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Classifications of Sale

Classifications of sale can be based on determination of price or timing of price payment. Some key types include: 1) Bargain sale where price is determined through negotiation. 2) Bidding sale where price is set by highest bid. 3) Trust sales where original cost must be disclosed, such as cost-plus-profit, no-profit, or loss sales. Price payment can be: on the spot, deferred where price is paid later or by installments, or prepayment for future or manufactured goods. Specific types are salam/prepayment sales and istisna'a/manufacturing sales.

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144 views12 pages

Classifications of Sale

Classifications of sale can be based on determination of price or timing of price payment. Some key types include: 1) Bargain sale where price is determined through negotiation. 2) Bidding sale where price is set by highest bid. 3) Trust sales where original cost must be disclosed, such as cost-plus-profit, no-profit, or loss sales. Price payment can be: on the spot, deferred where price is paid later or by installments, or prepayment for future or manufactured goods. Specific types are salam/prepayment sales and istisna'a/manufacturing sales.

Uploaded by

sehun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ClassClassifications of sale

ifications of sale
sClassifications of sale

Classifications of sale (Bay’) based on determination on Thaman


(price)

Bargain sale (al- Bidding sale (al-


Trust sale (al-
musawamah) muzaidah)
Amanah sale)

Murabaha Tawliyah Wadiah


h (profit) (no profit) (loss)
ClassClassifications of sale

Classifications of sale Based on price


payment

price paid on the both prices are Both price and


Price paid later (BBA) exchanged on the spot
spot (salam) sold item paid
( Saif) later (Haram)
Deferred Payment Sale (Bay’ Bi-thaman Aajil

It is a sale contract in which the sold property is delivered to the buyer


but
price is postponed to a future date
or
paid by instalments.
It can be a bargain ( musawamah ) sale
or
It can be trust ( amanah ) sale.
Future Commodity Sale (Bay’ al-Salam)

Salam, or salaf – prepayment


Salam is a sale transaction in which price is given before
Commodity will be delivered later.

For example
a purchaser pays RM 20,000 in cash
Seller will supply 5000 kg of certain type of rice at a pecified time
and
place
It is maily permited in the agriculture sector,
If farmer needs to take price in advance.
Conditions for salam

The price of the commodity must be known.


Price should be paid during the session of the contract.
The commodity should be described:
type,
quantity,
quality,
date,
place,
Should not same types
available in the market.
Manufacturing Sale ( Bay’al-Istisna’ )

Istisna’ is a contract in which seller provides both raw materials and labour
to manufacture a specifically defined product

The purchaser agrees to pay the price either immediately


Or
by instalments.
Conditions of istisna’

item to be manufactured should be described precisely.


nature,
type,
quality,
quantity,
Date of delivery.
istisna’ is applicable in which item that requires time to be made and the
common practice of the society.
Currency Exchange ( Bay’ al-Sarf )

Al-sarf : exchange of a price for a price in the same


or different currency.
Condition:
on the spot
or
hand to hand
and
should be difference
or
same if same currencies.
A bargain ( musawamah) sale

Musawamah is the most commonly used


In this sale,
the price of the sold item is determined by the seller
and the purchaser
based on bargaining and mutual agreement.
In this sale
no need to disclose the price and cost.
Bidding sale (al-muzaidah)

• It is a sale contract in which price is determined based on bidding among people.


That means price is fixed on the highest amount with agreement.
Trust Sales ( Buyu’ al-amanah )

In this sale, Seller must disclose to buyer the original cost of the goods including
all expenses.

Types:
Murabahah: cost-plus-profit sale

Tawliyah: sale with no profit

Wadi’ah sale with loss

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