Literally: al-wadi'ah means decrease and diminishment. Technically: a sale in which the subject matter is exchanged at a discount from its original price, i.e., selling at a specific loss; also called: bay' al-hatitah or al-naqisah. If bay' al-wadi'ah satisfies all the required conditions then it is permissible. It is one form of trust sale (bay' al-amanah). Jurists also used the term wadi'ah for a loss and for discount of a debt. For further details see ISRA Compendium.
|Underlying Concept for Islamic Block Discounting Transaction|