Filter by Categories
Accounting
Banking

Islamic Finance




Buyu Muharramah


Arabic (بيوع محرمة) for prohibited sales; a category of buyu (pl. of ba’i or bay’) that consists of all sales that are impermissible under shari’a due to a strict prohibition involving 1) the object of sale: a prohibited item such as pork and wine, etc. 2) the existence of a major prohibition element, such as riba (as in riba-bearing sales, or buyu ribawiah) or excessive gharar (as in buyu al-gharar) associated with the contract or transaction, 3) the existence of a condition/ stipulation that transpires into riba or excessive gharar elements and 4) incorporation of a condition/ stipulation that contradicts or defies the particular purpose of the contract (muqtadha al-aqd).

Examples of sales prohibited for inclusion of riba: ba’i al-einah, and for association with excessive gharar (gharar fahish): ba’i al-munabazhah and ba’i habal al-habalah, and for existence of both riba and excessive gharar: ba’i al-dain.

Examples of a sale embedded with invalid stipulation that renders it impermissible: ba’i wa salaf.



ABC
The last three decades have witnessed the modern rebirth of Islamic finance both in terms of literature and practice. Islamic banks and ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*