Islamic Finance Applications: Musyarakah Contract and Sukuk Disputes

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17 Questions

What is the primary reason a bank may require a security pledge from its partner in a Musyarakah contract?

To protect the bank from the risk of partner's negligence

When disputes arise in sukuk prospectuses, what alternative to the judiciary is often preferred due to inadequate shariah knowledge among judges?

Expert opinion in fiqh Muamalat

What is the primary principle underlying the Musyarakah contract in Islamic finance?

Mutual consent and shared risk

What is a key difference between Islamic finance and conventional finance?

The prohibition of riba in Islamic finance

What is the role of the Shariah Supervisory Board in Islamic finance?

To ensure Shariah compliance of Islamic finance products

What is the general principle regarding sales in Islamic law?

Sales are lawful unless more specific evidence excludes it.

What is the condition for trade to be valid according to the Quran?

Mutual consent and the absence of riba.

What is the ruling on a transaction that involves a lock-in period in Islamic finance?

It is permissible as long as it is a financing product.

What is the consequence of combining contracts in Islamic law?

The combination is valid as long as each contract is permissible on its own.

What is the basis for determining what is halal and haram in Islamic law?

The Quran and the Hadith.

What is the implication of Imam al-Shafi`i's validation of a contract?

The contract is valid if it involves deferment and spot payment.

Which of the following maxims is related to the concept of permissibility being the original rule for all things?

Permissibility is the original rule for all things

According to the Hanbali School, which maxim is an important guiding principle in Islamic finance?

Certainty is not overcome by doubt

What is the fundamental requirement in every contract in Islamic finance?

Justice

Which maxim emphasizes the importance of intention and meaning in Islamic contracts?

In contracts, greater weight is given to intention and meaning than words and forms

According to the Maliki view, which maxim is closest to the concept of certainty not being overcome by doubt?

Certainty is not overcome by doubt

What is the basis of judgement in Islamic finance, according to one of the maxims?

Knowledge and understanding

Test your understanding of Islamic finance principles, including Musyarakah contracts and the role of expert opinions in resolving disputes related to sukuk prospectuses. Learn how banks mitigate risks and navigate Shariah-compliant financial practices.

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