CONFIDENTIAL IC/JAN 2024/IMU151

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE : FIQH MUAMALAT

COURSE CODE : IMU151
EXAMINATION : JANUARY 2024
TIME : 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) parts: PART A (1 Question)

PART B (4 Questions)

2. Answer the question from PART A and three (3) questions from PART B in the Answer
Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paper

ii) an Answer Booklet – provided by the faculty

5. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages

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PART A

QUESTION 1

Bay' al-‘Inah is a controversial Islamic financial contract that has raised significant debate
within Islamic finance circles. It entails selling an asset to a buyer at a specified price, after
which the buyer resells the same asset to the seller at a lower price with deferred payment
terms. This structure allows for a form of financing that some scholars argue is akin to
conventional interest-based loans.

Based on the above statement:

a) Discuss the Islamic jurisprudence arguments for and against Bay' al-‘Inah.

(5 marks)

b) Show two (2) differences between Bay’ al-‘Inah and Bay’ al-Murabahah.

(5 marks)

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PART B

QUESTION 1

Narrated by `Aisha: The Prophet (peace be upon him) purchased food grains from a Jew on
credit and mortgaged his iron armor to him.

(Sahih al-Bukhari, 2068)

Based on the above Prophetic tradition:

a) Discuss two (2) purposes of Bay' Bithaman Ajil.

(5 marks)

b) Explain two (2) arguments of scholars behind the permissibility of different pricing for
both normal sale and Bay' Bithaman Ajil.

(5 marks)

QUESTION 2

Bay' al-Salam is a type of forward contract between two parties for the sale or purchase of a
commodity, with terms and conditions agreed upon for a future date. The Bay al-Salam
contract is beneficial for both buyer and seller because the seller receives full payment in
advance while the buyer can purchase the commodity at a favorable price.

Based on the above statement:

a) Describe two (2) conditions related to the musallam fih (purchased commodity) in Bay'
al-Salam.

(5 marks)

b) Explain two (2) types of Bay’ al-Salam.

(5marks)

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QUESTION 3

"O Messenger of Allah! A man came and asked me to sell him something I didn't have (I
acted to sell it to him). Can I buy the item in the market to hand over to him? He (the
Prophet) said: Don't sell things you don't have."

(Hadith narrated by Abu Daud)

Based on the above Prophetic tradition:

a) Explain two (2) conditions of istisna' asset.

(5 marks)

b) Discuss two (2) types of istisna' contract.

(5 marks)

QUESTION 4

Tawarruq is the purchase of an asset that is owned by the seller, with deferred payment, and
then sold to someone other than the seller for cash, typically for liquidity purposes.

(International Islamic Fiqh Academy, 2009)

Based on the above statement:

a) Explain two (2) conditions of Bay' al-Tawarruq.

(5 marks)

b) Discuss two (2) contemporary scholars' views on Bay’ al-Tawarruq.

(5 marks)

END OF QUESTION PAPER

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