We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Murabaha - Assignment Example

Comments (0) Cite this document
Summary
Under Murabaha, the seller discloses the costs and profit charged there. The price of the sale can be spotted and deferred. In a financial institution, the bank…
Download paper
GRAB THE BEST PAPER
Murabaha
Read TextPreview

Extract of sample
Murabaha

Murabaha is a contract of trust, thus, the goods must be of the quality agreed between the bank and customer. The bank bears the risks that the goods may develop a defect or may be destroyed, since Murabaha is executed at the second sale. The customer can reject the goods if they contain defects or for the reasons of unsatisfactory performance (Hayes and Vogel 141).
It is prohibited to sell Waqf (endowments) since they are not owned by a specific person and for any sell to be valid; the owner must be unambiguously identifiable. Istibdal, which is the sale of Waqf land, can be entered in Murabaha agreement, since the proceeds are used for the purchase of another land to be used for the Waqf purposes. However, according to Hanbalis, the benefits of Waqf cannot be obtained where the land is ruined, barren or is a mosque that is not used for prayers (Iqbal and Greuning 40).
A bank conducting a purchase under a Murabaha contract may open a documentary credit in a foreign bank and receive commissions. Fiqh Academies prefer the prevention of banks taking the commission since it may demand the value of the guarantee in case of buyer defaulting on the agreement (Schoon 32). The bank should notify the buyer of such commission and pass it to the buyer by a way of reduction in the Murabaha contract price (Haron and Azmi 400).
It is not allowed for the bank to finance a concluded deal between the client and owner of goods under a Murabaha contract. Murabaha entails the selling of an identifiable good that the seller owns, disclosing the costs and adding a mutually agreed mark up to the cost of the goods (Saeed 58). Murahaba agreements are not valid for the goods which are not bought or in the possession of the bank (Kettel 48). If the concluded deal is for a specific transaction, the bank should request for evidence of the termination of the concluded deal before it can enter in to a Murabaha agreement with the client. According ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Murabaha Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/516991-murabaha
(Murabaha Assignment Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.net/finance-accounting/516991-murabaha.
“Murabaha Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.net/finance-accounting/516991-murabaha.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Islamic Accounting and Reporting
In Arabic the term “Ijarah” means to give something on a rent and in conventional accounting this term is referred to leasing. Ijarah is a mode of leasing contract which involves a lessor known as mu’ajjir, who transfers the right to use a specified asset to the lessee known as musta’jir for a stipulated time period and in return asks for some periodical rent payment.
7 Pages(1750 words)Assignment
A study of the financial sector in Saudi Arabia differentiating between conventional loans & Murabaha financing
In the paper, we will discuss about the current financial practices of the country. Specifically, the paper is focused on the conventional financing practices and Murabaha financing practices. The first section of the paper is an introductory section in which some general information about mode of financing will be discussed.
4 Pages(1000 words)Essay
Gharar in Islamic Law
New Islamic Banks are established with handsome capital. Conventional banks on realizing the importance of Islamic banking opened separate window to deal with the Islamic banking transactions. Their operations are manned by the experience and knowledgeable human resource (Obaidullah, 2005).
9 Pages(2250 words)Assignment
Gharar in Islamic Law
The particular form and contents of Murabaha agreement is not the same. If a bank’s Religious Supervisory Board is satisfied that the bank’s activities are in accordance with Shariah law, that concludes the matter, so there being no provision in Bahrain law or Islamic law generally, for an appeal by a customer of the bank against the Board’s ruling and certification.
10 Pages(2500 words)Assignment
Murabahah in Islamic Commercial Law Application within Islamic Banking and Finance Industry
A critical Analysis of Murabahah in Islamic Commercial Law Application within Islamic Banking and Finance Industry Issue of Murabahah and Opinions of Muslim Scholars and School of Thought: Islamic banking commenced its service with the personal effort of some Muslims who were concerned with the difficulties in riba.
6 Pages(1500 words)Essay
Global investment house ksc
In other words, financial statements need to inform the reader about how things were done in the past and its impact on the present period as presented in the statement of financial position. This shows the asset and liability used in the trading period and provide information about the assets and liabilities brought forward.
22 Pages(5500 words)Assignment
Islamic banking and financial in a global economy
The role of shariah compliant institutions and the Islamic Rating Agency for regulatory and monitory purposes is also highlighted. The Islamic financial sector has been robust in the last few years and is expected to continue a possible high
6 Pages(1500 words)Assignment
Gharar in Islamic law
Their operations are manned by the experience and knowledgeable human resource (Obaidullah, 2005). Another major contribution of the Islamic banks is that being under supervision of their Shariah Boards they presented a wide range of
9 Pages(2250 words)Assignment
A critical analysis of Morabaha in Islamic commercial law application within islamic banking and finance industry
Islamic scholars still argue that, the structuring of Murabahah financing is rather different from the overdraft facility prepared along conventional lines as the former one offers numerous
8 Pages(2000 words)Essay
Islamic and conventional credit cards
ss Report, 2013, Alam (2013) states that Islamic banking resources with commercial banks worldwide will grow up to US $2.5 trillion in 2014 from US $976 billion in 2011. The demand for Sharia - compliant financial products and services will continue to increase, propelled by
9 Pages(2250 words)Assignment
Let us find you another Assignment on topic Murabaha for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us