabahah, musharakah, mudarabah, ijarah, and salam, can provide viable mechanisms for addressing contemporary financial needs, provided that these contracts are implemented in accordance with their substantive Shariah requirements rather than merely adopting their formal structures.