A contract provided that it was to be governed by the law of England and Wales, but ‘subject to the principles of the Glorious Sharia’a’ It was a loan agreement made under the system of Morabha. The defendant said that since the agreements charged interest which was forbidden as Riba and contrary to the Sharia, the agreements were void.
Held: The governing law was that of England and Wales and the agreements were valid. The reference to the law of Sharia meant that the agreement was to be read so as to reflect the principles of Sharia but this could not work to operate against the very basis of the contract.
Judges:
Lord Justice Laws Lord Justice Potter Lady Justice Arden
Citations:
[2004] EWCA Civ 19, Times 03-Feb-2004, Gazette 26-Feb-2004, [2004] 1 WLR 1784
Links:
Jurisdiction:
England and Wales
Cited by:
Cited – Halpern and Another v Halpern and others ComC 24-Mar-2006
The deceased parents, being orthodox Jews, had first made standard wills and then made provision accoding to Jewish law. A dispute after the second death was referred to a Beth Din arbitration. After an initial resolution, various distributions were . .
Cited – Halpern and others v Halpern and Another (No 2) CA 3-Apr-2007
The parties had settled by compromise a dispute about the implementation of a will before the Beth Din. It was now said that the compromise agreement had been entered into under duress and was unenforceable. The defendant said that rescission could . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 09 June 2022; Ref: scu.192292