Contracts

Contracts

Understanding Islamic financial contracts in the platform.

Contract Lifecycle

stateDiagram-v2
    direction LR

    [*] --> Draft: 📝 Create
    Draft --> Active: ✅ Approve
    Draft --> Rejected: ❌ Reject
    Active --> Mature: 📅 Complete Term
    Active --> Suspended: ⚠️ Issue Found
    Suspended --> Active: 🔄 Resolve
    Mature --> Settled: 💰 Final Payment
    Mature --> Closed: 📋 Close
    Settled --> Closed: 📁 Archive
    Closed --> [*]

    note right of Draft: Shariah compliance review
    note right of Active: Contract in force
    note right of Suspended: Under investigation

    classDef green fill:#1a5f4a,color:#fff,stroke:#1a5f4a
    classDef blue fill:#1565c0,color:#fff,stroke:#1565c0
    classDef orange fill:#e65100,color:#fff,stroke:#e65100
    classDef red fill:#c62828,color:#fff,stroke:#c62828
    classDef gray fill:#455a64,color:#fff,stroke:#455a64

    class Draft blue
    class Active green
    class Mature green
    class Settled green
    class Suspended orange
    class Rejected red
    class Closed gray

Contract Types

Murabaha (Cost-Plus Sale)

const murabaha = await iof.contracts.create({
  type: "MURABAHA",
  counterparty: { id: "cpty_123" },
  terms: {
    assetDescription: "Commercial vehicle",
    purchasePrice: 50000,
    markup: 5000,
    totalPrice: 55000,
    tenure: 36, // months
    paymentFrequency: "monthly",
  },
});

Ijarah (Leasing)

const ijarah = await iof.contracts.create({
  type: "IJARAH",
  counterparty: { id: "cpty_456" },
  asset: { id: "asset_789" },
  terms: {
    rentalAmount: 1500,
    paymentFrequency: "monthly",
    duration: 24,
    maintenanceResponsibility: "lessor",
  },
});

Musharakah (Partnership)

const musharakah = await iof.contracts.create({
  type: "MUSHARAKAH",
  partners: [
    { id: "partner_1", capitalContribution: 60000 },
    { id: "partner_2", capitalContribution: 40000 },
  ],
  terms: {
    profitSharingRatio: { partner_1: 50, partner_2: 50 },
    lossSharingRatio: { partner_1: 60, partner_2: 40 },
    projectDuration: 12,
  },
});

Contract Operations

Create

const contract = await iof.contracts.create({ ... });

Retrieve

const contract = await iof.contracts.retrieve("contract_123");

Update

const updated = await iof.contracts.update("contract_123", {
  status: "active",
});

List

const contracts = await iof.contracts.list({
  type: "MURABAHA",
  status: "active",
  limit: 20,
});

Compliance Checks

All contracts are validated:

const validation = await iof.contracts.validate("contract_123");
// {
//   valid: true,
//   checks: [
//     { rule: "shariah_compliance", passed: true },
//     { rule: "jurisdiction", passed: true }
//   ]
// }

Next Steps

• Contracts API - Full API reference
• Compliance - Compliance rules