Hawala agency History of Islamic economics

the hawala, informal value transfer system, has origins in classical islamic law, , mentioned in texts of islamic jurisprudence 8th century. hawala later influenced development of agency in common law , in civil laws such aval in french law , avallo in italian law. words aval , avallo derived hawala. transfer of debt, not permissible under roman law became practiced in medieval europe, in commercial transactions , due large extent of trade conducted italian cities muslim world in middle ages. agency institution unknown roman law no individual conclude binding contract on behalf of agent. in roman law, contractor himself considered party contract , took second contract between person acted on behalf of principal , latter in order transfer rights , obligations deriving contract him. on other hand, islamic law , later common law had no difficulty in accepting agency 1 of institutions in field of contracts , of obligations in general.