2. A typical, post-Beximco, Shariah clause is likely to read something similar to this:
“The Customer has not relied on any representation made by the Bank as to the Shariah compliance of the Facility Documents and has independently made its own assessment as to whether such Facility Documents are compliant with the Shariah. The Customer has no objection, and will not raise any objections, as to matters of Shariah compliance in respect of or otherwise in relation to the provisions of the Facility Documents.”
This clause therefore, in simple terms, mitigates (despite the fact that such an argument would be unlikely to be successful in English Courts on the basis of Beximco) against the likelihood that Shariah non-compliance could be used to deem the agreement or any of its clauses frustrated, invalid or inapplicable for any reason because no objections on Shariah grounds can be used.