TAWARRUQ
❓ DEFINITION ❓
- sale contract
⭐ MAIN FEATURES ⭐
👥 PARTIES INVOLVE 👥
✅ APPLICATION ✅
- purchase contract
involves the sale of an asset by a seller to a purchaser on a deferred basis
the purchaser of the first sale will sell the same asset to a third party on a cash and spot basis.
👤 seller
👤 purchaser
👤 wakil (agent) may involve
the seller in the first sale and purchase contract shall not be the purchaser in the second sale and purchase contract in the same tawarruq
⚠ sale and purchase contract in a tawarruq
⚠ The purchaser in each sale and purchase contract in the tawarruq shall
have the right to take delivery of the asset
shall be executed by entering into a separate and independent sale and purchase contract.
shall satisfy all the necessary conditions of a valid sale and purchase contract under Shariah
must be respectively evidenced by appropriate documentation or record.
⚠ Payment of the deferred selling price including profit shall not be made to the seller before entering into the sale and purchase contract
- Customer goes to bank and applies for tawarruq
- Bank buys Commodity from market
- Bank sells commodity to client, Client pays bank on credit
- Client appoints bank as agent
- Bank sells to market, Market pays cash
- Bank pays client cash