Definition and Distinction from Hamish Jiddiyyah
Arboun (عربون): An amount paid by the buyer as part of the purchase price. If the buyer proceeds, the Arboun is credited against the price. If the buyer REVOKES, the seller KEEPS the Arboun.
Hamish Jiddiyyah (هامش الجدية): A security deposit in Murabahah that is NOT part of the price. If the customer defaults, the bank deducts only ACTUAL DAMAGES and must return the remainder.
| Feature | Arboun | Hamish Jiddiyyah |
|---|---|---|
| Part of the price? | YES — credited against price | NO — security deposit |
| If buyer proceeds | Deducted from total price | Returned or applied to price by agreement |
| If buyer revokes | Seller KEEPS the Arboun | Bank deducts ACTUAL DAMAGES only, returns remainder |
| Risk to buyer | Forfeits the entire deposit | Forfeits only actual damages |
Hamish Jiddiyyah is doctrinally distinct from Arboun. The contemporary structuring view nevertheless permits a Murabahah to be built on an Arboun mechanism instead — in which case, on revocation, the bank may keep the Arboun, but in line with the majority objection to taking another's property without compensation, it must refund any amount exceeding its proven actual damage.
Period, Specification, and the Calibration of Forfeiture
Whether the Arboun period must be specified depends on the underlying contract. In a sale, an unspecified period is generally tolerated because the surrounding sale terms supply the contractual framework. In an Ijarah and similar continuing contracts, however, the period for which the buyer holds the option must be precisely stated — an open-ended option in a lease introduces the same gharar that voids any unspecified-duration lease.
- Buyer revokes the contract — the seller keeps the Arboun. This is the doctrinal core of the Hanbali concession that distinguishes Arboun from a forbidden penalty.
- Seller revokes the contract — the buyer is entitled to recover the Arboun, since the buyer's commitment was conditional on the seller honouring his side. The forfeiture rule operates only against the breaching party.
- Both parties proceed — the Arboun is credited against the price as advance payment.
- The Arboun materially exceeds proven loss — under the contemporary structuring view that calibrates Arboun to actual damage, the institution must refund the excess. Under the strict classical Hanbali position the seller may keep the full amount; the calibrated view is the route most contemporary Shari'ah-governance frameworks adopt to harmonise with the majority Hanafi/Shafi'i/Maliki concern.