International Commercial Contracts in Islam

Abstract

International commercial contracts are regarded as fundamental instruments in facilitating economic exchanges and fostering trade relations among nations in today’s globalized world. These contracts are not only governed by the principles and rules of international law but are also influenced by cultural and ethical values within different legal systems, including Islamic law. In international law, foundational principles such as freedom of contract, legal security, and fairness in transactions are emphasized, while Islamic law focuses on legitimacy of transactions, honesty, and the avoidance of deception. A comparative analysis of the similarities and differences between these two legal systems in the context of commercial contracts contributes to a deeper understanding of the challenges and opportunities within the global market, and can pave the way for establishing fair and sustainable agreements in international trade. This study, entitled “International Commercial Contracts in International Law and Islamic Law”, has been conducted using a descriptive-analytical approach and through library-based research. The findings indicate that international commercial contracts, as vital instruments for facilitating global economic exchanges, are governed by distinct principles and frameworks within both international law and Islamic law. While international law emphasizes principles such as freedom of agreement, mutual obligations, and various dispute resolution mechanisms, Islamic law underscores moral values including justice, fairness, and the legitimacy of contract subject matter. Both systems recognize the essential elements for the validity of contracts and their diverse forms; however, Islamic law distinguishes itself through its unique approach, particularly in supervising the legitimacy and ethical foundations of transactions. Despite existing challenges, convergence between these two systems can enhance and strengthen international commercial relations while safeguarding the rights and interests of contracting parties.