SS 15: Ju'ala
What this standard is about
Ju'ala is a contract in which one party (the ja'il) offers a specified reward (the ju'l) to whoever achieves a set result, within a known or unknown period. It suits work that cannot be pinned down in advance, where a normal service contract (ijarah) would not fit. The standard does not cover employment contracts, leasing, maintenance contracts, or maintenance stipulations inside other contracts such as sales or istisna'a.
Why it exists
Some jobs cannot be described hour by hour: finding a lost item, brokering a deal, recovering a debt. Ju'ala allows payment for the result instead of the effort. The end result is specified; the exact work is not.
The key rules, simply put
- The reward and the desired result must be specified. The exact work to be done need not be.
- Uncertainty about the work does not invalidate the contract, because the result is what counts.
- The contract is not binding at first. Either the offeror or the worker may cancel it unilaterally.
- It becomes binding on the offeror once the worker starts the work.
- If the worker promises not to cancel during a set period, they must keep that promise.
An everyday example
A bank offers a $2,000 reward to anyone who recovers a specific overdue debt. A collection agent takes the job and recovers it. The agent earns the $2,000 — paid for the result, not for the hours worked.
Words to know
- Ju'ala — a reward-for-result contract.
- Ja'il — the one offering the reward.
- Ju'l — the reward itself.
- 'Amil — the worker.
Source
- AAOIFI Shariah Standard No. 15 — https://islamicmarkets.com/publications/jualah-scope-of-standard