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EXCHANGE-BASED CONTRACTS, Bay' al-Tawarruq (Monetisation/Cash…

- - - - Further explanation of those 2 conditions:
        
        Consisting of two clear and separate contracts, namely, a purchase contract and a sale contract.
        
        No stipulated condition in the contract to repurchase the asset.
        
        Both contracts are concluded at different times.
        
        The sequence of each contract is correct, whereby the first sale of contract shall be completely executed before the conclusion of the second sale contract.
        
        There is a transfer of ownership of the asset and a valid possession (qabd) of the asset in accordance with Shariah and current business practise ('urf tijari).
- - - - Seller will not be able to deliver the sold debt
    - - Numbers of parties involved
      - Party to whom the debt is sold
      - Modes of delivery
    - - -allow sales debt to debtors -agreed on the prohibition of exchanging one delayed counter value for another counter value
- - - - Tangible Asset ('ayn)
        :check: properties, transport and facilities
        Labour/Non-Tangible Asset ('amal)
        :check: employees and independent contractor
    - - Particular Source of Benefit (ijarah mu'ayyanah)
        :check: related to specific piece of property
        Liability or Pledge to be Fulfilled by Lessor (ijarah mawsufah fi al-dhimmah)
        :check: link to lessor liability which contract on particular usufruct which lessor assumes liability to provide
    - - Instant Lease (ijarah munajjazah)
        :warning: effective immediately after the offer is accepted
        Lease at Future Date (ijarah mudafah)
        :warning: effect is delayed to a future date
        Lease Subjected to Fulfillment of Certain Conditions (ijarah mu'allaqah)
        :warning: effectiveness is tied to future event
        :forbidden: when transfer of ownership contingent upon void matter
    - - Binding (lazimah)
        :check: valid lease devoid of any option of inspection, defect or stipulation
        :check: both are automatically bound to contract and neither one of them have right to revoke without consent
        Non-Binding (ghayr lazimah)
        :check: party to contract have been granted the option of inspection, defect or stipulation
        :check: contract shall not be enforced until the end of the option granted
    - - Operating Lease (ijarah tashghiliyyah)
        :check: conduct either by business companies or IFI
        :red_cross: tied with purchasing agreement
        Finance Lease (ijarah tamwiliyyah)
        :check: conduct by IFI
        :check: tied to purchasing agreement
        :check: used for real estate, machinery and equipment
- - - - Involves 2 parties (Seller & Buyer)
        -Seller is an ordinary trader who buys a commodity without depending on a prior promise purchase which he displays it for murabahah sale.
    - - Murabahah to the purchase orderer (MPO) for a pre-agreed selling price, which includes a pre-agreed profit mark-up over its cost price (customers promise has been specified)
- - - - Involves two contracting parties namely buyer(mustasni) and the manufacturer (sani)
      - Customer request the sani to construct for him a specified asset for a price agreed upon, payable agreed period of time or on a cash basis, to be deleivered on the stipulated date.
        
        The customer pays the agreed price of the asset to the sani either by installments or on a cash basis.
        
        Sani delivers the completed asset to the customers at stipulated date. :
    - - Consists of a series of two separate istisna contracts whereby
        
        Between the ultimate purchaser (customer) and the seller (bank) where seller responsible for delivering the specified asset to the purchaser.
        
        Between the seller(bank) and the manufacturer/contractor of the asset.
        
        1.The customer enters first istisna agreement with bank in which bank is appointed as the contractor of the asset. The contract price is determined as the bank's cost + profit margin. The bank appoints customers as its agent to find a contactor (2nd contractor) to construct the asset on its behalf.
        
        The bank enters into the second istisna agreement (parallel istisna) with the contractor (2nd contractor) to construct the asset as per the specifications agreed with the customer.
        
        3.The bank pays the cost of construction to the contractor in the second istisna agreement.
        
        The customer makes payment of the first istisna agreement on a deferred payment basis.
        
        The bank appoints the contractor as its agent to deliver the istisna asset to the customer upon its completion on the agreed date.