ijarah, a formal bai (sale) agreement after

ijarah, ijara?Lease, rent or wage, generally the
selling of a benefit, use or service for a fixed price or wage. Under this
concept, the bank
makes available to the customer the use of assets or equipment such as plant,
offices or motor vehicles for a fixed period and the customer pays for it.
Final ownership might come with a formal bai (sale) agreement after several
ijarah instalments (see ijarah thumma bai) or
the item might be promised as a gift, after the purchase amount and profit has
been made (see ijarah wa iqtina).

ijarah fund?A fund whose investors
purchase items which are leased out to other customers, and then the income
from these leases are divided between the investors.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

ijarah thumma bai?An effective
interpretation of the Western
hire purchase agreement, the ijarah thumma bai contract consists of a number of
consecutive ijarah leases and then a
bai (sale)
agreement at the end, to pass on ownership to the customer. The lender (usually
a bank) buys the item or property and then leases it to the customer for a
payment, whereupon the second lease agreement automatically opens and the
process continues. At the end of the agreed number of leases, the bai agreement
takes place, the customer makes the payment for the item and formal ownership
is granted to the customer.

ijarah wa iqtina?A means of
financing almost identical to ijarah
thumma bai except that there is no final payment required. The
lender promises to give the item leased (effectively granted a loan for) as a
gift to the customer at the end of the agreed lease period.

ijazah, ijaza?Written certification.

ijmaa, ijma’?A consensus reached by the most
learned Muslims on a
given topic, particularly that which has employed ijtehad, reasoned thought. One of four
recognised sources of Sunni law,
utilised where the Qur’an and Sunnah are silent
on a particular issue. There is considerable debate concerning whose opinions
are relevant for ijmaa. Some argue that only the opinions of scholars are
relevant. Others contend that ijmaa includes the consensus of the laity. Most
agree that the consensus of Muhammad’s
companions, the people of Medina, or the
family of the Prophet is authoritative. Once an ijmaa is
established, it serves as a precedent. According to the majority of jurists, a
decision based on ijmaa generally cannot override a statement of the Qur’an or
the Sunnah. The binding force of ijmaa is based on a hadith in which the
Prophet Muhammad is reported to have said, ‘My community will never agree on an
error’. In Twelver Shi’ism, consensus is neither an infallible
sanctioning instrument nor a source of law. Ideas of consultation (shura) and
parliamentarianism are used in attempts to formulate a theory of consensus
useful in the modern world.


I'm Johnny!

Would you like to get a custom essay? How about receiving a customized one?

Check it out