Arabic (محاباة) for deference in a transaction. More specifically, it means a favor extended in an exchange-based transaction, either by the buyer paying more, or the seller charging less than the normal price. It may also involve a principal directing his agent to charge less than the normal price when selling or to pay more than it when buying. Deference in ba’i/ bay’ does not affect contract validity, according to the majority of fuqaha (jumhur).
Islamic Finance
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