The Arguments for the Requirement of Contracts Being Settled in Cash in Differential Barter Transactions When the Exchanged Items are Measured or Weighed and are of Different Kinds Considerations

In many barter contracts, the disparity in the value of exchanged goods results in the quantity of the exchanged items (considerations) not being equivalent. All Shīʿa jurists agree that if the exchanged items in such a contract are “measured or weighed and are of the same kind,” the contract is considered “usurious (Arabic: ربا ,الربا، الربٰوة, lit.: usury, Romanized: ribā or al-ribā)” and therefore invalid. However, in addition, some jurists have also stipulated that a contract involving items exchanged that are measured by volume or weight, but are of different kinds, is valid only if the exchange is immediate (i.e., on the realization). This study, which utilized a narrative-revelatory method for analytical-critical data processing, concluded that the aforementioned transaction, when conducted on credit, is invalid and lacks legal effect under Islamic law. However, adhering to this condition in contracts with non-Muslims is not necessary. If the contract party is a Muslim, this transaction can be conducted in the form of two separate transactions: goods in exchange for money. Instead of a physical exchange of money, set-off (Arabic: تهاتر) can be utilized.