Kembaraxtra-Islamic Finance: Kafālah (Guarantee in Islamic Finance)
Kembaraxtra-Islamic Finance: Kafālah (Guarantee in Islamic Finance) Introduction In Islamic jurisprudence, Kafālah (كفالة) is a contract of guarantee in which a guarantor (kāfil) undertakes to assume responsibility alongside the principal debtor (makf
Kembaraxtra-Bilateral Contracts in Islamic Finance – Qard (Hassan)
Kembaraxtra-Bilateral Contracts in Islamic Finance – Qard (Hassan) Expanded Introduction In Islamic commercial law, a bilateral contract involves the mutual consent of both parties, where each undertakes a reciprocal obligation. This distinguishes it fr
KembaraXtra – Islamic Finance: Tanāzul vs Ibrā’
KembaraXtra – Islamic Finance: Tanāzul vs Ibrā’ Tanāzul (Waiver) Definition: Voluntarily giving up a right or entitlement. Nature: Applies to rights/benefits (e.g., profit share, rental rights). Example: Investor waives part of her profit in favour of t
KembaraXtra – Islamic Finance: Tanāzul vs Ibrā’
KembaraXtra – Islamic Finance: Tanāzul vs Ibrā’ Tanāzul (Waiver) Definition: Voluntarily giving up a right or entitlement. Nature: Applies to rights/benefits (e.g., profit share, rental rights). Example: Investor waives part of her profit in favour of
Kembaraxtra – Islamic Finance: Common Unilateral Contracts in Practice
Kembaraxtra – Islamic Finance: Common Unilateral Contracts in Practice Introduction In Islamic commercial law, contracts are generally classified into two categories: bilateral (mu‘awadat), which involve an exchange, and unilateral (tabarru‘at), which
Kembaraxtra – Islamic Finance: Sale Contracts (Bayʿ)
Kembaraxtra – Islamic Finance: Sale Contracts (Bayʿ) Introduction (Paraphrased) Among the various forms of commercial transactions recognized in Islamic law, sale contracts (Bayʿ) hold a position of central importance. Throughout history, buying and sel
Kembaraxtra-Islamic Finance: Sale of Trust (Bay’ al-Amanah)
Kembaraxtra-Islamic Finance: Sale of Trust (Bay’ al-Amanah) Introduction Islamic commercial law places great emphasis on honesty, fairness, and transparency in all business transactions. One of the key principles that safeguard these values is the sale o
Kembaraxtra-Islamic Finance: Transfer of the Right to Use (Usufruct) in Islamic Commercial Contracts
Kembaraxtra-Islamic Finance: Transfer of the Right to Use (Usufruct) in Islamic Commercial Contracts Introduction In Islamic commercial law, contracts are not limited to the sale and purchase of goods; they also cover the transfer of usufruct -- the rig
Kembaraxtra-Islamic Finance: Time of Delivery – Problems and Solutions
Kembaraxtra-Islamic Finance: Time of Delivery – Problems and Solutions Case 1: Murabahah Transaction with Delay Problem: Ahmad buys a car via Murabahah, but delivery is set one month later. Solution: Delivery must be immediate since the car exists and is
Kembaraxtra-Islamic Finance: Negotiated Sale (Musawamah)
Kembaraxtra-Islamic Finance: Negotiated Sale (Musawamah) Introduction Islamic commercial law recognises different ways of conducting sales depending on the level of disclosure between buyer and seller. While some sales are trust-based (Bay’ al-Amanah) w