Arabic (هبة) for a method of possession transfer whereby an asset (or any form of wealth) is gifted to another party for free- without anything in return or against no compensation (iwadh). It is a type of transaction in which one party doesn’t require any compensation for an object or a source of wealth he / she presents to the other party. Absence of compensation is a basic feature in this type of noncommutative transactions.
Shari’ah considers hibah (pl. hibaat) permissible (particularly according to the primary sources of shari’ah and ijma’a– consensus). However, contingency- i.e., making hibah contingent upon an action or facility renders hibah impermissible. For example, hibah is impermissible if al-wahib (gift provider, donor, etc) intends to facilitate injustice or to bribe people in positions of power or authority. Shari’ah also detests the use of hibah as a means to show off or to build a reputation for generosity.
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