Lecture 6: Conventional leasing vs Ijara

A conventional lease is a commutative contract between a lessor and lessee whereby an asset (property) is placed at the disposal of the latter for an agreed period of time in return for a series of payments to be made by the latter to the former. The lessor retains ownership of the asset while the lessee only utilizes the asset over the agreed period (in other words, the lessee only owns and enjoys the usufruct of the leased asset).

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