A financing arrangement cannot become valid cost-plus sale unless it is first a valid sale. Ownership, existence, possession, lawful subject matter and price certainty therefore matter before financing profit can be discussed.
This rule is especially important in financing because cost-plus sale (مرابحة) is valid only when the financing remains a real sale. The sequence of ownership, possession, risk and final sale must therefore be visible in the transaction.
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Cost-Plus Sale (مرابحة): Foundations and Rules of Sale
A financing arrangement cannot become valid cost-plus sale unless it is first a valid sale. Ownership, existence, possession, lawful subject matter and price certainty therefore matter before financing profit can be discussed.
This rule is especially important in financing because cost-plus sale (مرابحة) is valid only when the financing remains a real sale. The sequence of ownership, possession, risk and final sale must therefore be visible in the transaction.