Overview (Verses 282 - 283)
 
Having condemned usury as an unhealthy, inequitable economic practice, the sūrah resumes by outlining provisions governing trade, loans, loan securities, and usury-free lending and transactions.
 
As one reads these verses, one cannot fail to marvel at the superb style of the Qur’ān, which combines precise legal language with eloquence and great literary merit. It achieves that delicate and elusive balance between clarity of meaning and pungency of expression, thereby gently but most effectively enhancing the appeal of the legal provisions to the religious conscience, without prejudicing the moral stance of the text or the precision of the wording. In the case of commercial contracts, for instance, all potential influences are brought into play with respect to the two parties to the contract, the witnesses and the executors, taking great care to consider all eventualities. Each point is thoroughly dealt with before moving on to the next, thereby avoiding unnecessary repetition, superfluous expressions, or the labouring of any aspect of the topic under discussion.
 
In these highly legalistic discussions, the Qur’ān maintains the same quality of literary excellence and beauty as in those passages that deal with moral or religious exhortations. Indeed, it is even more so, because precision is of the essence in these cases and one inappropriate word could affect the whole meaning with unfortunate consequences. Yet in its pioneering role in establishing these principles almost ten centuries before civil and commercial laws, as legal experts would willingly admit, the Qur’ān achieves its objective of penetrating the human mind and heart with immense ease and elegance.
 
Loan Arrangement and Documentation
 
Let us now take a closer look at the principles that Islam establishes with respect to loans: “Believers, when you contract a debt for a fixed term, put it in writing, and let a scribe write it down for you with fairness.” (Verse 282)
 
The general rule, therefore, is that details of all fixed-term loans must be in writing, for reasons that will become clear later, and that a third party must do the recording in order to ensure total impartiality and fairness. The writer is required to record the agreed terms of the loan faithfully, without interference, bias or prejudice. He is obliged to do his job fully and competently as a duty to God who has blessed him with the ability to write, and for which he will be appropriately rewarded: “No scribe shall refuse to write as God has taught him. So he shall write.” (Verse 282)
 
Having established that the terms of loans should be committed to writing by an independent document writer, the sūrah goes on to explain how the writing should be carried out: “... and let the one who incurs the liability i.e. the debtor] dictate; and [in so doing] let him be conscious of God his Lord and not diminish anything of it. If he who incurs the liability is weak of mind or body, or unable to dictate himself, then let his guardian dictate with fairness.” (Verse 282)
 
The party incurring the liability, the borrower, is the one to dictate to the writer, acknowledging the amount borrowed and his commitment to the terms and conditions of the loan, as a safeguard against any injustice to him. As the weaker party to the transaction, he would be less liable to alter the terms and conditions. This would reinforce the borrower’s commitment to the liability. For, were the creditor to dictate, there would be no guarantee that he might not tamper with the terms and conditions of the loan to his advantage. Furthermore, the sūrah appeals to the borrower’s conscience to be scrupulous and faithful in dictating the terms of the loan. It goes on to advise that if the borrower is feeble-minded, under age, or unable to dictate through ignorance or an impediment of speech, or any other reason, his guardian, attorney or trustee, may do so on his behalf, showing the same, if not greater, scrupulous fairness.
 
The sūrah gives detailed instructions concerning the witnessing of the contract: “Call in two of your men to act as witnesses, but if two men are not available, then a man and two women, whom you consider acceptable as witnesses, so that if either of them should make a mistake, the other will remind her.” (Verse 282)
 
For the contract to be valid, it must be witnessed by two men or, if these are not readily available, one man and two women, all of whom should be of good standing in the community and deemed “acceptable as witnesses” by both parties. The reason for recommending men witnesses in the first instance is that, in a Muslim society, the majority of marketplace attendants are normally men, since women, generally, do not have to seek work to earn a living and their main preoccupation is the family home and the raising of society’s new generation. Nevertheless, if two men cannot be found to witness a contract, a man and two women will do. But why two women? Since this is a legal matter, the sūrah does not leave the answer to speculation; and explains: “... so that if either of them should make a mistake, the other will remind her.” (Verse 282)
 
Such a mistake may occur for a number of reasons, such as lack of experience or knowledge, or failure to understand the subject matter or the ramifications of the contract. A woman’s impulsive nature tends to make her impressionable and more easily influenced or swayed. This emotional, sympathetic nature is necessary and, indeed, advantageous for women in their role as mothers. Human nature being indivisible, it would be present whenever women are called upon to witness or judge anything requiring deliberation, reflection and strict impartiality. Having two women rather than one, provides a greater assurance that they will balance each other and provide an objective testimony.
 
The sūrah calls on people not to refuse to act as witnesses if invited to do so, as it did with the writer earlier, saying: “Witnesses must not refuse when they are called in.” (Verse 282) It is an obligation, rather than a privilege, because it is a means of establishing justice and preserving rights. Witnesses must carry out their duty willingly, honestly and without any condescension or deference towards either of the parties.
 
The sūrah moves on to another, more general, aspect of legal and business transactions: “Do not be averse to writing down debts, be they small or great, together with the time when they fall due; that is more equitable in the sight of God and lends greater credence to the testimony and is more likely to spare you any doubt.” (Verse 282)
 
The text displays a remarkable perception of human nature, as people are often inclined to judge that certain small debt transactions are not worth writing down, but the sūrah stresses the fact that recording all debt transactions is seen by God as preferable and more fair. A written contract gives greater force to the testimony of the witnesses, since a written statement carries more weight than one based totally on memory, and it “is more likely to spare you any doubt”. Thus, the wisdom underlying these instructions becomes clear and they appear more convincing, practical and reassuring.
 
In spot trading, executed immediately and frequently, there is no need for writing dawn the details and the mere presence of witnesses will suffice: “In the case of a commercial deal transacted on the spot, you shall incur no sin by not writing it down. Have witnesses when you make business deals.” (Verse 282)
 
At face value, the statement seems to allow the concession of not recording spot transactions while making it a condition that witnesses should be present; but, according to some considered opinion, the latter is strongly recommended rather than obligatory.
 
Nevertheless, the weightier view is that witnesses are necessary for spot trading as well.
 
The sūrah proceeds to specify the rights of contract writers and witnesses, assuring them of the protection they deserve: “But let no harm be suffered by scribe or witness; if you do [harm them], that is sinful on your part. Have fear of God, for it is God who teaches you. God has knowledge of all things.” (Verse 282)
 
Scribes and witnesses should come to no harm in the course of fulfilling their obligations towards God, and any wrongdoing they may suffer would be a gross violation of God’s law. This is a necessary precaution, for scribes and witnesses often incur the displeasure of one or the other of the contracting parties and must, therefore, be protected and reassured so that they fulfil their obligations fairly, honestly and with absolute objectivity.
 
Finally the sūrah, in keeping with the Qur’ānic way of igniting the inner powers of the human conscience, calls on believers to fear God and reminds them of His grace and favour in giving them knowledge and understanding, so that they may conduct their affairs in accordance with His will and guidance: “Have fear of God, for it is God who teaches you. God has knowledge of all things.” (Verse 282)
 
The sūrah rounds off the subject of loans by dealing with the special case of borrowing money while on a journey, when scribes may be difficult to find. Under these circumstances, to facilitate the transaction and ensure repayment of the loan, a verbal agreement is valid and binding provided a tangible article is given, and accepted, as security for the loan: “If you are on a journey and cannot find a scribe, pledges taken in hand [are sufficient]. If you trust one another, let him who is trusted fulfil his trust, and let him fear God, his Lord.” (Verse 283)
 
Both creditor and borrower are trustees: the former entrusted with the security and the latter with the money he has borrowed, and they are both called upon to fulfil their trust and fear God, the ultimate master and ruler and judge over all.
 
We do not subscribe to the view advanced by some jurists that this ruling supersedes the one given in the preceding verse which makes the writing down of loan agreements obligatory. We believe that written documentation is essential except when the two parties are on a journey, in which case security must be provided for the loan and both parties are under an obligation to fulfil their part of the verbal agreement.
 
With all these principles in mind, the sūrah speaks about giving evidence in cases of litigation: “You shall not withhold testimony, for he that withholds testimony is sinful at heart. God has full knowledge of all you do.” (Verse 283)
 
Transgression in this instance is attributed to the heart, where man’s intention to do or not to do things originates, but the statement contains a veiled threat in stressing that “God has full knowledge of all you do.” God will certainly recompense people according to His knowledge which uncovers any sinful intention.