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Thoughts from Iraj Toutounchian’s Islamic Money & Banking, Integrating Money in Capital Theory
This contract involves mixing the capital of one or more partners with the capital of the Islamic bank on a joint-venture basis for the performance of a specific job in the fields of production, trade, and services for a limited period. This is an optional partnership in that, unless a specific duration is stated at the signing of the contract, any one of the partners may withdraw from it at anytime.
Again, this is a very flexible contract that can be used and applied to a wide variety of activities. One good example is in constructing a house, an apartment, or business premises, for that matter. The duration of any of these is when construction has been completed. The mode of settlement of accounts should be known and may adopt one…
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