IJARAH THEORY TEST

Which one is the best to describe the meaning of Ijarah?

• It is a contract refers to a sales contract where the seller discloses the cost and profit margin to the buyer.

• It is a contract where the owner of an asset transfers its usufruct (benefit) to another person for an agreed period at an agreed consideration.

• It is a contract to give something to buy

• It is a contract where the owner of an asset transfers its usufruct (benefit) to him for an agreed period at an agreed consideration.

Which one is NOT the essential elements in Ijarah contract?

• Hibah

• Ujrah

• Sighah

• Al-manfaah

Choose the correct match.

• Sighah - Ijab and Qabul

  Muajjir - A person who takes on hire

• Ma'jur : The benefit from a thing

  Ujrah - fee given

•   Ujrah - A thing given for rent

  Ma'jur : The benefit from a thing

• Muajjir - A person who give something for hire

  Musta'jir - A person who takes on hire

Ijarah Mawsufah fi al-Zimmah, what is this Ijarah all about?

• To buy goods or assets at the end of contract.

• To lease out the works and self skills

• Form of Ijarah where asset need to be described in advance

• To lease usufruct from specific goods or assets

What does Al-Ijarah Thumma Al-Bay’ (AITAB) refer to in Islamic finance?

• A loan agreement with interest for purchasing an asset outright.

• A contract allowing the benefit of certain assets for a specific period, with an option to transfer ownership after all rental payments are made.

• A sales agreement where goods are exchanged without any leasing terms.

• A partnership where profits are shared without any rental agreements.

What is the residual value of leased assets in the context of leasing agreements?

• The estimated amount expected to be obtained for the assets at the end of their useful life, after accounting for disposal costs.

• The value of the asset during the lease term only.

• The initial purchase price of the asset at the start of the lease.

• The total amount paid in rent over the lease term.

What are the two different contracts that make up the AITAB structure in Islamic finance?

• The contract of insurance (takaful) and the contract of investment (al-mudarabah).

• The contract of employment (al-ijarah) and the contract of donation (al-hibah).

• The contract of loan (al-qard) and the contract of partnership (al-musharakah).

• The contract of lease (al-ijarah ‘ain) and the contract of sale (al-bay’).