18 Questions
In an Ijara contract, what is transferred?
Usufuct of a particular asset
How does Ijara differ from Bai'?
In Ijara, ownership of the asset is transferred; in Bai', only usufruct is traded.
What determines the rent in an Ijara contract?
Rent is determined based on the aggregate cost incurred in the purchase, construction, or installation of the asset by the lessor.
What happens if a leased asset becomes unusable?
The contract is terminated.
What liabilities does a lessee bear in an Ijara contract?
Liabilities emerging from ownership only.
How does an Ijara contract handle non-payment of due rent?
Accrual of rental continues even if the lessee stops using the asset without consent.
What should Islamic leasing comply with?
Conditions of Islamic leasing
When should rent be charged in an Ijara contract?
After delivery of the leased asset to the lessee
What remains in the ownership of the lessor in an Ijara contract?
The corpus of the asset
How does Ijara differ from Bai' regarding ownership transfer?
No ownership transfer in Ijara
Who bears liabilities related to ownership in an Ijara contract?
Lessor
What could be used as a benchmark for setting rent in Ijara?
Inflation rate
When can a donation or penalty payable to charity be made under Shariah Scholars' guidance?
In place of rent payment
What happens if an Ijara contract lessee stops using the asset without lessor consent?
Rental continues to accrue
What is subjected to a ceiling or limit according to scholars in an Ijara contract?
Rent payable by lessee
'Lease as a mode of financing' in Islamic leasing should not be based on what?
'Interest-based loan'
'Lease as a mode of financing' differs from Murabaha in terms of what?
'Future date commencement'
What sets apart rental payment in an Ijara contract from sale price payment?
Rent charged only after asset delivery.
Explore the concept of leasing in Islamic finance and conventional finance. Learn about the agreement between lessee and lessor, periodic fees, and the benefits of asset finance. Discover how equipment and machinery can be obtained without paying the full amount upfront.
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