Maqasid al-Shariah and Stipulation of Conditions (Shurut) in Contracts

One of the maqāṣid al-Sharīʿah (objectives of the Sharīʿah) with regard to wealth is ensuring that it circulates smoothly in society. Among the means that the Sharīʿah uses to achieve that objective is its strong encouragement of undertaking necessary types of commercial activities and its legislation of various types of contracts in order to ensure orderly transfers of wealth on the basis of mutual consent. The contracts validated in the Qur’ān and Sunnah are not exhaustive, and new transactions can be introduced as long as they do not contradict the principles of the Sharīʿah. The underlying principle is that of permissibility (ibāḥah). Likewise, the right to stipulate conditions (ḥurriyyat al-ishtirāṭ) in a contract is also acknowledged in line with the freedom of entering into contracts (ḥurriyyat al-taʿāqud). Those facilities are acknowledged as a means of realizing maṣlaḥah (benefit) and preventing harm (mafsadah) to the contracting parties.