Bay Al Dayn Case Study
ISSUES REGARDING BAY AL DAYN
Basically, the issues regarding bay al dayn can be divided into four part. Among them are about time of trading, involved parties, types of debt and types of sale. This four element contain many argument either the contract is permissible or impermissible. First of all the explanation will be further on time of trading al dayn. The time for trading al dayn can be divided into two part either with cash or spot basis (bay al dayn al-naqd) or by credit or deferred payment (bay al dayn al-nasiah). The scholar have a different opinion regarding the time of trading debt. If the debt was trade based on cash basis it is allowed, no issue arising regarding debt with spot basis. But, if the debt was sold by deferred by and large of classical jurist agree it is impermissible. This transaction most well known as “bay al kali bi al kali” and “bay al dayn bi al dayn” (Hashim Kamali, 2002). But, in money market most of debt was traded by cash, so this transaction shall not fall under category of bay al dayn al-nasiah. The transaction most concentrate and focus on sort or spot …show more content…
This sale of debt can be divided into three part which is bay al dayn at par value to issuer, bay al dayn at discount to third party (trader) and bay al dayn at discount to the first party (issuer). All of this types of sale on debt have their own justification either it is permissible or impermissible. All of the fiqh scholar was agreed on bay al dayn at par value to issuer. This permissible based on concept of hiwalah which is the transfer of debt by the principal debtor, with express permission from the principal creditor, to another party who then becomes responsible for repaying the principal creditor. (Siti Salwani, 2008). The next sale is bay al dayn at discount to third party (trader). This sale is impermissible at Middle East, while at Malaysia it is permissible but subjected to some condition which is:
Basically, the issues regarding bay al dayn can be divided into four part. Among them are about time of trading, involved parties, types of debt and types of sale. This four element contain many argument either the contract is permissible or impermissible. First of all the explanation will be further on time of trading al dayn. The time for trading al dayn can be divided into two part either with cash or spot basis (bay al dayn al-naqd) or by credit or deferred payment (bay al dayn al-nasiah). The scholar have a different opinion regarding the time of trading debt. If the debt was trade based on cash basis it is allowed, no issue arising regarding debt with spot basis. But, if the debt was sold by deferred by and large of classical jurist agree it is impermissible. This transaction most well known as “bay al kali bi al kali” and “bay al dayn bi al dayn” (Hashim Kamali, 2002). But, in money market most of debt was traded by cash, so this transaction shall not fall under category of bay al dayn al-nasiah. The transaction most concentrate and focus on sort or spot …show more content…
This sale of debt can be divided into three part which is bay al dayn at par value to issuer, bay al dayn at discount to third party (trader) and bay al dayn at discount to the first party (issuer). All of this types of sale on debt have their own justification either it is permissible or impermissible. All of the fiqh scholar was agreed on bay al dayn at par value to issuer. This permissible based on concept of hiwalah which is the transfer of debt by the principal debtor, with express permission from the principal creditor, to another party who then becomes responsible for repaying the principal creditor. (Siti Salwani, 2008). The next sale is bay al dayn at discount to third party (trader). This sale is impermissible at Middle East, while at Malaysia it is permissible but subjected to some condition which is: