Search
Generic filters
Filter by Categories
Accounting
Banking

Islamic Finance




Ba’i al-Arboon


A type of sale (ba’i) which is effected using down payment or advance money (arboonعربون) with the condition that if the buyer accepts to complete the sale by taking the object of sale, then the down payment will be treated as part of the selling price (thaman). Otherwise, if the buyer chooses to rescind the sale (refrain from the transaction), the advance money will be forfeited. In this sense, this sale comes with an option (khiyar) to rescind the contract by forgoing the down payment as a penalty on the refraining buyer.

Ba’i al-arboon (بيع العربون) is Arabic for sale with a nonrefundable down payment.



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    Your email address will not be published.*