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Islamic Finance

  Islamic Finance   |   Terms
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  • March 7, 2022
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Badal

The counter-value in a commutative contract (an exchange-based contract or a barter exchange). In other words, it may refer to the price (thaman) that is paid or received against an object of sale in a contract of sale (ba’i) or the rent (ujrah) that is paid or received against a usufruct (manfa’ah) in a contract of lease (ijarah), and so on.

Badal is an Arabic term (بدل) that translates as compensation or payment of a counter-value. It literally means a substitute of something for something else.


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