Agreement of Hire Purchase Islamic Perspective

By: Wa'idatul Hasanah (11220009)

Agreement of Hire Purchase Islamic Perspective

It said a hire purchase agreement because originally it was a form of lease agreement, but then it is terminated with saling transaction. This hire purchase agreement is binding character on the parties since the beginning of the agreement. In the Islamic contract law that lease agreement is different with the sale agreement. Both are forms of nominat agreement established the name and legal status in Fiqh Muamalah. Because there are differences between the pillars and conditions, then the implementation both of agreements must be separated.

Islamic contract law offers any form of hire purchase agreement based on Islamic principles which known as Ijarah Muntahiya Bi Tamlik (IMBT). The meaning of IMBT is lease between the owner of leased objects with lesse to get reward over the leased objects with the option to transfer ownership of the leased object to the sale or grant at certain time according to the contract rent. In IMBT, alienation of the goods occurs in one of two ways as follows:

1. The lessor promise to sell the leased goods at the end of the lease
2. The lessor promise to donate the leased goods at the end of the lease

REFERENCE:
S, Burhanuddin. 2009. Contract Sharia Law. Yogyakarta: BPFE
Djamil, Fathurrahman. 2012. Application of the Law of Treaties Transactions in Islamic Financial Institutions. Jakarta: Sinar Grafika

Read More