Terms of Murabaha:1. Buyer’s awareness of the first price of the commodity, including procurement expenses.2. Predetermining the margin of profit by the parties.3. The exitance of the goods at the time of sale.4.
Physical or constructive possession of the commodity by the seller.5. The goods “tangible or intangible” should be legal with commercial value and used for Islamic purposes.Terms of Mudharaba:? Conditions relating to The Capital:1. Capital should be present in the form of cash at the conclusion of the contract.2. The debt or receivables cannot be used as the capital.3.
Rab al mal provides the other party with the funds.? Conditions relating to The Profit and Loss:1. Determining the profit-sharing ratio for each party at the time of the contract.2. Both parties should agree on the profit distribution that is based on the percentage of the profit.
3. The investor is responsible for the losses unless the mudarib have violated the conditions.? Conditions relating to The Work:1. Business management is performed by the mudarib only, and capital is provided by rab al mal.