18. Murabahah is a contract that comprises several principal features namely: (i) price of Murabahah sale; (ii) asset of Murabahah sale; (iii) duty of full disclosure of cost and profit; and (iv) Wad (promise) to buy.
Pric , asset, disclosure of cost and Wad
5.1 Price of Murabahah Sale
19. The Murabahah sale price shall be determined based on the disclosed acquisition cost with an added mark-up amount or percentage to be determined prior to the conclusion of the Murabahah contract.
Murabahah sale price consists of original cost plus a mark-up
20. The mark-up, in the form of an absolute amount or a certain percentage of acquisition cost shall be determined and specified before the conclusion of the Murabahah contract. Any benchmark adopted to determine the mark-up shall be specified.
Determination of mark-up
21. The determination of the mark-up may either be based on an agreed percentage of acquisition cost or specified amount for a known and agreed currency.
Certainty of mark-up
22. The agreed mark-up that is determined shall not be subjected to price variation or affected by currency fluctuation as payment due is pre-determined at agreed currency.
Pre-determined fixed mark-up
Section 5: Features of Murabahah Contract