Al-Baraka Bank – Features of Murabaha and Leasing: Bai’ Mu’ajjal


(Sale on a deferred payment basis)

1. A sale in which the parties agree that the payment of the purchase price shall be deferred is called a “Bai’Mu’ajjal”.

2. Bai’Mu’ajjal is valid if the due date of payment is fixed in an unambiguous

3. The due time of payment can be fixed either with reference to a particular date or by specifying a period like three months nut it cannot be fixed with reference to a future event the exact date of  which is unknown or is uncertain. If the time of payment is unknown  or uncertain, the sale is void.

4. If a particular period is fixed for payment, for example one month, it will be deemed to commence from the time of delivery unless the parties have agreed otherwise.

5. The deferred price may be more than the cash price, but it must be fixed at the time of sale.

6. Once the price is fixed it cannot be decreased in case of earlier payment nor can it be increased in cash of default.

7. In order to pressurize the buyer to pay the instalments promptly, the buyer may be asked to promise that in case of default, he will donate some specified amount for charitable purpose on behalf of the buyer.

8. If the payment of the commodity is to be made by way of instalments, the seller may stipulate a condition on the buyer that if he fails to pay any instalment on its due date, the remaining instalments will become due immediately.
9. In order to secure the payment of the purchase price, the seller may ask the buyer to furnish a security in the form of a mortgage or in the form of a lien or a charge on any of his existing assets.

10. The buyer can also be asked to sign a promissory note or bill of     exchange but the note or the bill cannot be sold to a third party at a price different from its face value.

This piece is taken from the website of Al-Baraka Bank.

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One thought on “Al-Baraka Bank – Features of Murabaha and Leasing: Bai’ Mu’ajjal

  1. immobile A palermo

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    and let me tell you, you’ve hit the nail on the head. The issue is something which too few folks are speaking intelligently about. I am very happy that I found this during my hunt for something relating to this.


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