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Commercial Contracts in Muslim Countries of the Middle East: A Comparison with the United States

  • Jacqueline McCormack
Published/Copyright: February 28, 2019

Abstract

Outside of the common law and civil law legal traditions, what is termed “Islamic law” forms one of the world's largest legal systems. There are more than one billion Muslims world-wide, and millions of those Muslims populate some of the world's richest trading zones. As of 2005, the Gulf Cooperation Council (G.C.C.), comprised of Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, and the United Arab Emirates, was the United States' fifth largest trading partner.


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Jacqueline MacCormack is a student at University of San Diego School of Law, San Diego, California and is currently visiting at Georgetown University Law Center, Washington, D.C. The author would like to thank Thomas McCormack for his patience and encouragement throughout the preparation of this article and Steven and Joanne Magowan for their continued love and support.


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    Id.

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    Id.

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    Id. at Preamble.

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  57. 57

    United States Constitution, Art. VI, Sec. 1, Clause 2

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    Akaddaf Fatima , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 6.

  59. 59

    C.I.S.G., art. 1, sec. 1.

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    Id. at. art. 4.

  61. 61

    Id. at art. 4(a).

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    Id. at art. 6 & art. 9.

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    Id.

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    Id. at 19.

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    Id. at 7.

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    Posner Richard A. , The Law and Economics of contract Interpretation, at 4.

  70. 70

    U.C.C. §2-509

  71. 71

    U.C.C. §2-303

  72. 72

    Delayed performance and defective goods are common examples of these potential problems.

  73. 73

    Posner , The Law and Economics of contract Interpretation, at 4.

  74. 74

    Bix , Contract Law Theory, at 18.

  75. 75

    U.C.C. §2-718

  76. 76

    Id.

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    Posner Richard A. , The Law and Economics of contract Interpretation, at 3.

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    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 20.

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    Id. at 21.

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    Id.

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    Id.

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    (see, Mexican Civil Code, Book Four Obligations, art. 1851 –duplicate of French Civil Code, translated by Prof. Vargas).

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    Qur'an 16:91

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    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 17.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 284.

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    Qur'an 4:33; see, Hassan, Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at n.6.

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    Id.

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    Id.

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    See, UAE Civil Code, art. 568

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    Id. at 288.

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    Id.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 287.

  104. 104

    UAE Civil Code, art. 582

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    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

  106. 106

    See, UAE Civil Code, art. 586.

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  108. 108

    United Nations Convention for the International Sale of Goods, art. 9

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    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 31.

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    Id. at 26.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at n.6.

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    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 26.

  113. 113

    Id. at 25.

  114. 114

    U.C.C. §2-201

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    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 28.

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    Id at 26.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 288.

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    Id.

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    Id.

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    Id.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality at 289.

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    Id at 289.

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    Id.

  124. 124

    Qur'an 2:275

  125. 125

    Qur'an 30:39

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    Qur'an 3:130

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 290.

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    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

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    Taylor , Islamic Banking-The Feasibility of Establishing an Islamic Bank in the United States, at 388.

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    Id. at 391.

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    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 49.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 278.

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    Id. at 279.

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    Id. at 280.

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    Aquinas Thomas , Summa Theologica, II, q.2, q.77, art. i.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality at 280.

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    Id.

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    Id. at 292.

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    Id. at 281.

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    Id. at 261.

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    Id. at 55.

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    Egypt Civil Code, Article 226

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    Akaddaf, Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 54.

  145. 145

    See, Richard Price & Essam Al Tamimi, United Arab Emirates Court of Cassation Judgments: 1989–1997, at 51–52 (1998).

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    United Nations Convention for the International Sale of Goods, section III, art. 78.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 291.

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    Id.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 292.

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    Id.

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    Id. at 293.

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    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

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    Uniform Commercial Code, 2-204(3).

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    United Nations Convention for the International Sale of Goods, art. 55

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    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

  156. 156

    Id.

  157. 157

    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

  158. 158

    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality at 260.

  159. 159

    Id. at 285.

  160. 160

    Id. at 286.

  161. 161

    Id.

  162. 162

    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality at 260.

  163. 163

    Id.

  164. 164

    Id. at 262, n.6.

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    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality at n.6.; see, Aristotle, Nicomachean Ethics V.

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    Id.

  167. 167

    Aquinas Thomas , Summa Theologica.

  168. 168

    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 262.

  169. 169

    Id. at 283.

  170. 170

    Qur'an LXXXIII: 1–5

  171. 171

    Code des Obligations et Contrats (Morocco), art. 477

  172. 172

    United Nations Convention for the International Sale of Goods, Preamble.

  173. 173

    Uniform Commercial Code, 2-103[j], 2-305(2), 3-306(1), 2-311(1), 2-328(4).

  174. 174

    Qur'an 2:283

  175. 175

    United Nations Convention for the International Sale of Goods, Art. 8(3)

  176. 176

    UCC 2-202

  177. 177

    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 44.

  178. 178

    Ottoman Civil Code of 1877, art. 1160–1075

  179. 179

    Moroccan Code of Obligations and Contracts of 1913, art. 387

  180. 180

    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 44.

  181. 181

    Saudi Arabian Companies Regulations of 1965, art. 13

  182. 182

    Iranian Code of Civil Procedure of 1983 (not yet formally approved)

  183. 183

    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 45.

  184. 184

    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

  185. 185

    Uniform Commercial Code, 2-615(a).

  186. 186

    United Nations Convention for the International Sale of Goods, art. 79(1).

  187. 187

    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

  188. 188

    Id.

  189. 189

    Uniform Commercial Code, 2-314(2)(c)

  190. 190

    Sloane , The Status of Islamic Law in the Modern Commercial World, at 743.

  191. 191

    United Nations Convention on the International Sale of Goods, art. 74.

  192. 192

    Uniform Commercial Code, 2-715; 2-719(3).

  193. 193

    Hassan , Contracts In Islamic Law: The Principles of Commutative Justice and Liberality, at 287.

  194. 194

    Id.

  195. 195

    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 35.

  196. 196

    Id. at 37.

  197. 197

    French Civil Code, Art. 1144

  198. 198

    Id.

  199. 199

    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 38.

  200. 200

    Iranian Civil Code, art. 268

  201. 201

    Moroccan Code, art. 236

  202. 202

    See, Manuel de Procedere Civile 181 (Casablanca 1886)

  203. 203

    See, Commercial Law of Iran

  204. 204

    Uniform Commercial Code, art. 2-716

  205. 205

    Akaddaf , Application of the United Nations Convention on Contracts for International Sale of Goods to Arab Islamic Countries: Is CISG Compatible with Islamic Law Principles, at 34.

  206. 206

    UCC 2-716

  207. 207

    United Nations Convention for the International Sale of Goods, art. 46 & 62

  208. 208

    Klerman Daniel , The Emergence of English Commercial Law: Analysis Inspired by the Ottoman Experience, USC Center in Law, Economics and Organization Research Paper No. C08-19, University of Southern California Law School pg. 17

  209. 209

    Id. at 17.

Published Online: 2019-02-28
Published in Print: 2009-03-01

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