Sale (Bai) is commonly defined in shari’ah as “the exchange of a thing of value by another thing of value with mutual consent”. More specifically it means “the sale of a commodity in exchange of cash”
- Valid Sale (Bai Sahih):
A sale becomes valid if the following elements are present as well as the conditions in the attached chart # 2 are complied with:
- Contract (Aqd)
- Subject Matter (Mabe’e)
- Price (Thaman)
- Possession or delivery (Qabza)
- Void/Non Existing Sale (Bai Baatil):
Sale will be void if any one of the conditions of offer and acceptance (1.1), conditions of Buyer & Seller (1.2) and sold good conditions (2.1 – 2.5) are not complied with. In a void sale, the buyer does not have title to subject matter and seller does not have title to price. Both subject matter and price cannot be used lawfully. The produce of both shall be unlawful.
- Existing sale but void due to defect (Bai Fasid)
Sale will exist but will be void due to defect if the conditions of contract (1.3), sold good conditions (2.6 & 2.7) and conditions of price (3.1 & 3.2) are not complied with. However, if the defect is rectified the sale becomes valid. In a fasid sale, the buyer should not possess the subject matter. If possessed with the consent of the seller, title or ownership will pass to the buyer but usage of subject matter will be impermissible. He must return it to the seller.
- Valid but disliked sale (Bai Makrooh):
A sale will be Makrooh when the transaction is complete and one gets possession of the goods but is disliked eg. sale after Juma Azaan, sale after hoarding or where a third party intervenes to buy something which was under negotiation of sale between other parties.
Types of Sales:
Following are the common types of sales
- Bai Musawamah: It refers to normal sale in which cost price is not known.
- Bai Murabaha: It refers to a sale in which cost and sale price is known to the buyer.
- Bai Muqayada: It refers to barter sale excluding currency sale.
- Bai Surf: It refers to the sale of gold, silver and currency.
- Bai Salam: It is a kind of sale in which payment is spot while the delivery of the good is deferred.
- Bai Istisna: It refers to such sale in which commodity is transacted before it comes into existence. It is basically an order to manufacture.
- Bai Muajjal: It refers to such sale in which payment is delivery is spot while payment is deferred but cost is not known.
Source: Dr. Muhammad Imran Ashraf Usmani, Meezan Bank’s Guide to Islamic Banking.
Search our Resources or Dictionary