International Islamic University, Islamabad

Faculty of Management Sciences

Department of Technology & Project Management

TERMINAL EXAMINATION SPR 2022

Course Name: Islamic Law of Business Transactions Instructor: Ms. Rida Mukhtar
Course Code: GEN 113 Batch: BS A&F 10 (S20) / BBA IT F19
Max Marks: 60 Time Allowed: 8:30 AM to 2:00 PM
Date: 18-06-2022
Note: First TWO Questions are compulsory. Attempt THREE Questions in all.

Q1. Mr. Bajwa lives in Australia but he is a Pakistani National too. He visits Pakistan after every six
months to look after his properties. On 12-06-2021, Mr. Bajwa landed on Islamabad airport. After
immigration process, Mr. Bajwa realized that he could not buy anything as he doesn’t have Pakistani
currency. He went to a currency exchange shop named AQ currency Exchange and asked for exchanged
between Australian Dollars and Pakistani Rupee. The attended welcomed Mr. Bajwa and only willing to
exchange currency on following conditions:
i. The Pakistani rupee will be of poor quality.
ii. The currency exchange rate applied will be of 10-06-2021.
iii. Mr. Bajwa will receive exchange currency on 13-06-2021.
Please specify the nature of contract between Mr. Bajwa and AQ currency Exchange. Whether the
conditions stipulated by AQ currency Exchange are legal according to the Islamic law of Business
Transactions? Discuss in detail the remedies available to Mr. Bajwa.

Q2. Ahmed engages Imran in a business activity by giving him a capital sum of 10 Lacs rupees
and asked him to start business at a place and time of his choice. He also gave him free choice as
to the kind of trade he wanted to do. However, they could not agree upon the profit and left it to
settle once the business starts. Moreover, Imran fell short of 3 Lacs rupees while starting
business, so he used some of his own money to further the trade.

Identify the type of contract between Imran and Ahmed. Also identify the violations that are
being done in the contract, if any?

Q3. State at least THREE differences between the followings:

(a) Ijarat al Ashya.
(b) Ijarat al Ashkhas.

Q4. Discuss in detail how surety can be released from his liability in a contract of suretyship or
guarantee?

BEST OF LUCK!