1 murabaha- by-najeeb_kkhan
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AlHuda Centre of Islamic Banking and Economics, www.alhudacibe.com,Presentaion by Alhuda CIBE ON MODARABA
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1 murabaha- by-najeeb_kkhan
- 2. Sale Contract /Murabaha . Muhammad Najeeb Khan
- 15. Step by Step Murabaha
- 19. 2 . Client appointed as agent to purchase goods on bank’s behalf 2- Agency stage Agency Agreement Bank Client Agreement to Murabaha
- 20. . Bank gives money to supplier through client’s account for purchase of goods. Stage Two for Murabaha financing Islamic Bank 2- Agency stage Agreement to Murabaha Agency Agreement Disbursement to the Supplier Bank Client
- 21. . Client purchases goods on bank’s behalf and takes their possession. Stage three for Murabaha financing 3. Acquiring Possession Client purchases goods and takes possession Transfer of Risk Vendor Bank Client
- 23. . Bank accepts the offer and sale is concluded. Stage four (b) for Murabaha financing 4. Execution of Murabaha Murabaha Agreement + Transfer of Title Bank Client
- 24. . Client pays agreed price to bank according to an agreed schedule. Usually on a deferred payment basis (Bai Muajjal) Stage four (b) for Murabaha financing 4. Execution of Murabaha Payment of Price Bank Client
- 32. Securities Against Murabaha Price
- 50. STAGES OF MURABAHA 4- EXECUTION OF MURABAHA
- 51. Actual Murabaha Sale OFFER & ACCEPTANCE
- 57. Risk Management IN MURABAHA
- 59. END OF PRESENTATION JAZAKAMUALLAH
Editor's Notes
- NIBAF SALE CONTRACT
- NIBAF SALE CONTRACT
- NIBAF SALE CONTRACT Contract or transaction ( Aqd) 1.1 Offer & acceptance ( Ijab-o-Qobool ): The term “Offer” means that one person proposes to either sell his commodity to another person or buy from him and “Acceptance” means that the person who has been offered gives his approval of the proposal. Offer and acceptance are always done in past tense eg. “I have sold” or “I have purchased” etc. There are two ways of doing it: 1.1.1 Oral ( Qauli ): By saying. 1.1.2 Implied ( Isharaa ): By indicating. This is of two types: 1.1.1(a) Credit Sale ( Istijrar ) for eg. settlement of the bill at the end of the month. 1.1.1(b) Hand-to-Hand Sale ( Taati ): Exchange of money with goods without uttering Ijab-o-Qobool for eg. procedure adopted in contemporary stores. 1.2 Buyer & seller ( Muta’aquadeen ): Both must be : 1.2.1 Sane : Should be mentally sound at the time of contract. Mature : Should be adult, however, if minor, must understand
- NIBAF SALE CONTRACT 1.1 Existable The subject matter of sale must be existing at the time of sale. Thus, a thing which has not yet come into existence cannot be sold. If a non-existent thing has been sold, even with mutual consent, the sale is void according to shari’ah. Eg. ‘A’ sells the unborn calf of his cow to ‘B’. The sale is void. 1.2 Valuable The subject of sale must be a property of value. Thus a thing having no value according to the usage of trade eg. a leaf or a stone on a roadside cannot be sold or purchased. 1.3 Usable The subject of sale should not be a thing which is not used except for a haram purpose, like pork, alcohol etc. 2.4 Capable of ownership/title The subject matter should not be anything which is not capable of ownership/title for eg. sea or sky. 2.5 Capable of delivery/possession For eg. an unconstructed building cannot be possessed since it is non-existent.
- STEP BY STEP MURABAHA FINANCING 1.The client and the institution sign an overall agreement whereby the institution promises to sell and the client promises to buy the commodity from time to time on an agreed ratio of profit added to the cost. This agreement may specify the limit up-to which the facility may be availed. 2.An agency agreement is signed by both parties in which the institution appoints the client as his agent for purchasing the commodity on its behalf. 3.The client purchases the commodity on behalf of the institution and takes possession as the agent of the institution. 4.The client informs the institution that it has purchased the commodity and simultaneously makes an offer to purchase it from the institution. 5.The institution accepts the offer and the sale is concluded whereby ownership as well as risk is transferred to the client. All the above are necessary to effect a valid murabaha. If the institution purchases the commodity directly from the supplier it does not need any agency agreement. Note: The most essential element of the transaction is that the commodity must remain in the risk of the institution during the period between the third and the fifth stage. The above is the only way by which this transaction is distinguished from an ordinary interest-based transaction
- STEP BY STEP MURABAHA FINANCING 1.The client and the institution sign an overall agreement whereby the institution promises to sell and the client promises to buy the commodity from time to time on an agreed ratio of profit added to the cost. This agreement may specify the limit up-to which the facility may be availed. 2.An agency agreement is signed by both parties in which the institution appoints the client as his agent for purchasing the commodity on its behalf. 3.The client purchases the commodity on behalf of the institution and takes possession as the agent of the institution. 4.The client informs the institution that it has purchased the commodity and simultaneously makes an offer to purchase it from the institution. 5.The institution accepts the offer and the sale is concluded whereby ownership as well as risk is transferred to the client. All the above are necessary to effect a valid murabaha. If the institution purchases the commodity directly from the supplier it does not need any agency agreement. Note: The most essential element of the transaction is that the commodity must remain in the risk of the institution during the period between the third and the fifth stage. The above is the only way by which this transaction is distinguished from an ordinary interest-based transaction
- STEP BY STEP MURABAHA FINANCING 1.The client and the institution sign an overall agreement whereby the institution promises to sell and the client promises to buy the commodity from time to time on an agreed ratio of profit added to the cost. This agreement may specify the limit up-to which the facility may be availed. 2.An agency agreement is signed by both parties in which the institution appoints the client as his agent for purchasing the commodity on its behalf. 3.The client purchases the commodity on behalf of the institution and takes possession as the agent of the institution. 4.The client informs the institution that it has purchased the commodity and simultaneously makes an offer to purchase it from the institution. 5.The institution accepts the offer and the sale is concluded whereby ownership as well as risk is transferred to the client. All the above are necessary to effect a valid murabaha. If the institution purchases the commodity directly from the supplier it does not need any agency agreement. Note: The most essential element of the transaction is that the commodity must remain in the risk of the institution during the period between the third and the fifth stage. The above is the only way by which this transaction is distinguished from an ordinary interest-based transaction