Bai‘ al-’istijrar

Definition of "Bai‘ al-’istijrar"

A form of sale whereby the buyer keeps on taking the goods from the seller as and when needed with or without settling the price and then settles the account later on. Example: A person keeps on taking meat from a butcher as and when needed and pays him at the end of a month. Alternatively, it also applies to a situation where a person deposits the price in advance but receives the goods later on in instalments. Example: paying annual subscription of a journal in advance and receiving the journal on its publication.