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MIC - Islamic Finance - Coggle Diagram
MIC - Islamic Finance
Lecture 8: Mudarabah
Definition
Mudarabah is a partnership for participation in profit in which capital is provided from one side, where as labour or skill is from the other side.
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Conditions of Labour
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The manager shall not be liable for any loss of capital unless such loss is due to the manager’s negligence, dishonesty, misconduct or breach of terms of the contract
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Lecture 5: Contracts
Definition
legally binding obligation, which has consequences for its object or subject-matter
to tie, bind, link together, or to bind the two ends of something
Types
Unilateral
waqf, Ibra, Ju’alah, wasiyyah
Bilateral
sale, rent, mortgage and partnership
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Lecture 6: Murabaha
Definition
meaning: ribh, meaning profit / gain
definition: the sale of a commodity at the price the seller has purchased it, with the addition of a stated profit known to both the seller and buyer.
Conditions
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Forbidden for 6 RIBAWI goods: Gold, Silver, Wheat / Flour, Dates, Salt and Barley
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Steps
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The institution appoints the client as his agent for purchasing the commodity on its behalf and an agreement of agency is signed. . The commodity must remain in the risk of the institution
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Institution accepts the offer and the sale are concluded whereby the ownership as well as the risk of the commodity is transferred to the client.
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Lecture 9: Musharakah
Definition
root word shirkah; mixing, joint
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Types
shirkah al-aqad
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based on subject matter
shirkah al-amwal, (money)
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shirkah al wujuh, (commodities)
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Rules
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Termination - giving notice, insanity, death, selling shares
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