QUESTION 1 (45 MARKS)

a. Sara plans to have a cafe business. She needs to buy a furniture to be used for the business. The furniture costs RM50,000. Empire Furniture, the supplier, is willing to provide the furniture for her but it will be ready in three months after the contract is made. On 29^th May 2020, they signed the agreement and it was stated clearly that if the furniture cannot be ready in three months, the contract will be void. Sara needs to pay RM10,000 as a deposit to Empire Furniture.

i. Based on above situation, please advise the details of the Islamic contract that can be used by Sara with relevant illustration of modus operandi.

ii. Based on the answer in (a), elaborate the essential elements that effects the validity of the contract carried out by both parties.

3. Assuming that Empire Furniture is unable to complete and deliver the furniture as per schedule, discuss how the contract between Sara and Empire Furniture can be terminated and discharged.

4. Recommend the types of khiyar applicable for Sara and Empire Furniture.