Section 01 / 11

Module Introduction — The Architecture of Islamic Sales

8 min

How This Domain Connects to Shari'ah Fundamentals

Foundational ConceptHow It Applies in This Domain
GhararEvery sale contract must have a known subject matter, known price, and deliverable goods — or it's void for excessive gharar. Salam and Istisna'a are the controlled exceptions.
Combination of ContractsMurabahah to the Purchase Orderer combines promise + agency + purchase + sale. Tawarruq combines credit sale + spot on-sale. Each combination must pass the four controls.
Promise/Wa'adThe customer's promise to purchase in Murabahah is what makes the product commercially viable. The classical rules on the bindingness of unilateral and bilateral promises directly govern Murabahah procedures.
Profit CalculationMurabahah profit must be a fixed amount or percentage of cost. Benchmarks may be used for price discovery but the final price must be fixed. Credit pricing above cash pricing is permissible but late payment increases are not.
Fatwa EthicsThe Shari'ah board must approve every product structure. Many controversies in trade-based financing (organized tawarruq, commodity Murabahah mechanics) require careful fatwa governance.

The Fundamental Rule of Islamic Sales

"You cannot sell what you do not own and possess." This single rule generates almost everything in this domain: Murabahah requires the bank to actually OWN the goods before reselling; Salam is a PERMITTED EXCEPTION (sell what doesn't yet exist, with strict conditions); Istisna'a is the SECOND PERMITTED EXCEPTION (manufacturing/construction contracts); Possession (Qabd) defines exactly WHEN ownership transfers; and Tawarruq tests the boundaries of genuine ownership.

Product Comparison Matrix

FeatureMurabahahSalamIstisna'aTawarruq
Subject exists at contract?YES — must exist and be owned by sellerNO — sold before existenceNO — manufactured/built after contractYES — commodity must exist
Price payment timingDeferred (installments)FULL price upfront at contractFlexible (upfront, installments, or deferred)Deferred (credit purchase) then spot on-sale
Price disclosureCost + markup disclosed (trust sale)Price agreed; cost not disclosedPrice agreed; cost not disclosedCost + markup disclosed (same as Murabahah)
Delivery timingImmediate or near-immediateFuture (specified date)Future (upon completion)Immediate or constructive
Can price change after contract?NONONO (but scope changes may adjust price)NO
Key risk for the bankOwnership risk between purchase and resaleDelivery risk (seller may fail to deliver)Completion risk (manufacturer may fail)Reputational + Shari'ah compliance risk