Compare and contrast the two contracts in the following Case

A grocery store owner wants to add a cold dink corner to his existing business where he will be selling cold drinks of a famous brand like Coca Cola or Pepsi . To set up this stall he needs a deep freezer or chiller as without it he will not be able to sell which will cost him 1000Bd , getting all the necessary details and successful completion of required verifications, Islamic finance program approves his application and provide two contract diminishing Musharaka agreement and Murabaha Agreement both for 2 years.

A. The diminishing Musharaka will be on the following terms and conditions.

i.Contribution of Islamic Microfinance program will be 500Bd

ii.Profit Sharing ratio is 40:60.

iii. the rental for the deepfreezer is 30 Bd /month

B. The Murabaha will be with a profit ratio is 5%

Answer the following

1. Discuss the two contracts at the case study according to Shariah Law.

2. Based on the above mentioned case, evaluate how Murabahaand diminishing musharaka can be used as a mode of financingfor this grocery.