Advancing the price and deferring the item
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Fatwa number ( 21875 )
Q: I submit the following question to your Eminence, hoping for Allah’s help and then yours
in granting an answer, and I thank you in advance: 1 - I wish to represent a company by acting as its agent in the Kingdom and displaying samples of its products. If a buyer wishes to purchase from this company, I send a message to the company to obtain the prices and the timeframe in which the order can arrive. I take from the buyer 30% of the order’s value, and the remainder when the order arrives from the company. Is this transaction permissible? 2 - Sometimes a tender is issued by a government entity or a specific company to supply certain stationery, electrical items, or any of the needs of the requesting party. I submit an offer for the value of these orders, knowing that I do not possess all of these items, or even less than all of them. I go around to the merchants to get prices for these items, as they are the suppliers of these things, and I add a certain percentage to the prices I obtain. If I am asked to bring the goods, I go to the market, buy them, and then take them to the requesting party. Is this permissible in the Shari'ah, or is it a case of selling what one does not own? Please inform us, may Allah reward you.
A: What you mentioned in the two questions falls under the category of salam; which is advancing the price and deferring the item. If the goods are specified by description, their full value is paid in the session, and the time for delivery is known, the contract is valid. However, if
the entire price is not paid in the session of the contract, it is not valid; because it is selling a debt for a debt. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I submit the following question to your Eminence, hoping for Allah’s help and then yours
in granting an answer, and I thank you in advance: 1 - I wish to represent a company by acting as its agent in the Kingdom and displaying samples of its products. If a buyer wishes to purchase from this company, I send a message to the company to obtain the prices and the timeframe in which the order can arrive. I take from the buyer 30% of the order’s value, and the remainder when the order arrives from the company. Is this transaction permissible? 2 - Sometimes a tender is issued by a government entity or a specific company to supply certain stationery, electrical items, or any of the needs of the requesting party. I submit an offer for the value of these orders, knowing that I do not possess all of these items, or even less than all of them. I go around to the merchants to get prices for these items, as they are the suppliers of these things, and I add a certain percentage to the prices I obtain. If I am asked to bring the goods, I go to the market, buy them, and then take them to the requesting party. Is this permissible in the Shari'ah, or is it a case of selling what one does not own? Please inform us, may Allah reward you.
A: What you mentioned in the two questions falls under the category of salam; which is advancing the price and deferring the item. If the goods are specified by description, their full value is paid in the session, and the time for delivery is known, the contract is valid. However, if
the entire price is not paid in the session of the contract, it is not valid; because it is selling a debt for a debt. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.