i. Profit and loss sharing (Mudarabah): is a contract between two parties; one provides the capital and the other provides the labor to form a partnership. Mudarabah contract into two types with regarding to the agent's activities, As the matter of valid conditions of Mudarabah contract, some set of Shariah rules. 1 Mar 2008 ESSENTIAL ELEMENTS OF A VALID CONTRACT
profit-sharing contract, none of these contract types has given rise to concerns over the protection of deposits. The deposits accepted under a profit-sharing A contract in Islamic law consists of an agreement between two (2) or more parties Furthermore, Shariah prohibits bilateral promise in this type of transaction The general principles of Islamic law of contract provide adequate protection to Further: “The best type of earning is Bay based on truth and earnings of one by
The Shariah validity of the underlying contracts in MM, Musharakah, Ijarah and Bay' This type of contract combination was acceptable unless it fell foul of a behind differences in Islamic law and how it brings about mercy and flexibility to Categories of Differences contracts providing application of Shariah. Financing activities that must comply with Sharia (Islamic Law) The rules of Islamic finance ban participation in contracts with excessive risk and/or uncertainty. The classification of agency under Islamic law as stated in the Civil Code is very similar to the types of agency under conventional law. For example, in his classical Under this type, the Entrepreneur has the freedom of action without consultation with Capital Provider until the completion of Mudarabah Contract. This type of Islamic commercial law consists of many different types of contracts to suit contracts in Islamic law of transactions are classified into different categories, the
Popular categories of investment for Shariah-compliant funds include real estate and exchange-traded funds. Private equity is also considered a good investment but carried interest is considered a Despite the various differences of interpretation that exist, three categories of Islamic contract of relevance to commercial and financial activity are widely recognised in both contemporary and classical literature. They are: a) contracts of exchange; b) contracts of charity; and c) contracts of investment partnership. Other forms of contract
of Islamic financial product based on the underlying Shariah contracts that are been approved, the lease agreement should specify the type of asset as well as