Ethica Institute of Islamic Finance™

Browse one of the world's largest database of Islamic finance Q&As available online.

Search Results
Customs Clearing Agent Salary Accounted For In Cost Of Goods With regards to customs clearing agents working for the seller in a foreign country in order to facilitate the import of goods by the seller, all...
	With regards to customs clearing agents working for the seller in a foreign country in order to facilitate the import of goods by the seller, all...

Storage Charges Of Goods As Part Of Cost It is permissible to add storage charges incurred to the cost of goods.
	It is permissible to add storage charges incurred to the cost of goods.

Penalty On Promising Buyer For Default In Purchase Of Goods Such a penalty is not permissible as it falls within the definition of riba. Instead, the bank may choose to sell the goods to another buyer, and...
	Such a penalty is not permissible as it falls within the definition of riba. Instead, the bank may choose to sell the goods to another buyer, and...

Deficiency In Goods Discovered Subsequent To Murabaha Contract Any defect discovered in the goods is the liability of the seller. It is of no consequence if such defect is discovered subsequent to signing the...
	Any defect discovered in the goods is the liability of the seller. It is of no consequence if such defect is discovered subsequent to signing the...

Delivery Of Goods Bought Under Murabaha To Client It is preferable for the bank to have its own storage space where the goods are stored up until they are delivered to the client. However, in the...
	It is preferable for the bank to have its own storage space where the goods are stored up until they are delivered to the client. However, in the...

Delivery Of Goods To Client In Installments Both parties to the Murabaha agreement may mutually agree as to the mode and phasing of delivery of goods. In such a case, if the delivery of goods...
	Both parties to the Murabaha agreement may mutually agree as to the mode and phasing of delivery of goods. In such a case, if the delivery of goods...

Goods Imported Under Murabaha Delivered In Installments In such a case, separate Murabaha contracts should be drafted for each installment date.
	In such a case, separate Murabaha contracts should be drafted for each installment date.

Delivery Of Imported Goods To Client Without Shipping Documents It is permissible for the bank to deliver the imported goods bought under a Murabaha agreement to the client in case they arrive before the...
	It is permissible for the bank to deliver the imported goods bought under a Murabaha agreement to the client in case they arrive before the...

Discount On Advance Payment Of Murabaha Installments A discount on advance payments is permissible. However, this is left at the sole discretion of the creditor (i.e. seller). It is not permissible to...
	A discount on advance payments is permissible. However, this is left at the sole discretion of the creditor (i.e. seller). It is not permissible to...

Confiscating Earnest Money Upon Default It is permissible to confiscate earnest money in such a situation, provided that this was mentioned in the Murabaha contract.
	It is permissible to confiscate earnest money in such a situation, provided that this was mentioned in the Murabaha contract.

Previous12345Next

Disclaimer: Although care has been taken in preparing the information contained in this Q&A database, Ethica Institute of Islamic Finance cannot guarantee the accuracy thereof. Anyone using the information does so at their own risk and shall be deemed to indemnify Ethica Institute of Islamic Finance from any and all injury or damage arising from such use. One should double check with a qualified scholar to see whether the Q&A applies to one's particular situation.

1,000+ scholar-approved answers and growing...

Search Results

7 Day Free Islamic Finance Course

ASK AN ISLAMIC FINANCE QUESTION

SEARCH ISLAMIC FINANCE Q&As

What’s New at Ethica