WorksheetsTawarruq
Total questions: 10
Worksheet time: 6mins
What is Tawarruq?
a contract in which one party brings capital and the other personal effort. The proportionate share in profit is determined by mutual agreement.
A contract that consists of two sale and purchase contracts. The first involves the sale of an asset by a seller to purchaser on a deferred basis. Subsequently, the purchaser of the first sale will sell the same asset to a third party on a cash and spot basis.
a contract of lending money by a lender to a borrower where the latter is bound to repay an equivalent replacement amount to the lender.
a contract of partnership between two parties, where one partner gradually buys the whole parts of the property.
Which of these are Components of Tawarruq?
Offer & Acceptance
Rental
Contracting Parties
Asset
Duration
What are the characteristics of the “Offer & Acceptance” component of Tawarruq?
a. May only be expressed in writing
May be expressed orally or in writing
The Sale & Purchase contract must follow the correct sequence
The Sale & Purchase contact’s sequence may change if agreed beforehand
What is Ibra’ in Tawarruq
Imposition of late payment charges
An agent appointed on behalf to perform the Tawarruq contract
Rebate on part or the entire outstanding selling price of the sale and purchase contract
Below are the arrangement of Tawarruq with other contracts, except
Tawarruq + Assurance
Tawarruq + Ta’width and Gharamah
Tawarruq + Bai’ Bithaman Ajil
Tawarruq contract will dissolve under the following circumstance:
Purchaser goes into another contract with the same seller
Purchaser exercise the defect option to terminate the contract
Seller goes into another contract with a different seller
Below are the implications of shariah non-compliance risk, except:
Reputational risk
Increase customer’s confidence
Possibility of contract void
Financial loss
Which of these following are true about Tawarruq asset?
Owned by the seller
Valuable but could not be delivered
Deliverable
Cost and Profit must be disclosed under Murabahah contract.
True
False
Sales and purchase contracts in Tawarruq not necessarily required to follow any sequence, as long as the contract been executed.
True
False
