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Status Of Advance Payment By Lessee In Contract Of Ijarah Involving Gradual Sale
What is the status of advance payments in a contract of Ijarah involving the gradual sale of an asset to the lessee?
Advance payment by the lessee in such a contract is considered a trust which the lessee gives in order to convey his seriousness to fulfill his promise of purchasing the leased asset at the end of the lease term. It is not considered part of the rental payment. If allowed for in the contract, the lessor may keep this advance payment should the lessee fail to honor his promise.

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