Musharakah Mutanaqisah Case Study
Musharakah Mutanaqisah has two (2) types which are Musharakah Mutanaqisah for the purpose of asset acquisition and Musyarakah Mutanaqisah for the purpose of venturing in profit generating business activities. The discussion below detailing these two (2) types of Musharakah Mutanaqisah.
TYPE 1: Musyarakah Mutanaqisah For The Purpose of Asset Acquisition
Musyarakah mutanaqisah for the purpose of asset acquisition may be arranged with other contracts such as istisna’ (manufacturing), ijarah mawsufah fi zimmah (advance lease), ijarah (leasing) and bai` musawamah (selling).
Musharakah mutanaqisah for the purpose of acquiring asset under construction may be arranged with istisna` whereby both partners enter into an istisna` contract with a third …show more content…
Based on ijarah, one of the partners will lease his share of the asset ownership to the other partner. As a result, the partner who is the lessee will purchase the share of the other partner on a gradual basis and ultimately become the sole owner of the asset.
A partner under musharakah mutanaqisah may lease his share of the musharakah asset to other partners. A partner may, at the time of entering into the contract, request the other partner to give a wa`d (promise) to gradually purchase the former’s share of the asset over an agreed period of time at market value, fair value or any price to be agreed by the partners. The partners may agree on a specific method of price calculation in the case where total shares are acquired prior to the stipulated tenure.
A partner may pledge his ownership share of the completed asset as collateral to the other partners. The partners may agree at the time of entering into the musyarakah contract that, in the event a partner (promisor) breaches his promise to acquire the musharakah asset as agreed or fails to pay his rent, the other partner (promisee) may sell the asset to that partner or to a third party subject to the terms of the musharakah contract. In the case of breach of promise to acquire the asset, the sale of the asset to a third party may be conducted based on two (2) …show more content…
Where the promisor fails to perform the promise, the promisee may sell his remaining ownership share to the promisor on credit based on a price agreed by both parties. Secondly, the promisee may take the asset as collateral to secure the payments of the deferred price as agreed. Lastly, in the event that the promisee as the creditor liquidates the collateral, there are three (3) option may be applied which are first, the promisee may claim the rental due, the purchase price as agreed in the promise to purchase and costs related to liquidation of the collateral. Second, in the event that the proceeds from the liquidation of the collateral is inadequate to meet the claim, the promisee as creditor may demand the remaining difference. Last but not least, if there is any excess amount from the proceeds of the collateral liquidation after the deduction of claims, the excess amount shall belong to the
TYPE 1: Musyarakah Mutanaqisah For The Purpose of Asset Acquisition
Musyarakah mutanaqisah for the purpose of asset acquisition may be arranged with other contracts such as istisna’ (manufacturing), ijarah mawsufah fi zimmah (advance lease), ijarah (leasing) and bai` musawamah (selling).
Musharakah mutanaqisah for the purpose of acquiring asset under construction may be arranged with istisna` whereby both partners enter into an istisna` contract with a third …show more content…
Based on ijarah, one of the partners will lease his share of the asset ownership to the other partner. As a result, the partner who is the lessee will purchase the share of the other partner on a gradual basis and ultimately become the sole owner of the asset.
A partner under musharakah mutanaqisah may lease his share of the musharakah asset to other partners. A partner may, at the time of entering into the contract, request the other partner to give a wa`d (promise) to gradually purchase the former’s share of the asset over an agreed period of time at market value, fair value or any price to be agreed by the partners. The partners may agree on a specific method of price calculation in the case where total shares are acquired prior to the stipulated tenure.
A partner may pledge his ownership share of the completed asset as collateral to the other partners. The partners may agree at the time of entering into the musyarakah contract that, in the event a partner (promisor) breaches his promise to acquire the musharakah asset as agreed or fails to pay his rent, the other partner (promisee) may sell the asset to that partner or to a third party subject to the terms of the musharakah contract. In the case of breach of promise to acquire the asset, the sale of the asset to a third party may be conducted based on two (2) …show more content…
Where the promisor fails to perform the promise, the promisee may sell his remaining ownership share to the promisor on credit based on a price agreed by both parties. Secondly, the promisee may take the asset as collateral to secure the payments of the deferred price as agreed. Lastly, in the event that the promisee as the creditor liquidates the collateral, there are three (3) option may be applied which are first, the promisee may claim the rental due, the purchase price as agreed in the promise to purchase and costs related to liquidation of the collateral. Second, in the event that the proceeds from the liquidation of the collateral is inadequate to meet the claim, the promisee as creditor may demand the remaining difference. Last but not least, if there is any excess amount from the proceeds of the collateral liquidation after the deduction of claims, the excess amount shall belong to the