The Bay'al-Wafa Contract from the Perspective of Hanafi Jurisprudence

Abstract

The article discusses the contract of Bay' Wafa' (Sale with Promise) in the context of Islamic jurisprudence (Hanafi Fiqh). Bay’ al-Wafa is a term within a contract that allows the buyer to return the goods to the seller, typically in exchange for a loan, after taking possession of the goods. If the buyer defaults on the loan, the seller has the right to retain the goods. The importance of defining Bay’ al-Wafa in Hanafi Fiqh is to clearly outline the ruling of the contract and to familiarize oneself with the terms of Bay' Wafa'. The objectives of this study include elucidating the concept and significance of Bay’ al-Wafa and comparing it with other similar contracts such as Rahn (pledge), highlighting the practical implications and examples of Bay' Wafa'. In this study, written sources are extensively utilized, with efforts made to cite reputable sources. However, it is crucial to ensure that one's own interpretations are not mistaken for direct quotations from these sources, and to properly reference borrowed ideas. Moreover, it is important to ensure that secondary sources are also appropriately acknowledged. This study aims to establish that Bay’ al-Wafa is a valid contract in Hanafi Fiqh and can be applied in various circumstances, particularly in conjunction with the concept of Rahn. Similarly, if we lookat the present time, many people are not familiar with the concept of a sale contract (Bay' wa Fa') and this contract is not visible in practice. The reason for this is that people are largely unaware of this contract. This is why, nowadays, people do not repay their debts. If individuals were to fulfill their debts, then others would also repay their loans. According to Hanafi jurisprudence, this is a permissible contract, and it should be utilized in practice.