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Islamic Finance




Bay’ al-Mudtarr


A type of sale (bay’) in which the seller resorts to selling his property (assets, belongings, etc) under duress or because he is compelled to do so for whatever reason. Normally, buyers will not pay the prevailing market price, but rather attempt to force the seller into accepting a lower price (usually very much lower price). From a shari’a perspective, if the contract of sale involves coercion (ikrah), it will be considered defective (batil), i.e., it has no legal effect. However, the contract of sale will be non-commendable or reprehensible (or makrooh) by shari’a if the need to sale arises from circumstances such as the set-off or payment of debt, securing the money needed to buy necessities of life, etc.

This sale is known in English as sale under duress.



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