Bay'
بيع
Pronunciation: BAY
A sale contract — the foundational transaction type in Islamic commercial law.
Definition
The Arabic term for sale or sale contract. Bay' is the foundational commercial transaction in Islamic finance.
For a bay' to be valid under Shariah, it must involve: (1) a clearly identified subject matter that exists at the time of sale, (2) a known price, (3) willing buyer and seller, and (4) the goods must be halal. Various Islamic financing structures (Murabaha, Salam, Istisna'a) are specialized forms of bay' with specific conditions.
Related Terms
Murabahaمرابحة
A cost-plus sale where the seller discloses the original cost and adds a transparent, agreed-upon markup.
Salamسلم
A forward sale — full payment upfront for goods delivered at a future date.
Istisna'aاستصناع
A manufacturing or construction contract with pre-agreed price, specifications, and delivery timeline.
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Quick Answer
Bay' (بيع) — A sale contract — the foundational transaction type in Islamic commercial law. The Arabic term for sale or sale contract. Bay' is the foundational commercial transaction in Islamic finance.
Key Takeaways
- A sale contract — the foundational transaction type in Islamic commercial law.
- Category: Contracts
- Related: Murabaha, Salam, Istisna'a
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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