Agreement with a company to supply it with materials, where they set the prices, then he goes to the market, buys them, and brings them to them
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Fatwa number ( 21241 )
Q: A merchant deals with a government company such that this company requests him to buy for it what it needs of means and materials, and others. The transaction is conducted as follows: The company submits a preliminary list of what it wants from the orders. The merchant then puts prices on this list, either because he knows them beforehand, or he goes and looks at what is circulating in the markets, adding the share of profit he will take. Then he returns the list to the company with the final price—that is, the price of the item plus the value of the profit. The company signs and authenticates this list after referring it to the financial monitoring office
to authenticate it. Then the company returns the list to the merchant again. The merchant goes and buys the item, and makes a list or document of sales; that is, what is called the invoice, and delivers the item to the company, which transfers the final price of the item to the merchant's account in the bank. The company does not deal except in this previously described manner. Question: What is the ruling on this transaction? And what is the ruling on the money the merchant acquired from this transaction in the past, knowing that he was unaware of the ruling? What are the consequences of that? And how should this merchant act?
A: It is not permissible for the merchant to sell to anyone something that is not with him and that he does not own, due to the prohibition of the Prophet (peace and blessings be upon him) of that. It is established narrated by Abu Dawud and al-Tirmidhi and al-Nasa'i . As for what the merchant acquired from this transaction in the past while he was unaware of the ruling, we hope that there is no blame on him for it. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad and his family and his Companions.
Q: A merchant deals with a government company such that this company requests him to buy for it what it needs of means and materials, and others. The transaction is conducted as follows: The company submits a preliminary list of what it wants from the orders. The merchant then puts prices on this list, either because he knows them beforehand, or he goes and looks at what is circulating in the markets, adding the share of profit he will take. Then he returns the list to the company with the final price—that is, the price of the item plus the value of the profit. The company signs and authenticates this list after referring it to the financial monitoring office
to authenticate it. Then the company returns the list to the merchant again. The merchant goes and buys the item, and makes a list or document of sales; that is, what is called the invoice, and delivers the item to the company, which transfers the final price of the item to the merchant's account in the bank. The company does not deal except in this previously described manner. Question: What is the ruling on this transaction? And what is the ruling on the money the merchant acquired from this transaction in the past, knowing that he was unaware of the ruling? What are the consequences of that? And how should this merchant act?
A: It is not permissible for the merchant to sell to anyone something that is not with him and that he does not own, due to the prohibition of the Prophet (peace and blessings be upon him) of that. It is established
From Hakim ibn Hizam (may Allah be pleased with him), that he said: I came to the Messenger of Allah (peace and blessings be upon him) and said: A man comes to me asking me for something from the sale that is not with me. Should I buy it for him from the market and then sell it to him? He said: Do not sell what is not with you
عن حكيم بن حزام _ رضي الله عنه _ أنه قال: أتيت رسول الله صلى الله عليه وسلم فقلت: يأتيني الرجل يسألني من البيع ما ليس عندي، أبتاع له من السوق ثم أبيعه، قال: لا تبع ما ليس عندك
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.