What does Khiyar mean?
DEFINITION OF KHIYAR Option or khiyar in the fiqh literature means the right of one or both parties to a contract to make a choice between two opposing events: execution of a contract or suspension of a contract. They make a contract flexible.
What is Khiyar al ayb?
Khiyar al-ayb is an Arabic term that denotes “defect option” or option in case of defect.
What is Khiyar al shart?
Khiyar al-shart is an Arabic term that translates into “option by stipulation” or “condition option”.
What are the requirements of a valid Shariah compliant contract?
There are various views regarding the elements of the contract in Islamic law. Majority is of the view that the essential elements of a contract are four: (a) Sighah the form i.e. (offer and acceptance); (b) the seller; (c) the buyer and (d) the subject matter (ma`qud `alayh).
What is organized Tawarruq?
defines the organised tawarruq as a contract where the financial. institution arranges to sell a commodity to a client by deferred payment then becomes an agent on behalf of the client to sell the commodity to a third party whereupon the institution pays the price to the client.
How many elements are in a financial contract?
Regardless of whether the contract is verbal or written, it must contain four essential elements to be legally binding.
What is a Quran contract?
An Islamic marriage contract is considered an integral part of an Islamic marriage, and outlines the rights and responsibilities of the groom and bride or other parties involved in marriage proceedings under Sharia.
What parties are involved in a tawarruq transaction?
S 11.1 The contracting parties to each sale and purchase contract in a tawarruq shall be a seller and a purchaser.
Is Tawarruq a contract?
Actually, tawarruq is a sale contract, whereby a buyer buys an asset from a seller on deferred payment and subsequently sells the assets to the third party for cash, with a price lesser than the deferred price.
What is tawarruq al Munazzam?
The Islamic Fiqh Academy defined it as, “the purchase of a commodity possessed and owned by the seller for a delayed payment, where upon the buyer will resell the commodity for cash to other than the original seller in order to acquire cash (al-wariq).” 2. Al-Tawarruq al-Munazzam (Organized Tawarruq)