A credit sale which has a fixed term at the end of which the buyer has to pay the agreed price. This type of deferred payment sale (where price or thaman is deferred to a future date) usually gave rise to riba in the pre-Islamic era where lenders used to manipulate the original price if the borrower failed to pay back at the stipulated time. In this form, it was considered an invalid sale. However, to validate it, the contract of sale should be one in which bilateral possession (taqabudh) is mandatory.
For example, it is impermissible to sell gold or silver for a deferred price because this results in riba al-nasi’ah (since modern-day money is considered equivalent to gold and silver in terms of monetary function).
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