Al Kharaj Bil Daman Rule

This entry examines the application of the rule known as al kharaj bil daman within a broad conceptualization of Islamic economics. The rule, stating, in general, that the one who assumes responsibility and liability should be entitled to the yields, finds implementation in a diverse set of areas in Islamic law and economic life. As a general principle, the rule refers to the recognition of a balance between the degree of liability ascribed to someone and the benefits that might be reasonably associated with that liability. As such, the scope of the application of the rule has been extended to a number of economic fields including taxation and cultivation of agricultural land.