or by following a recognized authority. Should he later discover that the practice was in fact unlawful, he is not required to relinquish those earnings, for he received them on the basis of an interpretative judgment.

Fifth: A number of Islamic banks have been founded on the muḍārabah (silent-partnership) model. They collect capital from depositors, invest it in development projects, or entrust it to qualified investors, acting as an agent for the owner of the capital for an agreed-upon fee. Muslims are encouraged to support and strengthen these banks so that they may stand as viable alternatives to usurious institutions.

Resolution of the International Islamic Fiqh Academy on Fulfilment of Promises and Murābaḥah to the Purchase-Orderer: Resolutions 40 and 41

The International Islamic Fiqh Academy, meeting in its fifth session in Kuwait from 1–6 Jumādā al-Ūlā 1409 AH (10–15 December 1988 CE),

Having examined the papers submitted by members and experts on “fulfilment of promises” and “murābaḥah to the purchase-orderer,” and after listening to the discussions held on both subjects,

decided:

First: A murābaḥah sale to the purchase-orderer is valid when it concerns a commodity that has already entered the ownership of the party commissioned to buy it and has been lawfully taken into his possession. The sale remains permissible provided that the risk of loss before delivery, and liability for return due to latent defect or similar causes after delivery, rest with the commissioned buyer, that all conditions of sale are fulfilled, and that no prohibitions apply.

Second: A promise—whether made unilaterally by the purchase-orderer or by the commissioned buyer—is morally binding on the promisor unless he has a legitimate excuse, and it is legally enforceable in court when it is contingent upon a cause,