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Glossary of Financial Terms: J

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Jafri

“The school in Islamic jurisprudence  of the Shia branch of Islam developed by Imam Ja’far al-Sadiq (d. 765) at about the same time its Sunni legal fiqh counterparts were being codified. It was distinguished from Sunni law “”on matters regarding inheritance, religious taxes, commerce, and personal status.”” Al-Sadiq is said to be highly respected by both Shia and Sunni Muslims for his great Islamic scholarship, pious character, and academic contributions. The schools of Sunni branch of Islam commonly referred to are Hanafi, Hanbli, Maliki, Shafi’i and, to a lesser extent, Zahiri.

Jahala

Lack of knowledge, ignorance.  In contracts, it refers to lack of information on the subject, or ambiguity the terms and conditions of the contract. Also refers to uncertainty, conjecture. An unspecified element in the quality, quantity or price of goods. Also known as Ju’hala.

Jahiliyyah

Lit: in the days of ignorance. The so-called pre-Islamic period. Muslims use the term to refer to the period just before the coming of Prophet Muhammad (pbuh) and more generally the state of affairs which characterised this period.

Jahl

See Jahala.

Ja`iz

Non binding contract.

Ji'ala

See Jua’lah.

Ji'alah

See Jua’lah.

Jihad

Striving or determined effort in the way of God. Literally, Jihad means doing one’s utmost to realise a goal. It is not the equivalent of war, for which Arabic and The Qur’an use ‘qital’. Jihad has a wider connotation and embraces every kind of striving in God’s cause.   Jihad as a generic word can be used even when the sought goals are not Islamic, for example in non-religious contexts.

Jizyah

Root meaning is compensation; the poll tax formerly paid by members of other religious groups in a Muslim state for protection of life and property and maintaining their own customs – Muslims on the hand had to pay Zakat as part of their religious obligation to help the poor and needy.

Ju'ala

See Jua’lah.

Ju'alal

See Jualah.

Jua’lah

Rendering a service against a reward; service Fee. Lit: stipulated price for performing any service. Performing a given task for a prescribed fee in a  given period. Technically applied in the model of Islamic banking by some. Bank charges and commission have been interpreted to be ju’alah by the Muslim jurists and thus considered lawful. Also known as Ju’l,J u’ala.  

Some Islamic Banks give loans with service charge. The Council of the Islamic Fiqh Academy established by the Organisation of Islamic Conference in its third session held in Amman, Jordan from 8 to 13 Safar 1407 H (11-16 October 1986), in response to a query from the Islamic Development Bank has resolved that it is permitted to charge a fee for loan related service offered by an Islamic Bank. However, this fee should be within actual expenditures and any fee in excess to actual service related expenses is forbidden because it is considered usurious. The service charge may be calculated accurately only after a certain period when all administrative expenditure has already been incurred e.g. at the end of the year. Hence, it is permissible to levy an approximate charge on the client, then, reimburse or claim the difference at the end of the accounting period when actual expenses on administration become precisely known.  A similar contract is ‘Ujrah‘ in which any work is done against stipulated wage or fee.

Jumhur Ulama

In accordance with opinion of most scholars.

Ju’hala

See Jahala.