Once the cost-plus sale price is fixed, default does not permit an increase. A separate charitable undertaking may apply to deliberate default, but the recovered amount cannot become the financier's income. This preserves the difference between a sale price and interest that grows with time.
The important point is certainty at the time of contract. Different options may be discussed beforehand, but once the sale is concluded one definite price must govern the transaction.
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Cost-Plus Financing (مرابحة): From Sale to Banking Structure
Once the cost-plus sale price is fixed, default does not permit an increase. A separate charitable undertaking may apply to deliberate default, but the recovered amount cannot become the financier's income. This preserves the difference between a sale price and interest that grows with time.
The important point is certainty at the time of contract. Different options may be discussed beforehand, but once the sale is concluded one definite price must govern the transaction.