Bai‘atan fi bai’ah

Definition of "Bai‘atan fi bai’ah"

Lit: Two sales in one. Tech: A contract of sale in which a seller offers to sell something for a certain price on cash but for a higher price on credit. It also applies to a situation in which a person sells merchandise for a certain cash price on the condition that the buyer will sell it back to him at a higher price on credit. Thus, the first seller borrows a certain amount of money to be paid back with an increment (riba) sometime later. It is one of the contrivances to legitimize riba. It also refers to a situation where a person offers to sell either one of the two things, without specifying any. It creates uncertainty in the deal.