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Procedures To Be Adopted By Bank To Ensure Valid Murabaha Transaction
A Murabaha is a permissible mode of financing in the Shariah. However, it is often misused, such that, in substance, it takes the form of...
 
Seller's Amendment Of Murabaha Contract Without Approval Of Buyer
It is impermissible to unilaterally amend a Murabaha contract. Any amendment made must be with the full knowledge and approval of both parties to...
 
Goods Bought For Own Use Being Sold As Murabaha
It is permissible to sell such goods under a Murabaha. The intention at the time of purchase does not affect the validity of the Murabaha contract.
 
Title Deed Issued In Name Of Promising Buyer
It is not permissible to issue the title deed in the name of the promising buyer. The title deed is proof of ownership and should be in the name of...
 
Adding Bank's Inter-Departmental Commission To Cost Of Murabaha
It is not permissible to add inter-departmental bank commissions to the cost of goods in a Murabaha contract. Such a commission is not considered...
 
Murabaha Transaction Through An Interest-Based Bank
Such a transaction is permissible in principle. However, in practical execution, there are a number of Shariah considerations involved. Therefore,...
 
Buying Goods Under Murabaha From Lessee
Such a transaction is permissible in principle. However, it should be verified that the lessee is the actual owner of the goods being sold and that...
 
Financing Concluded Deal Between Client And Owner Of Goods
Such a transaction is impermissible since it would amount to interest-based financing. For a Murabaha to be valid, it is necessary that the bank...
 
Collusion Between Buyer And Owner Of Goods In A Murabaha
The transaction described in the question is not permissible, as it amounts to an interest-based financing by the bank. If the bank becomes aware...
 
Earnest Money Paid By Client To Owner Of Goods
It is impermissible to contract a Murabaha transaction with a client who has paid earnest money to the owner of the goods. It is necessary that all...
 


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