Evaluating the validity of online transaction for electronic storefront from Islamic perspective

The penetration of Internet technology has created an opportunity to increase the productivity of traditional business as well as to start highly productive business based novel business. It has enabled the traditional business enterprise to engage in new electronic commerce. Electronic commerce can be defined as the utilization of information communication technology mediated exchanges by business enterprises for the purpose of selling goods and services over the Internet. Business to consumer (B2C) transaction, one of electronic commerce applications is fast becoming an accepted way to business enterprise to provide products and services via websites to customers. ln addition, the sales of this transaction have increased year by year. Even though, this new application has drastically changed the business method, it has also given a great impact to the legal aspect, especially Islamic commercial law. This study aims to analyze three conditions of Islamic sale of contract namely two parties involved (Al Aqidani), format of i_jab (offer) and qabul (acceptance) and subject of contract (Maaqud Alaihi) in online transaction of electronic storefront. The main objectives for this study are to identify and analyze three conditions of Islamic Sale Contract such as format of offer and acceptance, two qualified parties and subject of contract in online transaction of electronic storefront according to Islamic Jurists and analyze its validity. However, the scope of study is limited for buying tangible products in Malaysia only. Various methodologies are utilized for the study namely observation checklist, interview with structured questionnaires and experimental approach. Based on findings of study, it can be summarized that on line transaction of electronic storefront is valid according to Islamic Jurists, but it is easily exposed to technical issues that can revoke the transaction. Thus, the effective planning is needed to overcome the problem and can be implemented by government, electronic storefronts and customers