Identify the nature of contract

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Suppose a customer visits an Islamic Bank for opening investment account. This investment account is opened through Mudharabah contract.

Required:

Problem i. Identify the nature (type) of contract.

Problem ii. What are the roles (names) of Islamic Bank and customer in this contract?

Problem iii. If the Islamic Bank decides that the customer (depositor) will be compensated with a 10% rate of return at the end of each month for the first year and then according to the KIBOR rate. Is this return allowed in Islamic Law?

Problem iv. What are Islamic principles (Shariah rulings) regarding the profit and loss distribution in a Mudharabah contract?

Reference no: EM132744830

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