(13.5) Forged documents

(13.5) Forged documents

Question (1):

Documents were received concerning Murabaha credit according to which a sale contract was signed. The buyer could not receive the goods due to reasons beyond his control and also beyond the control of the Kuwait Finance House. In this case of non- arrival of goods, compensation is made by the insurance companies, later, they revert to the shipping company which have damaged the goods. It has confirmed safety of the goods and then declined to deliver them.

What would be the status of the goods for which forged documents were submitted? Would the Kuwait Finance House be held responsible bearing in mind that the client has admitted his responsibility for the behaviour of the exporter and warranted the appropriate execution of the operation?

Answer:

If a warrant is issued by the promising buyer to the effect that he would guarantee whatsoever shortcoming may occur from the exporter in fulfilling his obligations, such a warrant is in conformity with Shari'ah opinion. As such, the promising buyer would be liable to guarantee for any damages hereto, but he can not

be held bound for the purchase contract which he promised, because the subject matter of contract has been either nullified or defective.

Source:

Kuwait Finance House, Book of Fatwas on Economic Issues, part (1), and (2), Fatwa No. (63).

Question (2):

An arrangement was made with a client on (sugar) goods. After we opened the credit, documents were delivered to the Kuwait Finance House. Subsequently, according to the documents we informed the client that the goods are shipped and he may attend to conclude a An arrangement was made with a client on (sugar) goods. After we opened the credit, documents were delivered to the Kuwait Finance House. Subsequently, according to the documents we informed the client that the goods are shipped and he may attend to conclude a

Answer:

Claiming compensation is related neither to the mutual promise nor to the contracting procedures or delivery. Instead, it is a result of a previous warrant where the promising party has guaranteed the exporter for adequate performance and that the client would be liable for whatsoever consequences regarding the exporter's violation of specifications or restrictions which entail financial commitments that are known as "Darak" guarantee. The promising party's liability originates from the warrant but not the promise and subsequent procedures which include informing him to show up to sign the contract.

Source:

Kuwait Finance House, Book of Fatwas on economic Issues, part (1), and (2), Fatwa No. (448).

(14)

Registration and Documentation

(14.1) Transfer of ownership of goods from the seller to the buyer without registering them in the name of the bank

Question:

A property is purchased for the benefit of Kuwait Finance House, by virtue of initial sale contract, from a person in Kuwait. However, registration of the property in the ministry of justice was not completed. Meanwhile another person stepped to purchase the same property. Thence an initial contract was signed with him.

Is it permissible for the Kuwait Finance House to ask the seller of the property to directly register the property in the name of the purchaser or it is required to first register it with the Ministry of Justice in the name of the Kuwait Finance House and then re- register it in the name of the purchaser?

Answer:

There is no need to repeat registration, if the property has been sold after purchasing it and before the registration from the seller to the There is no need to repeat registration, if the property has been sold after purchasing it and before the registration from the seller to the

Source:

Kuwait Finance House, Book of Fatwas on economic Issues, part (1), and (2), Fatwa No. (332).