Murabaha is a type of trust-based sale (buyu al-amana) whereby acquisition of assets is financed on short or relatively long term basis. The contract of murabaha (aqd al-murabaha) is entered into between a seller and buyer on cost plus mark-up basis. Payments are made either on a deferred or cash basis (deferred murabaha or cash murabaha).

The moment the purchase orderer (or murabaha buyer) has settled the outstanding debt owed to the Islamic bank (as the seller) without any obstruction (i.e., with complete takhliya and tamkin), the murabaha contract gets dissolved.

Alternatively, the Islamic bank and the purchase orderer or buyer may mutually agree to terminate the contract at any point in time prior to maturity date unless stated otherwise in the murabaha documentation.

The Islamic bank may request the purchase orderer to make a down payment (urbun/ urboun/ arboun/ arbun) at the contract date. This payment may be forfeited by the Islamic bank if the purchase orderer (buyer) opted for premature termination of the contract.