---
title: "What is Bay al-bara'ah (sale on an as-is basis)? | IslamicOpenFinance™"
description: "A sale in which the seller is released from liability for some or all defects in the goods, by agreement with the buyer."
url: https://islamicopenfinance.com/glossary/bay-al-baraah/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Sale-based contracts](https://islamicopenfinance.com/glossary/#sales)

Sale-based contracts

# Bay al-bara'ah (sale on an as-is basis)

A sale in which the seller is released from liability for some or all defects in the goods, by agreement with the buyer.

Bay al-bara'ah is a sale in which the seller stipulates that it is not responsible for some or all defects in the goods. AAOIFI's murabaha standard allows an institution to include such a clause, but not to exclude responsibility for destruction before the customer takes possession or for a shortfall in quantity, and it recommends that the institution assign to the customer its own rights against the supplier. The clause shifts defect risk to the buyer, so the customer should see it plainly before signing.

## Sources

- [AAOIFI Shari'ah Standards, English edition (full text, PDF): Shari'ah Standard No. 8, Murabahah, item 4/9](https://aaoifi.com/wp-content/uploads/2017/12/Shariaa-Standards-ENG.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Murabaha** A sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.](https://islamicopenfinance.com/glossary/murabaha/) [**Khiyar (option to revoke or confirm)** A right of one or both parties to confirm or revoke a contract, for example because of a defect, a stipulated condition or a cooling-off period.](https://islamicopenfinance.com/glossary/khiyar/) [**Qabd (possession)** Taking possession of an asset, actually or constructively, which many contracts require before the asset can be sold on.](https://islamicopenfinance.com/glossary/qabd/) [**Wakalah** Agency: one party appoints another to act on its behalf, with or without a fee.](https://islamicopenfinance.com/glossary/wakalah/)

**Sale-based contracts**

1. [Murabaha](https://islamicopenfinance.com/glossary/murabaha/)
2. [Musawamah](https://islamicopenfinance.com/glossary/musawamah/)
3. [Bay al-muajjal (deferred-payment sale)](https://islamicopenfinance.com/glossary/bay-muajjal/)
4. [Salam](https://islamicopenfinance.com/glossary/salam/)
5. [Istisna](https://islamicopenfinance.com/glossary/istisna/)
6. [Tawarruq](https://islamicopenfinance.com/glossary/tawarruq/)
7. [Bay al-sarf (currency exchange)](https://islamicopenfinance.com/glossary/bay-al-sarf/)
8. [Murabaha to the purchase orderer](https://islamicopenfinance.com/glossary/murabaha-purchase-orderer/)

[All 221 terms](https://islamicopenfinance.com/glossary/)