Contractual Intermediary(redirected from Contractual Intermediaries)
A financial institution that stands between counterparties in a transaction. For example, in the sale of a house, a bank usually serves as a contractual intermediary by providing a mortgage to the homebuyer. In some non-traditional transactions, a bank may buy a product (e.g. corn) and immediately re-sell it for a profit to a third party. Most transactions requiring a loan to one of the parties, including intermediaries. See also: Murabaha.