---
title: "What is Bay al-muajjal (deferred-payment sale)? | IslamicOpenFinance™"
description: "A sale in which the goods are delivered now and the price is paid later, in one sum or in instalments."
url: https://islamicopenfinance.com/glossary/bay-muajjal/
lang: en-GB
source: "IslamicOpenFinance"
---

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

Sale-based contracts

# Bay al-muajjal (deferred-payment sale)

A sale in which the goods are delivered now and the price is paid later, in one sum or in instalments.

Bay al-muajjal is a sale with the price deferred: the buyer takes the asset immediately and pays on a later date or in instalments. The deferred price may be higher than the cash price, provided it is fixed when the contract is made and does not increase with later delay. Murabaha is often executed as a deferred-payment sale, and AAOIFI's accounting standard on murabaha also covers other deferred payment sales.

## Sources

- [AAOIFI, Financial Accounting Standards (issued standards list): FAS 28 Murabaha and Other Deferred Payment Sales](https://aaoifi.com/accounting-standards-2/?lang=en)

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/) [**Riba al-nasiah** Riba of deferment: an increase stipulated in return for extra time, most commonly on a loan.](https://islamicopenfinance.com/glossary/riba-al-nasiah/) [**Deferred profit** The profit on a deferred-payment sale that is recognised over the payment period rather than all at once at the sale date.](https://islamicopenfinance.com/glossary/deferred-profit/) [**Musawamah** A negotiated sale in which the seller does not disclose its cost; the price is simply agreed between the parties.](https://islamicopenfinance.com/glossary/musawamah/)

**Sale-based contracts**

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

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