A contract of sale (ba’i or bay’) in which the seller reveals (or is under obligation to reveal) to the buyer his actual cost and accepts a marked-down price for the subject-matter. Therefore, the seller incurs a loss from this sale. For example, a bank could sell its holdings of a given metal commodity for less than the acquisition cost for its own short- or long-term considerations (e.g. it might be in dire need of cash). However, there is a considerable deal of counterparty risk arising from any potential dishonesty on the part of the seller as to the “true” disclosure of actual cost.

Ba’i al-wadhe’eah is a form of buyu’ al-amanah (trust-based sales).

It is also known as ba’i al-hatitah (ba’i al-hateetah), ba’i al-mukhasarah, ba’i al-mahattah, or ba’i al-naqeesah.