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Home > QFINANCE Dictionary > Definition of contract purchasing

Definition of

contract purchasing

Operations & Production

process of buying product through leasing a mechanism for buying leased goods. In contract purchasing, a purchaser agrees to buy goods or equipment to be paid for in a series of installments, each comprising a proportion of the capital and an interest element. After a final payment, legal ownership passes to the user.

contract purchasing - Related Articles

  • Sukuk Issuance and Issues in Purchase Undertakings

    Best Practice

    on which such sale and purchase will actually take place. This is particularly applicable to early redemption rights (whether arising as a result of an event of default or otherwise). To address this requirement, an undertaking is used. However, shariah also requires that contracts arising out
    By Barry Cosgrave

  • Practical Purchasing Procedures

    Checklists

    This checklist outlines a practical approach to purchasing.

  • Islamic Modes of Finance and the Role of Sukuk

    Best Practice

    sale contract where the price is based on a cost plus profit margin formula. The contract has been modified to include bai ajil (deferred payment sale) and renamed as “Murabaha to the Order of the Purchaser.” According to the new contract, the bank’s customer orders the purchase of a prescribed
    By Abdel-Rahman Yousri Ahmad

  • Multiparty and Multicontract Arbitration

    Best Practice

    In contrast to multiparty arbitration that involves several parties, multicontract proceedings involve several claims arising out of several contracts between the same two parties. For example, two parties may enter into a purchase agreement and, at the same time, agree first on a finance agreement (where the seller finances the purchase) and second on a security agreement (to secure the finance of the purchase
    By Stavros Brekoulakis

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Definitions of ’contract purchasing’ and meaning of ’contract purchasing’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’contract purchasing’ and other financial terms with our online QFINANCE Financial Dictionary.

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