Islamic Finance Chapter 2

Question 1

What Are The Two Meaning Of The Term 'Aqd'

Accepted Answer

Agreement, Commercial Arrangement, Legal, To tie between two ends, to fasten, to link

Question 2

Classification Of Contract According to Its Legal Consequences May Result In What?

Accepted Answer

Void Contract (Batil), Valid Contract (Sahih), Invalid or Deficient Contract (Fasid), Enforceable Contract (Nafidh), Withheld Contract (Mawquf), Binding Contract (Lazim)

Question 3

Specific Interpretation Is An agreement among parties concluded through an offer and acceptance with legal consequences

Accepted Answer

True

Question 4

Partnership Contract When The Contract Involves Joint-venture - Such As Mudarabah, Musharakah, etc.

Accepted Answer

True

Question 5

Muwa’adah Is a Conditional/Unconditional Bilateral Contract

Accepted Answer

True

Question 6

Basic Sharī‘ah Principles Of Contracts Based On The?

Accepted Answer

Economic Justice, General Wellbeing, Equitable Distribution Of Resources In The Society

Question 7

What Is A bilateral Contract (‘aqd thuna’i)?

Accepted Answer

It Is An Agreement Between Two Parties To Fulfill Exchanged Promises

Question 8

Offer and acceptance Must have mutual consent of the parties

Accepted Answer

True

Question 9

Bay' al-mulamasah is

Accepted Answer

Sale by touching

Question 10

Muslim Jurists Have Classified Contracts As

Accepted Answer

Contracts That Contain Some Prohibited Elements, Sharī‘ah-compliant Contracts

Question 11

The Classification Of Contract According To Its Circumstances Involves Two Types Of Contracts Being Offered

Accepted Answer

Partnership Contract, Sale Contract

Question 12

A contract is valid when its concluded with an effective offer and acceptance + parties have the legal capacity to do so

Accepted Answer

Valid Contract (Sahih)

Question 13

Unenforceable contract that's invalid from the beginning, which cannot be remedied by addressing any missing element

Accepted Answer

Void Contract (Batil)

Question 14

General Interpretation Is Anything or disposition that is intended to be performed by a person out of their own will

Accepted Answer

True

Question 15

Contractual agreements are highly regulated by the Sharī‘ah to ensure _______ exchange of resources in an open market.

Accepted Answer

Equity and a Fair

Question 16

Fiqh Mu’amalat Proclaims All Transactions To Be Permissible If?

Accepted Answer

Free of Usury, Deception, Speculation, Undue Profits, Using Banned Items

Question 17

One-sided contract agreement in which an offeror promises to pay only after the completion of a task by the offeree.

Accepted Answer

Unilateral contracts (Aqd Infiradi)

Question 18

The Origin Of A Contract In Islamic Jurisprudence Is An Obligation To Undertake Certain Actions In Exchange For What?

Accepted Answer

Fairness, Equity, Mutual Exchange

Question 19

Wa'ad Has Several Fulfillments Based On Interpretation What Are They?

Accepted Answer

The Concept of wa’ad is based on fulfilment of promise in all dispositions, ≥ Jurists consider fulfilling waad as recommended In financial transactions, Maliki scholars believe that fulfilling wa’ad is obligatory , enforceable

Question 20

The Definitions For The Term Aqd Are Based On What?

Accepted Answer

General Interpretation, Specific Interpretation

Question 21

Bai' al-Gharar is prohibited in Islam due to

Accepted Answer

Things which are exchanged on the basis of uncertain delivery and payment, Things which exist but which are not possessed by the seller, Things which, as the object of a legal transaction, do not exist

Question 22

Subject Matter is, What is exchanged must have value, be permissible and be possessed by the trading parties

Accepted Answer

True

Question 23

What is Riba al-nasi'ah?

Accepted Answer

Interest on a delayed payment

Question 24

A contract of _ involves the exchange of property for a well-defined consideration in accordance with the mutual consent

Accepted Answer

Contract of Sale (bai’)

Question 25

The Fundamentals of Contract of Sale are

Accepted Answer

Legal Capacity of the Parties, Consideration or Price, Offer and acceptance, Subject Matter

Question 26

How Can A Binding Contract (Lazim or Jaiz) be binding?

Accepted Answer

Binding contract is enforceable under the law, Irrevocable Can't be amended or canceled without mutual consent all parties, Binding if sound in substance and description, Binding if contract can either be revocable (Jaiz) or irrevocable (Lazim)

Question 27

Sale Contract Is When The Incident Involves Simple Buying And Selling

Accepted Answer

True

Question 28

Before considered binding, there must be a consensus/meeting of minds _______ among the parties.

Accepted Answer

Ad idem

Question 29

A Contract Is Classified According To?

Accepted Answer

Its Circumstances, Its Nature, Its Legal Consequences

Question 30

An arrangement or obligations created by the law despite the absence of a contract

Accepted Answer

Quasi Contract (Shibh Al-‘Aqd)

Question 31

Islam Does Not Gives A Right Of Acquisition Of Property To All

Accepted Answer

False

Question 32

The Prophet’s Companions Earned Their Living By?

Accepted Answer

Being Involved In Skilled Crafts e.g. Smithing, Carpentry, Being Engaged In Agriculture/Owning Farmland, Undertaking Professional, State-Associated Jobs, Teaching, Administration Of Zakat And Adjudication Of Disputes, Being Engaged In Lawful Trade

Question 33

A Contract Is Enforceable (Nafidh) if

Accepted Answer

All binding contracts are enforceable under the law, Enforceable contract relates to the rights of the parties to the contract

Question 34

Legal Capacity of the Parties Is that The seller must have legal capacity to engage in a contract of sale

Accepted Answer

True

Question 35

The consideration is usually a property (the exchange of a property for another property)

Accepted Answer

Contract of Sale (bai’)

Question 36

The pillars (arkan) of contract in Sharī‘ah are

Accepted Answer

Subject matter and price of the contract (al-ma'qudalaih), Parties to the contract (al-aqidan), Form (sighah), Intention to create legal relations and meeting of minds

Question 37

The term used for ‘contract’ in Arabic?

Accepted Answer

Aqd

Question 38

What Are Unlawful Earnings Under the Sharī‘ah?

Accepted Answer

Exploitation Of Others While Acquiring One’s Property, Short-Measures In Trade Through Underweight Items, Excessive Gains In Business Transactions, Undue Profits, Hording To Inflate Prices At A Later Period, Adulteration Of Commodities And Trading In Defective Items, Trade-In Prohibited Items e.g. Wine, Pork, Dead Animals

Question 39

The Sharī‘ah Does Not Limit Profit Amount In Business

Accepted Answer

True

Question 40

Bay' al-madhamin is what?

Accepted Answer

The sale of an animal fetus

Question 41

Consideration or Price Is a form of exchange also known as the price of the commodity

Accepted Answer

True

Question 42

Which surah in the Quran reveals textual evidence of exhortation ?

Accepted Answer

Surah Ar-Rum

Question 43

The Sharī‘ah Does Not Limit Profit Amount In Business However There Are Conditions What Are They?

Accepted Answer

A Trader Must Not Exploit Buyers Not Aware Of The Market Price (Prohibited), Commodities Should Be Sold At Market Prevailing Rates

Question 44

Transaction where the basis of the contract itself is valid but there are defects in its attributes that make it invalid

Accepted Answer

Invalid or Deficient Contract (Fasid)

Question 45

Bilateral Contracts Are Broadly Divided Into

Accepted Answer

Contracts Of Safe Custody (Wadi’ah), Contracts Of Security (Tawthiqat), Contracts Relating To The Use Of Usufruct Of An Asset (ijarah), Contracts relating to the performance of a work rendering specific services, Contracts of Exchange (Mu’awadat), Contracts Of Partnership (Shirkah)

Question 46

Qimar (maysir) is

Accepted Answer

Speculation without consideration or compensation for such wealth, Gambling involving the acquisition of wealth by chance of winning the game

Question 47

Wa’ad Is a Binding Unilateral Undertaking Where A Party Promises Or Undertakes To Carry Out A Unilateral Contract

Accepted Answer

True

Question 48

Regardless Of The Way One Chooses To Earn A Living, The Form And Substance Must Be Legitimate

Accepted Answer

True

Question 49

The Main Types of Legal Capacity in a Contract (Ahliyyah) are

Accepted Answer

Receptive legal capacity (ahliyyah al-wujub), Active legal capacity (ahliyyah al-‘ada)

Question 50

Why is Riba prohibited in Islam?

Accepted Answer

Riba Leads to: Arrogance, hard-heartedness and exploiting needs of the poor, Losing control over resources and natural wealth, Cutting ties; creating enmity and hatred between the poor and rich, Keeping money idle and unproductive, adding to miseries of the poor

Islamic Finance Chapter 2

Questions 50

Islamic Finance Chapter 2

Questions 50