Filter by Categories
Accounting
Banking

Islamic Finance




Non-Binding MPO


It stands for a non-binding murabaha to the purchase orderer; A non-binding MPO is a murabaha to the purchase orderer (MPO) that is accompanied with a non-binding promise/ wa’ad ghair mulzim which constitutes a wa’ad (promise) in which the promisor (al-wa’ed) is under no legal and religious obligation to fulfill the act of purchase towards the promisee (al-maw’uood).

In this type of murabaha, under a wa’ad ghair mulzim neither party promises or undertakes to enter into an effective contract when the object of sale has been procured by the seller. In other words, with a nonbinding promise the seller or orderer are under no shari’a or legal obligation to conclude the contract when the underlying commodity becomes in the possession of the seller.



ABC
The last three decades have witnessed the modern rebirth of Islamic finance both in terms of literature and practice. Islamic banks and ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*