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The Islamic legal system
1By:- Loai Nadi
Law and
contract for CBE
Group4

By:- Loai Nadi 2
Conflicts occur very often during a construction
project. That is the nature of the construction industry
everywhere. The needs of the owner, the
professionalism of the architect, & the performance of
the contractor; all of these factors come together and
form an environment that can be described as a
conflict sensitive environment. Conflicts usually come
in the form of either a change order, or it can also grow
to a claim.

By:- Loai Nadi 3
The middle east countries have experienced a rapid
growth in constructions. The economical needs have
driven the industry to grow firmly, and have attracted
contractors from all around the world. However, this
need for international constructions agencies was not
accompanied with changes in the judicial systems that
govern the construction contracts. Construction firms
have often found their ignorance in the judicial systems
one of the major problems in executing projects in the
middle east countries .

By:- Loai Nadi 4
East & west
there are several things that east and west differ in their
judicial systems. Culture and history play the major role
in forming the judicial system. While many of the
industrial countries around the world, use the judicial
system extracted from the old British empire law. Some
others based their judicial system on the French laws.
However, the biggest source of law in the middle east is
the.
Islamic law

By:- Loai Nadi 5
Jurisdiction Systems
As explained earlier, Islam is the main source
for most of the laws and regulations in the
middle east countries. Some Islamic countries
have constitutions that are combined of laws
from different judicial systems. However, even
in those countries, Islamic laws remain the
main source for most of the regulations. In
other Islamic countries, Islamic laws are the
only source for regulations and rules.

By:- Loai Nadi 6
It is very common to call Islamic law shari 'a.
Islamic law or shari’a can be defined as : the rules
and laws that are extracted from Qur'an, sunna, or
ijma .
 ijma is simply the agreement of a big number of
Islamic scholars on a certain issue .

By:- Loai Nadi 7
The Islamic law “shari’a” has different schools,
and hence it differs from a place to another.
While Islamic law “shari’a” is one law governing
all Muslims, the application of shari’a to actual
legal problems will depend on the country in
which the problem arises. Many Islamic
countries have adopted civil codes.

By:- Loai Nadi 8
Basic Contract Law Under Islamic Law.
Qur’an – the holy book - elevates contractual
undertakings to the level of religious duty .
one of the verses of Qur'an states, “ye who believe
fulfill your covenant”.
Because the principles of Qur'an are eternal, the
commandment to fulfill one’s contracts applies to
modern contracts .

By:- Loai Nadi 9
However, Qur'an forbids certain types of contracts.
Qur’an –for instance - forbid “riba”.
Riba was translated as usury, augmentation, or
accretion.
some scholars hold that interest is disallowed
altogether, while more liberal scholars suggest that
interest can be justified as “compensation for
inflation” or the decline in real value of money or
goods .

By:- Loai Nadi 10
Shari’a contains options of rescission . this option
allows an injured party to rescind a contract where
the quantity or quality of goods or services, as
described in the contract are not met . shari’a
requires a breaching party to compensate the
injured party. However, Islamic law accepted valid
grounds for rescinding a contract .

By:- Loai Nadi 11
Types of conflicts….
Conflicts are natural in construction projects . as mentioned
earlier, conflicts can be in the form of just a change order, but it
also can grow to become a claim . change orders in general are
not a big deal, if the owner of the project acknowledges them.
In most of the cases, contractors manage to convince the owner
to accept the change order. However, a higher cost change
order is less likely to be accepted easily by the owner. When, the
cost of the change order becomes higher, it is more feasible for
the owner to take the risk of going to court to finalize this .

By:- Loai Nadi 12
Conflicts that grow to claims can be resolved either using
arbitration or going to litigation. Experts in the construction
industry understand that as far as you go in a construction
claim, as much risk and cost get higher .
there are, in general, three resolution approaches from a project
manager’s viewpoint: withdrawal, compromise, problem solving .
success in construction projects mainly depends on how well
project managers handle conflicts .

By:- Loai Nadi 13
Claims Management
The term “claims management” is a bit new for the
middle east construction industry. Actually, it started
to be part of the industry terminology when huge
constructions started to execute by international
contractors .

By:- Loai Nadi 14
Arbitration in the Middle East
The rules of Shari’a, or Islamic law, regulate the conduct
of arbitration.
The shari’a arbitration has four elements:
1. There must be a dispute.
2. It must be the will of two competent parties to submit the
dispute to an arbitrator.
3. The arbitrator must have the qualifications of a judge.
4. the arbitrators must agree to conduct the arbitration.
Egypt, while still recognizing Shari’a as the primary source of law,
has developed an additional statutory system of arbitration .

Group4
By:- Loai Nadi 15
1. Loai
2. Suleiman
3. Mohammad
4. Mahmud
5. Abed
6. Maze
7. Dina
Special thanks to Mr. Suleiman for proof reading these
notes.

�ݺ�ߣ

Law2

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