B

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Word	Meanings
Bad Debt	A debt that is not collectible and is therefore worthless to the creditor. .
Bai	Stands for “sale” or contract of sale. It is often used as a prefix in referring to different sales-based modes of Islamic finance, such as Murabaha, Istisna’a, and Salam.
Bai	A comprehensive term that applies to sale transactions, exchange.
Bai ad Dayn	(1) Sale of debt or debt instruments.
	(2) The sale of debt or a liability at a discount or negotiated price.
	(3) Sale of tangible objects such as goods (as  opposed to sale of services or rights.
	(4) Sale of debt. According to a large majority of fuqaha’, debt cannot be sold for money, except at its face value, but can be sold for goods and services.
	(5) Debt financing − the provision of financial resources required for production, commerce and services by way of sale/purchase of trade documents and papers. Bai al-dayn is a short-term facility with a maturity of not more than a year. Only documents evidencing debts arising from bona fide commercial transactions can be traded.
Bai al Amanat	Fiduciary sales like murabaha and wadi'ah.
Bai al Arboon	(1) A sale of downpayment with the condition that if the buyer takes the commodity, the downpayment will become part of the selling price and if he does not purchase the commodity, the advance money will be forfeited.
	(2) A form of sales contract similar to an option, where only a small portion of the price is paid. The buyer will then hold an option for a specific length of time (days or months, but not more than one year) to either go through with the purchase or cancel the contract. If the buyer decides to go through with the purchase, he will than have to pay the rest of the price. If the buyer decides to walk out, then the portion of the price that has been paid is retained by the seller.
	(3) (See Arbun.)
Bai al Ghaib	Sale of absent or concealed goods (without knowing their features/specifications).
Bai al Gharar	(1) Trading in risk, where the Arabic word ghararis taken to mean "risk".
	(2) (See Gharar.)
Bai al Hasat	Sale where the subject matter depends on the fall of a stone or pebble; prohibited due to Gharar.
Bai al Inah	(1) A contract that involves the sale and buy back of assets by a seller.
	(2) Double sale by which the borrower and the lender sell and then resell an object between them, once for cash and then for a higher price on credit, with the net result of a loan with interest –prohibited.
	(3) A sale by one party at a higher price on deferred payment, and they then buy back at a lower price to realize immediate cash for the other party. This structure is normally practiced in Malaysia, but is questionable in some other Islamic finance markets, such as the Gulf Cooperation Council and South East Asia, as they consider it contrary to the Shari’a rulings.
	(4) Also termed as  Bai ah Inah. Buying an object for cash then selling it to the same party for a higher price whose payment is deferred so that the purchase and sale of the object serves as a ruse for lending on interest. At a later date, the bank will repurchase the asset and pay the client in cash terms. Similar to tawarruq however intawarruq a third party is involved as an intermediary.
	(5) Buying an object for cash then selling it to the same party for a higher price whose payment is deferred so that the purchase and sale of the object serves as a ruse for lending on interest. It equates to a double sale by which the borrower and the lender sell and then resell an object between them, once for cash and once for a higher price on credit, with the net result of a loan with interest. Used by some Islamic banks, it refers to selling of an asset to the customer through deferred payments. At a later date, the bank will repurchase the asset and pay the client in cash terms.  Thus, Bai al Inah comprises two agreements; in the first agreement, the bank sells an identified asset to the customer at an agreed price and the customer can complete the purchase of bank's asset by payment in installments over an agreed period; in the second agreement, the bank re-purchases the same asset from the customer at a lower price and on completion of the second transaction, the bank will pay the lump sum amount in immediate cash at the price agreed between them. The difference in the price is the bank's profit, which is determined in advance. This arrangement is prohibited by the majority of Shari’ah scholars as it also equates to a sale and buy-back arrangement. Also known as Bay-al Inah or Inah. Similar to tawarruq however, intawwaruq a third party is involved as an intermediary.
Bai al Inah Contract	Sale-and-buyback contract
Bai al Khiyar	(1) Option to rescind the sale.
	(2) Sale with an option of one party to rescind the contract within a specified time.
	(3) (See Khiyar.)
Bai al Kkali bil Kali	A sale in which both the delivery of the object  of sale and the payment of its price are delayed. It is similar to a modern forward  sale contract.
Bai al Majhul	A sale in which the object of sale or its price or the time of payment remains unknown and unspecified – lacking any material information.
Bai al Muajjal	(1) Deferred payment contract, where the bank /lender buys the assets on behalf of the business owner. The bank then sells the assets to the client at an agreed price, which will include a mark-up as the bank needs to make a profit. The business owner can pay the total balance at an agreed future date or pay by instalments over a pre-agreed period. This is similar to a murabaha contract since it is also a credit sale.
	(2) Lit. a credit sale or deferred payment contract. Technically, a financing technique adopted by Islamic banks, It is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in installments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. The concept is the same as Bai Bithaman Ajil (BBA).
	(3) Lit. a credit sale. Technically, a financing technique adopted by Islamic banks; it is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in instalments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price, but generally it is higher than the spot price.
Bai al Muajjal Contract	Deferred-payment sale
Bai al Muallaq	Suspended sale – a sale transaction, the effectiveness of which is related to any future condition or action.
Bai al Mudaf	A sales contract in which delivery of both the commodity and the payment is deferred - for example forward sales in modern times. Such contracts are not permitted by the Shariah.
Bai al Muqayaza	Exchange of goods with goods is called barter.
Bai al Mutlaq	Conclude a sale without any option to rescind.
Bai al Muzayadah	(1) Sales by auction.
	(2) Sale by auction. Other names for this principle used by past Islamic jurists include bai al-fuqara, bai al-man kasadat bidha’atuhu, bai al-mahawij, and bai al-mafalis.
Bai as Sarf	Sale of gold, silver or other monetary units on both sides.
Bai an Naqdi	Buying and selling on a cash basis
Bai as Salam	(1) Pre-paid purchase.
	(2) Deferred-payment sale or forward sale contract (used primarily in agriculture)
	(3) This term refers to advance payment for goods which are to be delivered later. Normally, no sale can be affected unless the goods are in existence at the time of the bargain. But this type of sale forms an exception to the general rule, provided the goods are defined and the date of delivery is fixed. One of the conditions of this type of contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is usually applied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market.
	(4) A contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of the contract. According to normal rules of the Shar¯ı´ah, no sale can be executed unless the goods are in existence at the time of the bargain, but Salam sale forms an exception given by the holy Prophet himself to the general rule, provided the goods and their prices are defined and the date of delivery is fixed. It is necessary that the quality of the commodity intended to be purchased is fully specified, leaving no ambiguity leading to dispute. The objects of this sale are goods and not media of exchange like gold, silver or currencies, because these are regarded as monetary values, the exchange of which is covered under the rules of Bai‘ al Sarf, i.e. hand to hand without delay. Barring this, Bai‘ Salam covers almost everything which is capable of being definitely described as to quantity, quality and workmanship, subject to the fulfilment of other conditions for valid Salam.
	(5) (See Salam.)
Bai as Sarf	(See Sarf.)
Bai Baatel	(See Bai Batil.)
Bai Batil	Invalid sale – having no effect in respect of rights and liabilities of the parties.
Bai Bil Wafa	Sale with a right of the seller to repurchase (redeem) the property by refunding the purchase price – basically a pledge; treats the sold asset as collateral until the amount is paid back by the other party to sale; not permissible if the resale of the property to the original seller is made a condition for the initial sale.
Bai Bithaman Ajil (BBA)	(1) Another term used for Bai Mu'ajjal.
	(2) Deferred payment sale by instalments.
	(3) This contract refers to the sale of goods on a deferred payment basis. Equipment or goods requested by the client are bought by the bank, which subsequently sells the goods to the client an agreed price that includes the bank’s mark-up (profit). The client may be allowed to settle payment by instalments within a pre-agreed period, or in a lump sum. Similar to a murabaha contract, but with payment on a deferred basis.
	(4) This contract refers to the sale of goods on a deferred payment basis; a deferred payment sale.  Islamic banks use it as a mode of  financing for purchase and sale or deferred payment of consumer goods. Technically, this financing facility is based on the activities of buying and selling.   There is no interest charged. Equipment or goods required by the customer are purchased by the bank which subsequently sells the goods to the customer at an agreed higher price; payment is deferred and the customer is allowed to settle payment either by instalments or in a lump sum within a pre-agreed period. The deferred payment price which is the bank’s sale price includes a profit mark-up for the bank agreed by both parties.   Similar to a Murabaha contract, but with payment on a deferred basis known as Murabaha Muajjal.
Bai Bithaman Ajil Contract	Deferred-payment sale
Bai Contract	Sales/purchase contract
Bai Istijrar Contract	Supplier contract
Bai Istisna Contract	Order sale contract
Bai Murabaha	Sale at cost price plus a mutually agreed profit – bargaining on profit margin on the cost price. (See Murabaha)
Bai Musawamah	Sale without any reference to the cost price to the seller – bargaining on price.
Bai Tawliyah	Sale at cost price – to facilitate or serve others.
Bai Wadhiah	Sale with loss – at a price less than the cost price.
Bai Wafa	Buy-back, sale and repurchase, a contract with the condition that when the seller pays back the price of goods sold, the buyer returns the goods to the seller.
Bai Was Salaf	A conditional contract combining selling and lending, like one man saying to another: “I purchase your goods for such and such if you lend me such and such” – invalid.
Baiti Al Mal	Public treasury of an Islamic State.
Balance Sheet	Financial statement presenting measures of the assets, liabilities and owner's equity or net worth of business firm or nonprofit organization as of a specific moment in time. .
Barakah	Blessing.
Barnamaj	Catalogue or list of contents in a sale consignment.
Batil	Null and void. Invalid sale or contract. One that does not fulfil the conditions relating to offer and acceptance, subject matter or the consideration and possession or delivery of the subject matter or involves some contravention of the Shari'ah, such as the involvements of riba, gharar or qimar. Also termed as Aqd Batil and Bai Baatel. (Opp.Sahih.)
Batil Contract	Void contract
Bezant	Gold currency
Bidaa	Innovation.
Bridge Loan	Short-term loan to provide temporary financing until more permanent financing is available.
Buyoo al Amanat	Fiduciary sales like Murabaha, Tawliyah and Wadhi‘ah.

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