E-Transaction: Issues and Challenges under Islamic Law

Abstract

The rapid expansion of electronic transactions has transformed commercial practices across the globe, raising complex legal, ethical and jurisprudential questions within the framework of Islamic law. This is due to several issues and challenges encountered in the transactions. The paper therefore examines the permissibility or otherwise of e-transaction under Islamic Law.  In order to achieve the aim and objectives of this research, the meaning of transactions, concept of e-, issues and challenges were briefly explained. The paper adopted a doctrinal method of research by conducting an in-depth analysis of primary and secondary sources of legal research. The paper critically examined and analyzed the arguments of contemporary scholars on the topic with a view to discovering whether or not e-transaction has a place under the Islamic Law. The paper revealed that Islamic Law is basically concerned with evidence i.e. proof and the satisfaction of the parties into a transaction. Regardless of the nature of transaction, there must be the two elements in operation. The absence of will erode and neutralise the Qur’anic requirements of two reliable eye witnesses before into transactional deals. It also revealed that such evidence and satisfaction of parties is sine quo-no that cannot be replaced or substituted, as clearly provided in the Qur’an and Sunnah. The writer’s major finding is that Islamic law has yardstick to measure compliance of any format, style and financial policies to Islamic law principle which set out to eradication garar -gambling, haram- prohibited and ribah- interest in all ramifications. Arising from this, the paper recommended that e-transactions are a welcome trend under Islamic Law, provided they comply with norms and tenets, especially when no human intervention or interruption has tainted/affected the transaction.