Islamic banking has great potential

Experts see bright future, say industry needs to be innovative and competitive to reap benefits 

Islamic banking is one of the fastest-growing segments in the world, but it needs to be innovative and competitive to realise the true growth potential in years to come, experts say. 

Addressing the fifth World Islamic Retail Banking Conference here on Tuesday, top executives of leading Islamic banks underlined the need to address the challenges being faced by the industry to increase its share in global banking industry.

“There is urgent need to develop Shariah regulatory framework to realise the true potential of Islamic retail banking,” said Adnan Yousif, president and chief executive of the Al Baraka Banking Group.

He delivered the keynote speech entitled “The Changing Retail Banking Landscape” and said the lack of awareness about Islamic banking products is one of the main challenges, which needs to be settled to promote the industry.

“The media can play an important role to develop awareness about Islamic banking industry,” he said, adding that Bahrain has already launched good initiatives including Islamic finance as a subject at the secondary level, colleges and universities.

Yousif also hailed Dubai’s recent initiatives to become a capital of Islamic economy and said local banks — Dubai Islamic Bank, Noor Islamic Bank, Mashreq and Al Hilal Bank, among others — are doing good to promote Islamic retail banking.

Criticising conventional banking, he said it is just compiling “toxic loans” or “bad debt”, which is not beneficiating the economy.

“I wish we could have a huge Islamic bank in the Arab world that could help develop big industries,” he said.

Asad Batla, head of the consumer banking division of Bank Nizwa and who was chairman for the first day of the conference, said Islamic banking industry is relatively new and “we need to give our best to promote this segment”. 

Abdulrahman Turki, general manager of retail banking at Bahrain Islamic Bank, said Islamic banking is doing good compared to conventional modes of business. However, he stressed the need to create awareness about Islamic banking through various channels to increase its share in the industry.

“We are one of the top Islamic banks operating in Bahrain with 14 branches and have launched couple of good initiatives to promote Islamic banking in the country through conferences and meetings,” he said.

The annual CEO roundtable, entitled “Developing Islamic Retail Banking, reaching to the retail target segments: Back to Basics”, highlighted the basic practices and the potential of immense opportunities that Islamic banking offers to the global retail banking sector.

Jordan Islamic Bank’s vice-chairman and CEO Musa A. Shihadeh explained the reasons why Islamic banks failed to build up the assets and said industry need to bring down the cost of funding to competitive levels.

Dr Jamil El Jaroudi, CEO of Bank Nizwa, said the industry is doing well and not piling up “toxic loans” like conventional banks.

Irfan Siddiqui, president and CEO of Meezan Bank, shared the success story of the bank and said about 70 per cent of customers are still untapped and there is huge potential to promote Islamic banking across the globe.

Wasim Saifi, CEO of Standard Chartered Saadiq Berhad and global head of Islamic Consumer Banking of Standard Chartered Bank, said Islamic banking should be high on bankers’ agenda to gain more share of the banking industry.

“Substantial opportunities exist in East and West Africa and the next decade is very important for the industry. Major Muslim countries need to realise the true potential of Islamic banking,” he said.

Sultan Choudhury, executive board director and managing director of the Islamic Bank of Britain, said the UK is a very integrated market for the banking industry and the bank more dependent on technology and Internet banking. He said non-Muslims are also strong customers for Islamic banking products.

Moinuddin Malim, CEO of Mashreq Al Islami, said Islamic banking has done a good job compared to conventional units, however the quality of service, education and innovasion are keys to promote the industry.

In his presentation John Chang, head of consumer banking at Noor Islamic Bank, enlightened the audience on how to achieve total organisational alignment. Renowned Shariah scholar Shaikh Nizam Yaquby acknowledged the queries of the participants during the annual open fatwa session, which was moderated by Professor Humayun Dar, chairman of Edbiz Corporation.

The other participating Shariah scholars and experts were Dr Muhammad Al Bashir Muhammad Al Amine, group head of Shariah at Bank Alkhair; Shaykh Haytham Tamim and Momin Hyat, Shariah scholar and manager of Shariah Governance and Compliance at Mashreq Al Islami.

R. Lakshmanan, chief executive of Sakana Holistic Housing Solutions, focused on the different models used to understand housing finance such as Ijara, Musharaka and Murabaha.

Tamas Erni, managing partner at Loxon Solutions, addressed the issues pertaining to credit risk origination through IT platforms in his presentation.

Imran Samee, head of the Consumer Banking Division at Bank Islam Brunei Darussalam, presented the Case Study Brunei on Islamic retail banking, emphasising on reposition, distribution and risk management issues.

The first day of the conference marked its closure with the networking reception, which also paved the way for the inauguration of the Global Islamic Finance Awards, which was hosted by WIRBC and organised by Edbiz Consultancy late on Tuesday.

(Khaleej Times / 27 Nov 2013)

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First Eurozone Islamic Bank Planned For Luxembourg

The Eurozone is to get its first Islamic bank after a consortium of Gulf businessmen and a UAE royal family announced an agreement to set up a new lender headquartered in Luxembourg.

Eurisbank will have a start-up capital of 60 million euros and is set to have branches in Paris, Brussels, The Netherlands and Frankfurt. The bank will offer services in retail, corporate and private banking.

The consortium – which also includes an unnamed bank – plans to launch the new lender in the fourth quarter of 2014.

Deloitte’s feasibility study of the bank demonstrated high return on investment, taking advantage of being the first Islamic lender to be based in the Eurozone.

The investors and Deloitte have concluded a meeting with the CSSF – Luxemburg’s Supervisory Authority – which has welcomed the idea and gave directions to prepare the documents required to obtain a banking license.

“As the worldwide Islamic finance industry moves from niche to critical mass while Europe is becoming an attractive and promising market that is not yet served by Shari’ah-compliant banking services, considerable potential exists for the expansion of Islamic Finance,” said Marco Lichtfous, partner in Deloitte Luxembourg.

“The global market for Islamic financial services is estimated at USD 1.8 trillion, and by opening new markets the numbers are set to grow significantly in the years ahead,” he added.

Deloitte and Excellencia Investment Management have been assigned to conduct all procedures and to finalise the establishment of Eurisbank.

“A large untapped customer base with more than 20 million Muslims in the EU represent a significant market growth potential for Islamic Finance, and with the strong support of the European governments and regulatory authorities of the Islamic Finance Model, the unification of the regulatory framework within the European Union is a significant advantage to serve Muslim and non-Muslim communities across Europe,” said Ammar Dabbour, Managing Partner in Excellencia Investment Management.

“With low penetration rates of Islamic banking products in Europe resulting from a lack of supply and the strong demand from Muslim clients for Shari’ah-compliant services which are not appropriately addressed by current banking offering, Eurisbank is devised to supply a much needed spectrum of services and products unique to their audience.

(Gulf Business / 26 Nov 2013)

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Quran verses on Riba (usury / interest)

Quran and Sunnah are two major sources of Shariah which form the basis of Islamic finance. Below are some verses from the Holy Quran related to the prohibition of Riba (usury/interest):

(1) Those who eat Riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: "Trading is only like Riba (usury)," whereas Allah has permitted trading and forbidden Riba (usury). So whosoever receives an admonition from his Lord and stops eating Riba (usury) shall not be punished for the past; his case is for Allah (to judge); but whoever returns to Riba (usury), such are the dwellers of the Fire - they will abide therein.
(Quran, Al-Baqarah, Chapter 2, Verse 275)


(2) Allah will destroy Riba (usury) and will give increase for Sadaqat (deeds of charity, alms, etc.) And Allah likes not the disbelievers, sinners.
(Quran, Al-Baqarah, Chapter 2, Verse 276)


(3) O you who believe! Be afraid of Allah and give up what remains (due to you) from Riba (usury) (from now onward), if you are (really) believers.
(Quran, Al-Baqarah, Chapter 2, Verse 278)


(4) O you who believe! Eat not Riba (usury) doubled and multiplied, but fear Allah that you may be successful.
(Quran, Ali-Imran, Chapter 3, Verse 130)

(5) And their taking of Riba (usury) though they were forbidden from taking it and their devouring of mens substance wrongfully (bribery, etc.). And We have prepared for the disbelievers among them a painful torment.
(Quran, An-Nisa, Chapter 4, Verse 161)

Islamic finance gains popularity across the globe

A flourishing industry

Islamic finance is gaining popularity across the globe and Islamic banking assets are expected to reach $1.4 trillion this year, according to a report.

The share of Islamic assets in core Muslim majority markets is steadily rising with Saudi Arabia’s reaching 49 per cent and various other markets expanding with double-digit growth, according to the report released by Thomson Reuters ahead of the Global Islamic Economy Summit, starting today in Dubai.

The existing Islamic finance market stands at an estimated $1.35 trillion in assets based on disclosed assets by all Islamic finance institutions — full Shariah-compliant as well as those with shariah windows — covering commercial banking, funds, sukuks, takaful and other segments.

The breakdown by category includes $985 billion for commercial banking, $251 billion for sukuks, $44 billion for Islamic funds and $26 billion for takaful, or insurance.

“This represents a very small proportion of the global financial assets, it is a fast growing segment rising at 15 per cent to 20 per cent a year in many of its core markets,” the report says.

In addition, an estimated $628 million of Islamic microfinance assets is also a growing segment although only representing about 0.8 per cent of the estimated total global microfinance market of $78 billion in 2011.

Globally, banking assets, excluding funds, insurance and other distinct segments, accounted for $123.7 trillion in assets in 2012. Current Islamic banking assets amount to $985 billion, comprising less than one per cent of global assets.

The gap between the potential and existing Islamic finance market remains large. Assuming an optimal scenario in core Islamic finance markets of countries of the Organisation of Islamic Cooperation, or OIC, the 2012 potential of the Islamic banking universe could reach $4,095 billion in assets within the OIC. The optimal scenario assumes full regulatory support for Islamic finance in OIC markets and a 100 per cent Islamic banking penetration with the proportionate Muslim demographic of OIC countries. 

Islamic microfinance

With a large segment of the global low-income population concentrated in Muslim majority countries, it is also estimated that 72 per cent of people living in Muslim-majority countries do not use formal financial services. This makes Islamic microfi-nance an important market given Islamic finance law sensitivities among all segments of the Muslim popula-tion.

The Islamic microfinance market is also a growing segment but with a huge gap relative to its potential. According to the study released by the Consultative Group to Assist the Poor, or CGAP, the estimated size of Islamic microfinance today is $628 million in managed assets, which is 0.8 per cent of the estimated total global microfinance market of $78 billion. Between 2006 and 2011, Islamic microfinance market has quadrupled, according to the CGAP study. 

Attracting global banks

Islamic finance has attracted the attention of global finance while becoming a major economic driver for the economies of Muslim-majority countries.

Global banks such as Deutsche Bank, HSBC, Standard Chartered and Citi have their investment banks serving as lead arrangers on sukuk issuances around the world.

“Many global banks have an Islamic window or separate Islamic banking subsidiaries, while the United Kingdom’s government has become the first non-Islamic country to announce a major sukuk issuance,” the Thomson Reuters study says.

UK Prime Minister David Cameron recently announced a £200 million sukuk to be issued in 2014. This issuance hopes to make England at par with other global leaders within the Islamic finance industry. It is also expected to strongly strengthen the domestic Islamic finance industry. The current legislation within the UK supports sukuk’s unique infrastructure and has resulted in over $34 billion in sukuk listings. In parallel, the London Stock Exchange will create an index to give a more accurate rating to sukuks.

Demand for sukuk

The demand for sukuk, or Islamic bonds, is expected to almost double in value over the next four years, driven by strong economic growth in the Middle East and Asia and their spread to new markets, according to a report by Thomson Reuters.

Global demand for sukuk is expected to reach $421 billion by 2016 from $240 billion in 2012, according to a Thomson Reuters survey of 169 investors and sukuk arrangers, mainly from the Gulf region and Asia, conducted in August and September.

According to Thomson Reuters, sukuk issuance in all currencies fell by more than a quarter to $79 billion during the first nine months of 2013 compared to $109 billion in a similar period a year ago. It attributed the decline to a rise in global credit spreads since May due to the prospect of US monetary tightening. However, the same report forecasts that sukuk issuance would resume rising rapidly next year, hitting $130 billion in 2014.

Dubai, which is facing stiff competition from London and Kuala Lumpur in attracting Islamic finance, has made a significant progress in sukuk listings this year and lifts the emirate’s leadership vision to become an international hub of Islamic economy. The emirate’s capital markets are expected to cross $16 billion sukuk listings by year-end. So far, nine sukuks worth approximately $13 billion are listed on Dubai’s exchanges this year, the third largest in the world, underlining the growing success of the “Dubai, the Capital of the Islamic Economy” initiative.

Referring to some potential upcoming sukuks, Thomson Reuters report said Tunisia has aimed to issue one billion dinars ($634 million) worth of Islamic bonds, the first time the country had used the developing sector to fund public borrowing.

“One billion dinars are to be available from the Islamic bonds by 2013 budget for the first time,” Finance Minister Slim Besbes told state radio. The issuance is now expected in February or March of 2014.

While the fall of the Muslim Brotherhood means less political support for Islamic finance development in Egypt, both economic pressure and strong consumer demand means the industry should continue to grow, albeit slowly. A planned major sovereign sukuk programme seems shelved for now but there is no official “no” either.

Pakistan’s Meezan Bank is planning to issue a $68.5 million sukuk for a telecommunications operator in the country. The Islamic bond will have a five- to 10-year maturity period.

France’s second-largest bank will also become the second bank in Europe to issue a sukuk and the first bank within the region to issue one in Asia. Societe Generale first sought the expertise of Hong Leong Islamic Bank before planning to issue the $300 million sukuk. The approval has been granted by the central bank and the funds are expected to be re-invested in the purchase of assets in Dubai, which also serves as the Socite Generale’s headquarters.

FWU AG Group, a Munich-based financial services company, recently issued a $55,000,000 sukuk — the first-ever sukuk issuance by a German corporate and the largest ever sukuk from a European corporate. This is also the first sukuk to utilise a computer software programme and intellectual property rights under an Ijara structure.

Moreover, Abu Dhabi Islamic Bank, or ADIB, attracted a spec-tacular order book of over $15 billion for the $1 billion perpetual sukuk, which has no maturity date. The bank can choose to repay the bond on certain dates from 2018 if it wishes. The hybrid sukuk was the first to be publicly issued by a bank to meet the Tier 1 capital requirement in Basel III global banking standards that will be phased in around the world over the next several years — although ADIB privately placed a $2 billion Tier 1 note in 2009.

Almarai became the first corporation in the Gulf to issue a hybrid sukuk worth $435 million. It enables Saudi food producer to diversify its funding sources to pursue its expansion strategy in a cost-effective way.

(Khaleej Times / 25 Nov 2013)

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Islamic Finance Report Cites Importance of Shariah Standards in Education

Ethica Institute of Islamic Finance, the Dubai-based global leader in Islamic finance certification believes that the options in Islamic finance education are only as good as their adherence to third-party standards.

Dubai, United Arab Emirates (PRWEB) November 29, 2013

“Where do I learn Islamic finance?” seems to be the question on everyone’s mind these days. With options ranging from short workshops to masters-level programs, students are spoiled for choice. With the spread of Islamic finance globally, the spread of Islamic finance education was sure to follow. The Global Islamic Finance Education research report from Yurizk helps individuals and institutions weigh their options.

Yurizk’s CEO Sadia Karim said, “Human capital development is a critical challenge for the Islamic finance industry and previously there was no comprehensive study that addresses the major issues and at the same time backs the insight with collective data. GIFE 2013 bridged that gap of information and brought critical insight into the challenges facing the Islamic finance industry in human resources development and the industry’s long term sustainability.”

Ethica Institute of Islamic Finance, the Dubai-based global leader in Islamic finance certification, believes that the options in Islamic finance education are only as good as their adherence to third-party standards: “Islamic finance is one of the few global industries in which one cying that it is actually Shariah compliant. The onus is on Islamic finance educators to ensuan get away with calling something ‘Shariah compliant’ without any independent third-party verifre that what they are teaching has been checked by an Islamic finance scholar as adhering to a globally accepted standard like AAOIFI.” Ethica was amongst the report's key contributors and submitted a section on the need for standardizing Islamic finance education.

As options for Islamic finance education grow, the prestige of institutions will likely be measured by their Shariah authenticity more than by any other factor. The Global Islamic Finance Education report gives students a sound starting point before committing to a program of study.

(Long Island Newsday / 28 Nov 2013)

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Malaysia: New ruling to maintain Muslim business legacy

PETALING JAYA: The Labuan International Business and Financial Centre (LIBFC) has cleared the regulatory requirements that will allow Muslim businesses to maintain the core wealth of the company under Islamic beneficiary laws.

Dr Mohd Daud Bakar, chairman of the Shariah Advisory Council for Bank Negara Malaysia and LIBFC, said a fatwa issued by the council in April has allowed the creation of trusts that will allow the family business to be preserved and passed down to ensuing generations in a non-disruptive way.

Traditionally, Islamic wealth is passed down the generations through a system called ‘faraid’, which allows for the wealth to be divided among beneficiaries.

Mohd Daud said by creating trusts, Muslim family businesses will survive after the death of the principal.

“Businesses that had been build over a period of time would not be dismantled as Muslims can create waqf or trust foundations that will prevent the dissolution of business empires or lead to the massive erosion of wealth,” he told The Malaysian Reserve in Kuala Lumpur yesterday.

Speaking on the sidelines of the Islamic Wealth Management forum, Mohd Daud said these trust funds will be professionally managed in LIBFC. “Muslim families are given the option to create a foundation that ensure that wealth will not be subject to ‘faraid’ upon death as the trustee can manage for the benefit of the beneficiaries,” he said.

Mohd Daud, however, said though the new ruling is subject to challenges in the Shariah courts, it is a way to allow high net worth Muslims a way to ensure that their legacy is not broken up.

The fatwa that was issued in March allows Muslims to equally distribute the assets to sons and daughters and addresses the uneven distribution under ‘faraid’ that is biased towards male heirs.

Also at the forum, former Chief Justice Zaki Azmi said Islamic finance was sparked off by the discovery of oil in the Middle East that resulted in the demand for banking system that is free from interest and other non-halal practices.

Zaki said the sudden rise in wealth of Arab countries created a need for Western banks to adopt Islamic-compliant systems in order to attract Arab money.

“These Muslims wanted to invest but do not want their money to be tainted by transactions which are based on interest and therefore haram.

The monies belonging to billionaire Muslim Arabs were mostly in the western financial institutions, which practise the Jewish banking system (interest or usury-based),” said Zaki.

Speaking at the Islamic Wealth Management Seminar in Kuala Lumpur yesterday, Zaki said when Arabs became reluctant to put their money in the western banks, because they will be tainted by haram or illicit dealings, the banks had to tailor the investments to make them halal.

“It began in Dubai, hence the beginning of Islamic financing,” Zaki said.

He said from this spark, other countries, notably Malaysia has spearheaded the move to allow Islamic banking to flourish.

“To avoid any challenge that the method of financing was not according to Shariah, a fatwa council was set up giving confidence to investors of the compliance of the products with halal principles,” Zaki added.

Islamic banking assets under management is anticipated to reach US$2 trillion (RM6.46 trillion) by 2014 globally, while Malaysian banks are the leading Islamic banks in the South-East Asian region.

(Free And Independent / 28 Nov 2013)

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99 Islamic legal maxims

Muslim Jurists have grouped questions of jurisprudence under certain general rules each one of which embraces a large number of questions. These general rules are taken in the treatises on jurisprudence, as justification to prove these question. (These preliminary study of these rules facilitates the comprehension of the questions and serves to fix them on the mind.) Consequently the ninety-nine (99) rules of jurisprudence have been collected together ... Although a few of them, taken alone, admit of certain exceptions, their general application is in no way invalidated thereby, since they are closely interrelated.

The original Arabic is basically quoted from the original Arabic text by Mahmasani.

The English translation is from the translation by Farhat J. Ziadeh.

Article 1: "Matters are determined according to intention"

Article 2: "In contracts effect is given to intention and meaning and not words and forms"

Article 3: "Certainty is not dispelled, (does not dispel caused), by doubt."

Article 4: "It is a fundamental principle that a thing shall remain as it was originally."

Article 5: "Things which have been existence from time immemorial shall be left as they were."

Article 6: "Injury cannot exist from the time immemorial."

Article 7: "Freedom from liability is a fundamental principle."

Article 8: "Non-existence is a fundamental presumption attached to intervening (transitory) attributes."

Article 9: "Judgment shall be given in respect to any matter, which has been proof at any particular time, unless the contrary is proved"

Article 10: "It is a fundamental principle that any new event shall be regarded as happening at the time nearest to the present."

Article 11: "In principles, word shall be construed according their real meaning."

Article 12: ""No attention shall be paid to inferences (implication) in the face of an explicit statement."

Article 13: "Where there is a text there is no room for interpretation."

Article 14: "A thing established contrary to the Qiyas can not be used as an analogy for other things."

Article 15: "One legal interpretation does not destroy another."

Article 16: "Hardship begets facility".

Article 17: "Latitude should be afforded in the case of difficulty."

Article 18: "Injury may not be met by injury."

Article 19: "Injury is to be repaired."

Article 20: "Necessity renders prohibited things permissible."

Article 21: "Necessity is determined by the extent thereof."

Article 22: "Whatever is permissible owing to some excuse ceases to be permissible with the disappearance of that excuse."

Article 23: "When a prohibition is removed the thing to which such prohibition attaches reverts to its former status of legality."

Article 24: "An injury cannot be removed by a similar injury."

Article 25: "A private injury is tolerated in order to ward off a public injury."

Article 26: "Severe injury is removed by lesser injury."

Article 27: "In the presence of two evils, the one whose injury is greater is avoided by the commission of the lesser."

Article 28: "The lesser of evils is preferred."

Article 29: "Repelling an evil is preferable to securing benefit."

Article 30: "Injury is removed as far as possible."

Article 31: "Need, whether a of a public or private nature, is treated as necessity."

Article 32: "Necessity does not invalidate the right of another."

Article 33: "When it is forbidden to take a thing it is also forbidden to give it."

Article 34: "When it is forbidden to perform an act it is also forbidden to request to its performance."

Article 35: "Custom is authoritative."

Article 36: "Public usage is conclusive and action must be taken accordance therewith."

Article 37: "A thing that is customary to regard as impossible is considered to be impossible in fact."

Article 38: "It is undeniable that rules of law vary with change in time."

Article 39: "The original (real) meaning is to be regarded in favor of that established by custom."

Article 40: "Effect is only given to custom where it is of regular occurrence or when universally prevailing."

Article 41: "Effect is given to what is of common occurrence, not to what happens infrequently."

Article 42: "A matter recognized by custom is regarded as if stipulated by agreement."

Article 43: "A matter recognised customary amongst merchant is regarded as if agreed upon between them."

Article 44: "A matter established by custom is like a matter established by a legal text."

Article 45: "When prohibition and exigency conflict, preference is given to prohibition."

Article 46: "An accessory which is attached to an object in fact is also attached to it in law."

Article 47: "An accessory to an object cannot be dealt with separately"

Article 48: "The owner of a thing held in the absolute ownership is also the owner of the things indispensable to the enjoyment of such thing."

Article 49: "If the principle fails, the accessory also fails."

Article 50: "A thing which has been discharged or annihilated cannot be restored."

Article 51: "When a thing becomes void, the thing contained in it also becomes void."

Article 52: "When the original fails it is restored to its substitute."

Article 53: "A thing which is not permissible in itself, may be permissible as an accessory."

Article 54: "A thing which is not permissible by way of commencement may be permissible by way of continuance."

Article 55: "Continuance is easier than commencement."

Article 56: "A gift becomes complete by delivery."

Article 57: "Management of citizen's affairs is dependent upon public welfare."

Article 58: "Private trusteeship is more effective than public trusteeship."

Article 59: "A word should be construed as have some meaning, rather than disregarded."

Article 60: "When the real meaning cannot be applied, the metaphorical sense may be used."

Article 61: "If no meaning can be attached to a word it is regarded altogether."

Article 62: "A reference to a part of an indivisible thing is regarded as a reference to the whole."

Article 63: "The absolute is construed in its absolute sense, provided that there is no proof of a restricted meaning either in the explicit text or by implication."

Article 64: "A description with reference to a thing present is of no consequence, but the contrary is the case if such thing is not present."

Article 65: "A question is considered to have been repeated in the answer."

Article 66: "No statement is imputed by to a man who keeps silence, but silence is tantamount to a statement where there is a necessity for speech."

Article 67: "In obscure matters the proof of a thing stands in the place of such a thing."

Article 68: "Correspondence resembles conversation."

Article 69: "The recognized signs of a dumb person take the place of a statement by word of mouth."

Article 70: "The word of an interpreter is accepted in every respect."

Article 71: "No validity is attached to conjecture which obviously tainted by error."

Article 72: "No argument is admitted against supposition based upon evidence."

Article 73: "No weight is attached to fancy."

Article 74: "A thing established by proof is equivalent to a thing established by visual inspection."

Article 75: "The burden of proof is on him who alleges; the oath on who denies."

Article 76: "The object of evidence is to proof what is the contrary to the apparent fact."

Article 77: "Evidence is an absolute proof in that it affects third person; admission is relative proof in that it affects only the person making such admission."

Article 78: "A person is bound by his own admission."

Article 79: "Contradiction and proof are incompatible, but this does not invalidate a judgment."

Article 80: "Failure to establish the principal claim does not imply failure to establish a claim subsidiary thereto."

Article 81: "Anything dependent upon a condition precedent is established on the happening of the condition."

Article 82: "A condition must be fulfilled as far as possible."

Article 83: "Promises dependent upon a condition precedent are irrevocable."

Article 84: "The enjoyment of a thing is the compensating factor for any liability attaching thereto."

Article 85: "Remuneration and liability do not run together."

Article 86: "Liability is an obligation accompanying gain.

(That is to say, a person who enjoys the benefits of a thing must submit to the disadvantage attaching thereto.)"

Article 87: "The burden is in proportion to the benefit and the benefit to the burden."

Article 88: "The responsibility for an act falls upon the author thereof; it does not fall upon the person ordering such act, provided that such person does not compel the commission thereof."

Article 89: "In the presence of the direct author of an act and the person who is the cause thereof, the first alone is responsible therefor."

Article 90: "Legal permission is incompatible with liability."

Article 91: "Liability lies on the direct author of an act, even though acting unintentionally."

Article 92: "No liability lies on a person who is the cause of an act unless he has acted intentionally."

Article 93: "No liability attaches in connection with injury caused by animals of their own accord."

Article 94: "Any order given for dealing with the property of others is void."

Article 95: "No person may deal with the property of another without such person's permission."

Article 96: "No person may take another person's property without legal cause."

Article 97: "Any change in the cause of the ownership of a thing is equivalent to a change in that thing itself."

Article 98: "Any person, who hastens the accomplishment of a thing before its due time, is punished by being deprived thereof."

Article 99: "If any person seeks to disavow any act performed by himself, such attempt is disregarded."

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