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Price Discount in Murabaha


If the seller in a murabaha transaction manages to obtain, as a purchaser, a discount on the object of sale which was ordered by the buyer (purchase orderer/ultimate purchaser), then the ultimate purchaser may benefit from the discount in the opinion of some fuqaha. This would lead to a reduction in the profit of murabaha by the same percentage as the discount even if the seller received the discount after the murabaha contract is entered into. Under shari’a, it is permissible to procure a discount on the purchase price and pass it on to the purchaser orderer, reflected in a lower selling price.

In contrast with above point of view, some other fuqaha opine that the ultimate purchaser can benefit from the discount only in the case the seller, as a purchaser, obtained it before the murabaha contract was concluded or at the time of making the promise to purchase by the purchaser orderer. Otherwise, the discount remains the entitlement of the seller.



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