Bay’ al-Wadiah

As a term, wadîah refers to the sale of an item for less than its cost. It is used in their meaning of “harm (al-hasâra), tribute (kharaj) and -Islamic- tithes (ushr), and allowance/discount (al-hatîta)” according to the dictionary. According to the fuqaha, the literary meaning of the wadîah is the sale of something known (malûm) at the sale price (semen), despite its deficiency, for less the original price. To define it more simply, bay’ al-wadiah is the transaction in which the price is determined to be absent from the re’s al-mâl or to its detriment. In simpler terms, it refers to the sale of a product at a price below its purchasing price or cost. It is evident that it is also used by jurists to imply wadîah, loss, and debt reduction.