Abstract

Deferred sale, in the Islamic Banking and Financeworld widely known as Bai’ bi thaman ajil, is used as an extension toProfit-sale ; both sales complement each other. The Profitsalesells the commodity with profit over the cost price, and BBA plays the roleof receiving that payment on deferred or instalment basis. BBA has becomethe “premier consumer financing facility” for the Islamic financial institutions. This paper deals with deferred sale precisely. It looks into its origin andits transition from void to valid sale. Its application as trade contract and itsmodern application as financing tool is analysed in the light of the maqāṣidSharīʿah.