Bai al-tawrid is the deposit or earnest money that the buyer gives the seller, on the understanding that it will be part of the buying price once the sale is finalized. In the event that the sale falls through the seller keeps this initial amount.

Question

Quizplus · Accepted Answer

Bai al-tawrid refers to a forward sale or supply contract in Islamic finance, not to earnest money or deposit. The concept described is more akin to "earnest money" or "down payment" in conventional terms, but not specifically Bai al-tawrid.

Bai Al-Tawrid Is the Deposit or Earnest Money That the Buyer