NON-CASH AGREEMENT IN PURCHASING BUILDING MATERIALS ACCORDING TO THE THEORY OF BAI' AL-DAIN

A Case Study in Pidie District of Aceh Province, Indonesia

Abstract

In cash sale and buy transactions, the associated risk may adversely affect the entrepreneur in the role of seller. Primarily attributable to the pricing conditions of materials. Business entities will encounter challenges in retrieving goods from distribution parties, particularly when material prices escalate substantially. This situation presents a risk of losses, potentially arising from consumers failing to honour the established agreement, such as settling the cost of purchased building materials within the designated timeframe. This serves as a recommendation for building material entrepreneurs to formalize contracts with buyers by documenting the identities of the involved parties, specifications of the building materials to be acquired, and payment terms. This is crucial as numerous buyers fail to adhere to the agreed-upon payment schedule, resulting in substantial delays that can adversely affect the entrepreneur. The author seeks to examine the agreement process between parties involved in the buying and selling of building materials inside the district. Indra Jaya examines the effects of cash transactions in the purchase and sale of building materials within the Indra Jaya sub-district, as well as the perspective of the Bai' Al-Dain contract concerning the agreement reached by the parties involved in these cash-based transactions.