Sale Contracts

1. In some sale contracts the payment of the price is deferred to a future date while the subject matter is delivered on the spot.

• True

• False

2. The price is paid on the spot while the subject matter is delivered at the future date.

• Salam contract

• Sarf contract

3. In a sale of currency for another currency, both currencies should be exchanged on the spot.

• Salam contract

• Sarf contract

4. Selling goods for its cost price plus a specified mark-up or profit agreed upon.

• Mudharabah

• Murabahah

• Musharakah

5. In istisna', raw materials are provided by one party and labour, workmanship or expertise by another.

• True

• False

6. Istisna' is a contract where a purchaser provides both raw materials and his labour and skill to manufacture a certain well-defined item.

• True

• False

7. Salam refers to buying a future commodity with a price to be determined when the commodity is delivered.

• True

• False

8. Bay Bithaman Ajil is an installment sale.

• True

• False

9. Sale for deferred payment is a contract where the sold item is delivered immediately and the price is paid on the spot.

• True

• False

10. In a sale of deferred payment (Bay Bithaman Ajil), the selling price and the cost price plus an agreed profit margin must be known from the time of the contract is made.

• True

• False