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IBRA' - Coggle Diagram
IBRA'
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Conditional Ibra'
- Not permissible even though the present condition is known because ibra' contains elements of transferring ownership
- Permissible to stipulate conditions if it is a common practice and not permissible if otherwise. This is the stance of the majority of Hanafi jurists.
- Permitted absolutely. This is stance of the majority of Maliki jurists and narrated from Ahmad on the basis that ibra' means a waiver of rights.
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Revocation of Ibra'
- The Hanafi and the Hanbali jurists, and one opinion of the Shafi'i jurists advocate that the grantor cannot retract his ibra'. This is because whatever rights he has had ceased with ibra'. Something that has ceased to exist does not return. The debt does not remain his, it is as he has given it away and it is destroyed.
- The Maliki and the Shafi'i jurists, however, hold that the creditor can retract. This is because they emphasise the dominance of ownership in ibra' and the condition of acceptance of the offer. There is, thus the possibility of retraction of the offer as long as it has not been accepted by other party.
Definition of Ibra'
Ibra' means mutual estrangement and removal, as in 'I was absolved of debt when it was removed from me'. It can also be defined as to release, eliminate or purify and to remove. Technically, Ibra' means an act of absolving or dropping one's financial rights (to collect payment) from a person who has the obligation to repay the amount borrowed from him.
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Application of Ibra'
A bank as the financier may rant ibra' to a customer who makes prepayment or performs early statement before the end of tenure. Normally, the bank may give ibra' on unearned profit charged by the banl. In the case of multi-tiered financing, it may happen that tha bank give ibra' by reducing the unearned income of the bank.
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