Q 4 : Asma and Aysha have a restaurant business on a Mudaraba contract basis. Asma is
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Q: Asma and Aysha have a restaurant business on a Mudaraba contract basis. Asma is the Rabulmall and Aysha is the Mudrarib of the business. During the recent pandemic their business is experiencing financial problems and they are both contemplating revising their contract. Asma is of the view that given the increased risks in the business, she should have more favorable conditions in the revised contract. Therefore, she is thinking of asking Aysha to include a clause of provision of collateral to secure herself. Aysha is of the view that if Asma thinks that the risks has increased, they can change the contract from Mudaraba to Musharika to provide extra protection to Asma. Furthermore, Aysha is of the view that the Musharaka contract will allow her to reduce her Ayshas risk as she can earn a predetermined fixed income. Given this reduced risk Aysha is willing to provide collateral for the musharaka contract to Asma. For both of them shariah compliance of their business is very important. According to the term of shariahcompliant Mudaraba contract can Asma ask for collateral in a mudaraba contract? Similarly, can Aysha get a a predetermined fixed income by providing collateral as per a Shariah compliant musharaka contract? Please elaborate on the shariah compliance or otherwise of each condition by distinguishing between the rights and responsibilities for each party for both scenarios? Lastly, would it be acceptable to ask for collateral it was a Murabaha contract? if yes, Why? If no Why? Please elaborate from the perspective of parties involved in Murabaha contract.
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