Exam preparationPaidIslamic banking

Ijarah, Agency and Service Contracts

Leasing, ijarah muntahia bittamleek, agency, investment agency, ju'alah and hiring of persons

Intermediate · 9 hours · 17 lessons · Language: English and Arabic

USD 14

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ifSPACE provides independent preparation courses. ifSPACE is not AAOIFI, is not an AAOIFI-authorized training provider, and completing a preparation course does not confer any AAOIFI qualification. AAOIFI examinations are taken separately with AAOIFI.

Leasing and agency contracts sit at the heart of Islamic home finance, asset finance, sukuk and investment management. This course explains the Shari'ah standards on ijarah and ijarah muntahia bittamleek, agency and the uncommissioned agent, investment agency (wakalah bi al-istithmar), the liability of investment managers, ju'alah and the hiring of persons.

The course covers the lease and services sections of Part B of the AAOIFI CPSS syllabus, with the related standard on investment managers. Each module has a reading, slides, study notes and a practice quiz. The course ends with a final exam.

This course is independent educational material written by ifSPACE in its own words. It does not reproduce AAOIFI texts, is not affiliated with AAOIFI and is not a fatwa.

What you will learn

Structure an operating ijarah and allocate the lessor's and lessee's obligations correctly
Explain the permitted ways of transferring ownership in ijarah muntahia bittamleek
Apply the rules of agency, including the agent's liability and acts of an uncommissioned agent
Distinguish investment agency from mudarabah and determine when an investment manager is liable
Use ju'alah and the hiring of persons to structure service-based products

Syllabus

1.Ijarah: the leasing contract
- Welcome to the courseFree preview1 min
- How ijarah works and who bears what (SS 9)Free preview30 min
- Module 1 presentation15 min
- Module 1 practice quiz15 min
2.Ijarah muntahia bittamleek and ijarah in practice
- Lease-to-own, forward leases and sale and leaseback (SS 9)30 min
- Module 2 presentation15 min
- Module 2 practice quiz15 min
3.Agency and the uncommissioned agent
- Acting for others (SS 23)30 min
- Module 3 presentation15 min
- Module 3 practice quiz15 min
4.Investment agency and the liability of investment managers
- Wakalah bi al-istithmar and when a manager is liable (SS 46 and SS 56)30 min
- Module 4 presentation15 min
- Module 4 practice quiz15 min
5.Ju'alah and the hiring of persons
- Rewards for results and paying for services (SS 15 and SS 34)30 min
- Module 5 presentation15 min
- Module 5 practice quiz15 min
- Course summary and next steps10 min