bai istijrar?A recurring
or ongoing sale, where varying quantities of the goods are bought from a
particular seller over a certain length of time. Another subtly different
meaning is where the seller delivers varying amounts of the goods to the buyer,
making up the total purchase amount over time. The specific timing of the
arrangement is, however, open to interpretation and so one arrangement might be
very different from another, depending on who drew up the contract.
bai muajjal? A contract involving the sale of goods on a deferred payment basis. Under this arrangement, the bank or capital
provider buys assets on behalf of the provider of the product and then sells
the goods to the client at an agreed price. This price necessarily includes a
mark-up, which is the bank’s incentive to perform the transaction as this is the source of its profit. The business is then allowed to pay the total balance by an agreed date in the future either in one lump
sum or through instalments agreed in advance. This contract could in theory
become the basis of a Shariah credit card, and indeed it has been used on a small scale for this
purpose to general approval. The bai muajjal contract is in many ways similar
to a murabahah contract as both are types of credit sale.
bai muzayadah? A standard
auctioning process with open bidding, whereby the various interested parties
make their bids in the full knowledge of the other parties’ bids. Bids can be
changed by the parties on seeing their competitors’ offers until the deadline,
and the seller will decide which offer to accept. It is usually the highest,
although other factors may also influence this decision.
Irrevocable, not able to be revoked or undone. Some contracts might include a get-out clause
with certain conditions attached, but the ba-in stipulation sets in stone the
contract as a whole or any specifically applicable parts.
well-known garden in Medina.
Baitull?h ( baytu -ll?h) A
mosque, literally “house of God”. Specifically means the Ka’aba at