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- Title
The Possible Disputes in Islamic Banking in Tanzania and its Legal Remedies.
- Authors
Mzee, Mzee Mustafa
- Abstract
Disputes in Islamic banking as in conventional banking is inevitable. The contractual relationship between Islamic bank and its customers is another reason for possible existence of dispute in Islamic banking. Once when dispute arises it must be solved immediately without affecting the relationship between two contracting parties. Therefore, this study aims at analyzing the possible disputes in Islamic banking in Tanzania with their possible remedies. The study confines to the three common Islamic banking products which are Diminishing Musharakah for house financing, Murabahah for car financing and Ijarah Mawsufah fi al-Dhimmah for services financing. The methodology adopted in this paper is based on the content analysis of legislations, decided cases, leading textbooks and journal articles. The findings of the study show that there is possibility for Islamic banking dispute to raise into the lack of free consent, breach of contract, defaults to pay monthly installment, breach of duty of care, purchase of a property from non-owner, transfer of house without bank's consent, frustration and house demolition. The study also finds that, for those possible disputes their remedies include; the recession of the contract, sue for specific performance, sue for the damages, sue for interest, sale of the property and sue for unpaid price. However, the study recommends the removal of interest as remedies since it goes against Islamic law and Islamic banking documentation should cover Islamic principles.
- Publication
Journal of Islamic Banking & Finance, 2022, Vol 39, Issue 2, p77
- ISSN
1814-8042
- Publication type
Academic Journal