The Jurisprudential and Legal Status of Benevolent Sale (Bayʿ al-Muḥābātī) in Sales Below the Fair Market Value in Islamic Jurisprudence

Abstract

The benevolent sale (Bayʿ al-Muḥābātī) is one of the forms of sale contracts recognized in Islamic jurisprudence and civil law, in which the seller transfers a commodity or property to the buyer at a price significantly lower than its real or customary market value. In such transactions, the seller’s intention is often driven more by affection, personal attachment, or non-financial considerations than by commercial motives. This type of sale commonly occurs within familial or friendly relationships and may serve purposes such as support, concealed donation, or the transfer of property while avoiding taxation or formal procedures. From a legal perspective, a benevolent sale is regarded as a valid contract of sale, provided that the essential conditions of contractual validity—such as intention, consent, legal capacity, and the specification and lawfulness of the subject matter—are fulfilled. Nevertheless, in cases where the benevolent nature of the transaction results in harm to third parties or the infringement of others’ rights, such as issues concerning heirs, fictitious transactions, or fraudulent conveyance to evade debts, the transaction may be subject to legal challenge. In the Iranian legal system, identifying and thoroughly analyzing benevolent sales is of great significance from legal, fiscal, and judicial perspectives.