TYPES OF BAY' (Bay' al-Inah (Sale and Buy Back) (A sale based on…
TYPES OF BAY'
Al-Bay' bi Thaman Ajil (Deferred Payment Sale)
A sale contract with a deffered price (payment)
A sale of an asset on credit paid in lump sum or installments as agreed by the contracting parties.
Bay al-Murabahah (Cost-Plus Sale)
Literally derives from the word "ribh" which means profit realization
A sale of an object with informed profit margin (or the cost price) or sale with markup.
Bay' al-Inah (Sale and Buy Back)
A sale based on the transaction of nasi'ah (delay).
A type of sale whereby the seller sells his assets to the buyer at an agreed selling price to be paid by the buyer at a later date.
This bay' comprises of two contracts of sale: Cash Sale and Credit/Deferred Payment Sale (BBA).
Al-Tawarruq (Sales Arrangement for Obtaining Cash/Monetization
An arrangement that involves sale of an asset to the pirchaser on a deffered basis and subsequent sale of the asset to a third party on a cash basis to obtain cash or vice versa.
There are three types of al-Tawarruq: Al-Tawarruq al-Fardi (Individual Basis), Al-Tawarruq al-Munazzam (Organized Tawarruq) and Al-Tawarruq al-Masrifi (Banking Tawarruq).
Bay' al-Salam (Forward Sale)
It is a contract of sale by which the price is paid immediately, but the object is deffered for future delivery.
Parallel al-Salam (Parallel Salam Contract): The islamic banks or financial or financial institutions could also involve in the practice of parallel salam (salam muwazi) where the financing institutions act as the seller in the first salam contract and act as the purchaser in the second salam contract.
Bay' al-Istisna (Manufacturing Sale)
An agreement to sell to a customer a non-existent asset that is to be manufactured or built according to the agreed specifications and delivered on a specified future date at a predetermined selling price.
Parallel Istisna consists of two series of separate al-Istisna contracts whereby the first al-Istisna contract is between the ultimate purchaser (customer) and the seller (IFI), who is responsible to deliver the specified asset to the purchaser.
Bay' al-Muzayadah (Sale by Auction)
A sale where the good is offered and the people will increase the prices between them until the price stops at the last increased price, and the last purchaser will take it at the highest offered price.
Bay' al-Urban (Sale with Earnest Money)
A sale contract with deposit or downpayment given by the buyer to the seller.
It is a situation where the a person buys an item, then pays a portion of the price to the seller with an understanding that if the sale is executed, the downpayment applies to the price and if otherwise happens, the downpayment is to be considered as a gift from the buyer to the seller.
Bay' al-Istijrar (Supply Sale Contract)
The practice of taking a certain amount of goods, such as bread, meat and oil from the seller by the buyer every day and paying for them at market price at year-end or month-end without fixing the price at the inception of the 'aqd'.
Bay' al-Wafa (Fullfillment Sale)
A sale contract where the seller sells an immovable or movable property to the buyer at a certain price and with a condition that the buyer should return the sold property to the seller if the seller repays back the mutually agreed price.
There are three different contractual elements
Bay' al-Dayn (Sale of Debt/Liability)
A contract where the creditor sells his payable right upon the debtor to the debtor himself or to a third party.
There are two types sale of debt
The sale of debt to the debtor
The sale of debt to the third party.