Is the penalty clause in contracts forbidden, and is it a sin to oversee a contract that includes this clause?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the penalty clause is forbidden, then it is not permissible for a lawyer to accept it or assist in it. Otherwise, he would be sinning and fall under the prohibition of cooperating in sin and aggression.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/138962
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 138962
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy