Islamic Finance: Murabahah Transaction Standard

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What is the preferred addressee for the invoice according to the text?

The supplier
The Institution (correct)
The customer
No specified addressee

When is a statement of prices considered an invitation to negotiate and not an offer of sale?

When it is addressed to the customer by name
When it includes a promise to buy the item
When it is a general offer with no reference to any named customer (correct)
When it is sent by the Institution

What is essential to exclude for a transaction to qualify as Murabahah?

The addressee of the invoice
Any prior contractual relationship between the customer and the original supplier (correct)
The invitation to negotiate
The promise to buy the item from the customer

In a Murabahah transaction, who must be the party from whom the item is bought?

The supplier of the ordered item (D) Signup and view all the answers

What would render a sale transaction void according to the text?

If the item is bought from the customer or his agent (A) Signup and view all the answers

What does Standard 1 cover?

Various stages of the Murabahah transaction (C) Signup and view all the answers

According to the standard, what does the customer's wish to acquire an item through the Institution constitute?

A promise or commitment (C) Signup and view all the answers

What is permissible for the customer to request the Institution according to item 2/1/2?

To request the Institution to purchase the item from a particular source of supply (A) Signup and view all the answers

What does Standard 1 not cover?

Trust and bargaining sales (D) Signup and view all the answers

What is the Institution entitled to do according to item 2/1/2?

Decline to carry out the transaction if the customer refuses offers from other sources of supply (C) Signup and view all the answers

What is the purpose of the customer's promise to purchase in a Murabahah transaction?

To provide assurance that the customer will complete the transaction (A) Signup and view all the answers

Under what condition is a bilateral promise between the customer and the Institution permissible?

If it can be cancelled by either party or both parties (D) Signup and view all the answers

What is permissible for the Institution in a 'sale or return' basis transaction?

To return the item to the supplier within a specified period (C) Signup and view all the answers

What is not permissible for the Institution in relation to commissions and expenses?

Bearing all expenses for preparing the documents of the contract (D) Signup and view all the answers

What should happen before the execution of a Murabahah if the Institution and the customer agree to revise the terms of the promise?

The terms can only be revised with mutual consent by both parties (A) Signup and view all the answers

What is not permissible for the Institution and the customer to agree to form?

Murabahah on deferred payment terms (C) Signup and view all the answers

What is impermissible to issue as per the text?

Negotiable Sukuk with underlying Murabahah receivables (D) Signup and view all the answers

What is not permitted to carry out on deferred payment terms as per the text?

Murabahah involving currency assets (B) Signup and view all the answers

What is impermissible to renew as per the text?

Murabahah contract on a new commodity (A) Signup and view all the answers

What must be verified before entering into Murabahah if the supplier (owner) has a blood relationship or marital relationship with the customer?

That the sale is not a stratagem for Inah (A) Signup and view all the answers