a) the leased item should be transferred to the lessee on completion of the lease agreement and should be of a condition that is fit for performance of the required tasks. The lessor should transfer the leased items to the lessee in their completed form.
b) the usufruct of the leased item should have value.
c) the amount and timing of the lease payments should be agreed in advance, though the agreed schedule and amount of those payments need not be uniform.
d) the lease payment schedule becomes active upon complete acquisition of the usufruct of the leased goods, whether such usufruct is in fact enjoyed by the lessor or not.
e) the period of the lease must be specified.
f) the conditions of usage of the leased items must be stated.
g) the lessor must have full possession and legal ownership of the asset prior to leasing it.
h) the leased asset must continue to exist throughout the term of the lease. Items which are consumed in the process of usage, ammunition for instance, cannot be leased.
i) in contrast with most conventional finance leases, the responsibility for maintenance and insurance of the leased item under ijara remains that of the lessor throughout.
j) a price cannot be pre-determined for the sale of the asset at the expiry of the lease. However, lessor and lessee may agree the continuation of the lease or the sale of the leased asset to the lessee under a new agreement at the end of the initial lease period.
k) in the event of late payment of rental, the ijara may be terminated immediately.
l) the lessor may claim compensation for any damage caused to the leased assets as a result of negligence on the part of the lessee.
0 Comments