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Fatwa CenterNot Abiding by the Contract’s Conditions
Question
Assalamu ‘Alaikum Wa Rahmatullahi Wa Barakatuhu. Could you let me know what is the Islamic guideline on the balance between forgiveness and justice in a Business context, please?I work at a for-profit organization. Suppliers and business partners sometimes do not meet their commitment(for example do not deliver on agreed timelines), even when the agreement is clearly written down and agreed upon. Islam calls for forgiveness and extolls the virtues of forgiveness. But, Islam also calls for justice and this makes the situation tricky. What is the best thing to do in this situation?• Investigate and forgive the individual or the company if they did not intentionally miss their promise.• Involve the right authority in my company(the victim) and let them take the decision, whether to forgive or seek compensation or abide by the penalty provisions in the initial contract/agreement• Abide by the contract irrespective of the situation and circumstances.Please let me also know if the Islamic recommendation is to sort out the grievances internally between the two parties (OR) if it is recommended to bring a 3rd party to resolve the issue.Jazak Allahu Khairan
Answer
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
Allah has ordered us to fulfill the contracts and abide by it’s conditions in general as He Says (what means): {O you who have believed, fulfill [all] contracts.} [Quran 5:1]
Also, the Prophet said: “Muslims should honor (abide by) their conditions.” [Abu Daawood; As-Suyooti classified it as authentic]
Hence, if one of the parties of the contract fails to abide by what was agreed upon, then if this happened from him unintentionally and he did not repeat this, then it is recommended to pardon him, but it is not obligatory to do so.
However, those who neither abide by the contracts nor fulfill the conditions, and do this habitually, then such people must be disciplined even if this requires taking the case to a third party that would force them to do what they are obliged to do, and punish them for their negligence about the rights of the people so that they would be deterred and refrain from harming others.
Forgiving such people would encourage them to continue violating the conditions and would make others act like them.
Imam An-Nawawi 
said:
“With regard to the person who is known to do this, i.e. corruption, then it is not recommended to conceal his flaws, unless exposing him leads to a disadvantage. This is because concealing such a person would encourage him to harm, cause corruption and violate the prohibitions, and would encourage other people to do the same thing like him.” [End of quote]
Finally, it should be noted that it is the owner of the right, or someone whom he authorizes to do so, who is entitled to give up the right but not anybody else.
Allah knows best.
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