AAOIFI Shari'ah Standard No. 15

Ju’alah — practice questions

الجعالة

19 questions in the bankMultiple choice

Sample questions from the AAOIFI Test question bank on Shari'ah Standard No. 15. Pick an answer to check it and read the explanation.

Sample questions

Question 1 of 3

Under Shari’ah Standard No. (15), which statement correctly describes the binding nature of a Ju’alah contract?

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Correct answer: B. Clause 4/1: In principle, Ju’alah is not a binding contract, and the offeror (Ja’il) or the worker (’Amil) may revoke it unilaterally; however, it becomes binding on the offeror when the worker commences work. If the worker undertakes not to revoke during a specified period, he is bound by that undertaking. Acceptance is not a condition of the contract (Clause 5/2), so neither publication nor written acceptance makes it binding, and after commencement an offeror who prevents the work must pay reasonable wages (Clause 6/2).

Question 2 of 3

Which of the following features distinguishes Ju’alah from Ijarah under Clause 7 of the Standard?

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Correct answer: D. Clause 7: Ju’alah is distinguished from Ijarah in that it is valid despite uncertainty of the work, the determination of the required result being sufficient; it does not require acceptance; entitlement to compensation depends on completion of the work and delivery of the result; it is valid even if the other party is not known; and, as a rule, it is terminable, whereas Ijarah is binding. Clause 3 explains that this is why Ju’alah suits activities for which Ijarah, requiring clearly specified work, is unsuitable.

Question 3 of 3

A company offers a Ju’l to any contractor who discovers commercial water reserves on its land within 12 months. At the end of the 12 months, the contractor’s drilling has not yet reached the reserves, but the result is close to being realised. What is the position?

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Correct answer: A. Clauses 5/3/1/2 and 5/3/1/3: It is permissible to stipulate that the work be done within a specified period, after which the worker is not entitled to compensation, except where the period is over and the result is close to realisation, in which case the period is automatically extended. Where the period ends and the worker has done work that benefits the offeror, he is entitled to reasonable wages (Ujrat al-Mithl). Entitlement to the full Ju’l depends on realisation of the result, not on time spent (Clause 7/3).

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