Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As a student of Islamic banking and finance, how do you evaluate below cases and, provide Shariah rulings whether these are Shariah compliant or not

As a student of Islamic banking and finance, how do you evaluate below cases and, provide Shariah rulings whether these are Shariah compliant or not with valid reasoning/justification not more than 3 lines.

1) Mr. Hasan and Mr. Amir are partners in H-A Enterprises with capital contribution of 1 Million each. They have agree on the following terms: a) Mr. Hasan will be the sole active managing partner of the business. b) Profit will be shared between both the partners as 30% to Mr. Hasan and 60% to Mr. Amir whereas they have agreed to donate the remaining 10% as charity. c) Loss will be born as 30% by Mr. Hasan and 70% by Mr. Amir.

2) Mr. Salman has lost his car but he has contacts in Police and other law enforcement agencies. He is highly confident that he will recover his car within a week time. Since Mr. Salman is confident to get the possession of his car, therefore he has entered a Sale Agreement with Mr. Umar for sale of his Car to him.

3) Mr. Bilal has purchased a washing machine from Electronics Hub Inc. on installment basis for 6 months. However, it was also agreed at the time of sale that if Mr. Bilal pays the price before 6 months than the sale price will be decreased.

4) Mr. Usman gives loan of Rs 1 million to Mr. Ali on 0% interest. Mr. Ali has a Fruit and Vegetables Supply Store in the city. Since Mr. Usman has established relationship with Mr. Ali as a result of this loan transaction therefore Mr. Ali, delivers his weekly supplies with zero delivery charges, while his normal delivery charges inside the city are PKR 200.

5) Mudarabah contract was formed between two partners. The Partner A (Rab ul Maal) invests 1 Million for business, while Partner B (Mudarib) commits to perform services for Business. Both the partners have agreed on the following terms: a) Partner B is restricted to transport business only. b) Profit Sharing Ratio (PSR) will be 90% to Partner A and 10% to Partner B. c) Loss bearing ratio will be 50% to Partner A and 50% to Partner B.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 The arrangement between Mr Hasan and Mr Amir is not Shariah compliant ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Management Managing Across Borders and Cultures Text and Cases

Authors: Helen Deresky

9th edition

134376048, 978-0134376042

More Books

Students also viewed these Accounting questions