English for al-wa’ad bil ba’i/ bai’/ bay’ (الوعد بالبيع). It is usually embedded in exchange-based contracts (uqud al-mua’wadhah) such as ba’i/ bay’/ bai’ (sale) or lease (ijarah). For example, an ijarah contract may be combined with a promise to sell the underlying property (subject matter of the lease) at the end of the lease period.

This promise is often used when the seller doesn’t want to dispose of his property (or asset) at once but rather prefers to take some time contemplating the transaction or using the object of sale for a period of time. Therefore, the seller promises the prospective buyer that the sale transaction would be concluded at or by a specific future date. Wa’ad could be binding (mulzim) or nonbinding (ghair mulzim). If binding, the seller is under obligation keep the promise and proceed with the transaction at the specified date. Otherwise, it is discretionary to proceed or not.