The Implementation of Standard Form Contract in Financing Agreement of Sharia Banking in Islamic Law Perspective

Abstract

This study analyzed the implementation of standard form contract in financing agreement of Sharia banking in Islamic law perspective. This study aimed at discovering the process of mutual agreement on standard form contract of a financing agreement in Sharia banking. This study employed an empirical legal study. It was aimed at studying one or more social phenomena by analyzing it. This study found that during the process of mutual agreement on standard form contract between the bank and the customer, the element of ijab and qabul had been satisfied since the bank had made an offer and the customer accept the bank offer. However, it was found that the customer did not possess a right to change the content of the standard form contract. If there was a customer felt an objection, the requirement of a valid agreement is not satisfied since there is al-ikrah or compulsion factor in accepting the agreement. For the agreement is not met, the agreement will be considered as broken (fasid) and can be annulled.