Ijara Contract

• “Ijarah” is a term of Islamic fiqh.
• The term ‘ijarah’ is analogous to the English term ‘leasing’. A form of investment, and as a mode of financing.
• Lexically, it means ‘to give something on rent’, compensation, reward, or consideration
• Ijarah is a contract whereby the owner of an asset, other than consumable, transfers its usufruct(legal right to use) to another person for an agreed period at an agreed consideration.
• Transferring of Usufruct not Ownership.
• An owner transfers an assets usufruct to another person for an agreed period, at an agreed consideration.
• In both, sale and ijara, something is transferred to another person for a valuable consideration.
• However in sale, the corpus of the property is transferred to the purchaser, while in the case of ijarah, the corpus of the property remains in the ownership of the transferor, but only its usufruct i.e. the right to use it, is transferred to the lessee. 
• Ijarahs are common and straightforward.
• Following links would provide a pratical implications of Ijara contract
• http://www.ethicainstitute.com/SampleCoursePlay.aspx?Id=Wf4elRI5bJU=&inf_contact_key=37bd5ec744e7bc911784130e0f7dd56ea69065d34cf76d4f3ad10ec9c158a322
• http://www.ethicainstitute.com/SampleCoursePlay.aspx?Id=pJ8MW6ZhUUs=&inf_contact_key=1aed3b2df2fd67f588be74208b4be3522c6064769938eafc67a9061b111ca458
• http://www.ethicainstitute.com/SampleCoursePlay.aspx?Id=mhEINIbc3UM=&inf_contact_key=c2e183a5b97b2d0076764371d9375be05ecbd6af12bbe529e61dd853315fb427
• http://www.ethicainstitute.com/SampleCoursePlay.aspx?Id=OoEpJNNn3JA=&inf_contact_key=f5567ffd29dfa8548375833a7226ab67adca2e4212b07742ac236d5b261f1ac8
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Source:Google.com

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