Surah 1-2 - YasSarNal QuR'aN

Al-Baqarah (The Cow) | SAFEGUARDS FOR FINANCIAL TRANSACTIONSof the text or the precision of the wording. In the case of commercial contracts, forinstance, all potential influences are brought into play with respect to the two partiesto the contract, the witnesses and the executors, taking great care to consider alleventualities. Each point is thoroughly dealt with before moving on to the next,thereby avoiding unnecessary repetition, superfluous expressions, or the labouringof any aspect of the topic under discussion.In these highly legalistic discussions, the Qur’ān maintains the same quality ofliterary excellence and beauty as in those passages that deal with moral or religiousexhortations. Indeed, it is even more so, because precision is of the essence in thesecases and one inappropriate word could affect the whole meaning with unfortunateconsequences. Yet in its pioneering role in establishing these principles almost tencenturies before civil and commercial laws, as legal experts would willingly admit,the Qur’ān achieves its objective of penetrating the human mind and heart withimmense ease and elegance.Loan Arrangement and DocumentationLet us now take a closer look at the principles that Islam establishes with respectto loans: “Believers, when you contract a debt for a fixed term, put it in writing, and let ascribe write it down for you with fairness.” (Verse 282)The general rule, therefore, is that details of all fixed-term loans must be inwriting, for reasons that will become clear later, and that a third party must do therecording in order to ensure total impartiality and fairness. The writer is required torecord the agreed terms of the loan faithfully, without interference, bias or prejudice.He is obliged to do his job fully and competently as a duty to God who has blessedhim with the ability to write, and for which he will be appropriately rewarded: “Noscribe shall refuse to write as God has taught him. So he shall write.” (Verse 282)Having established that the terms of loans should be committed to writing by anindependent document writer, the sūrah goes on to explain how the writing shouldbe carried out: “... and let the one who incurs the liability i.e. the debtor] dictate; and [in sodoing] let him be conscious of God his Lord and not diminish anything of it. If he who incursthe liability is weak of mind or body, or unable to dictate himself, then let his guardian dictatewith fairness.” (Verse 282)The party incurring the liability, the borrower, is the one to dictate to the writer,acknowledging the amount borrowed and his commitment to the terms andconditions of the loan, as a safeguard against any injustice to him. As the weakerparty to the transaction, he would be less liable to alter the terms and conditions.This would reinforce the borrower’s commitment to the liability. For, were thecreditor to dictate, there would be no guarantee that he might not tamper with the400