A sale (ba’i) where the seller parts with the underlying goods for less than the principal amount or the original cost of acquisition (i.e., with a discount on the original price. Stated another way, it is a sale in which the seller incurs a loss on underlying goods.
This may happen for multiple reasons including fire sales, liquidations, reaction to adverse market conditions, etc.
Bai al-hatita (بيع الحطيطة) is Arabic for a discount sale or sale at a discount.
