This preview shows pages 4–7. Sign up to view the full content.
Kharaj bi-al-Daman ():Gain accompanies liability for loss; a Hadith forming a legal maxim and a basic principle – see also Al- Ghunm bil Ghurm.
has intentionally blurred sections.
Sign up to view the full version.
5Khiyar ():Option or a power to annul or cancel a contract. Khiyar al-Majlis ():Option of the contracting session; the power to annul a contract possessed by both contracting parties as long as they do not separate. Khiyar al-Shart ():A right, stipulated by one or both of the parties to a contract, to cancel the contract for any reason for a fixed period of time. Mal-e-Mutaqawam ():Things the use of which is lawful under the Shariah; or wealth that has a commercial value. Legal tenders of modern age that carry monetary value are included in Mal-e-Mutaqawam. It is possible that certain wealth has no commercial value for Muslims (non Mutaqawam) but is valuable for non-Muslims. Examples are wine and pork. Maisir ():An ancient Arabian game of chance played with arrows without heads and feathering, for stakes of slaughtered and quartered camels. It came to be identified with all types of hazard and gambling. Mithli (Fungible goods) ():Goods that can be returned in kind, i.e. gold for gold, silver for silver, US $ for US $, wheat for wheat, etc. Mubah ():Object that is lawful (i.e. something which is permissible to use or trade in). Mudarabah(): A form of partnership where one party provides the funds while the other provides expertise and management. The latter is referred to as the Mudarib. Any profits accrued are shared between the two parties on a pre-agreed basis, while loss is borne by the provider(s) of the capital. Murabaha ():Literally it means a sale on mutually agreed profit. Technically, it is a contract of sale in which the seller declares his cost and the profit. This has been adopted by Islamic banks as a mode of financing. As a financing technique, it can involve a request by the client to the bank to purchase a certain item for him. The bank does that for a definite profit over the cost which is stipulated in advance. Musawamah ():Musawamah is a general kind of sale in which price of the commodity to be traded is bargained between seller and the purchaser without any reference to the price paid or cost incurred by the former. Musharakah ():Musharakah means a relationship established under a contract by the mutual consent of the parties for sharing of profits and losses in the joint business. It is an agreement under which the Islamic bank provides funds which are mixed with the funds of the business