Agreement with a company to supply goods to it
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The second question of Fatwa No. ( 20582 )
Q2: We agree with certain institutions and companies to supply them with some goods after a specific period, such as two months or more. These goods are described by attributes that define them, and they are not owned by us at the time of the contract. After signing the contract, we import these goods from the sources where they are available. What is the ruling in these cases: 1 - If we do not receive any amount at the time of the contract. 2 - If we receive part of the value, knowing that the custom is not to pay the full amount at the time of the contract. 3 - If we receive the full value at the time of the contract. And what is the ruling in all these cases if the contract is made as a contract of istisna' (manufacturing)?
A1: Selling described goods in the debt for a known term, with attributes that define them, is a permissible salam contract in the Shari'ah, but with the condition of receiving the full price in the contract session; because if the full price is not received, it becomes a sale of debt for debt, which is unanimously forbidden.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad and his family and his Companions.
Q2: We agree with certain institutions and companies to supply them with some goods after a specific period, such as two months or more. These goods are described by attributes that define them, and they are not owned by us at the time of the contract. After signing the contract, we import these goods from the sources where they are available. What is the ruling in these cases: 1 - If we do not receive any amount at the time of the contract. 2 - If we receive part of the value, knowing that the custom is not to pay the full amount at the time of the contract. 3 - If we receive the full value at the time of the contract. And what is the ruling in all these cases if the contract is made as a contract of istisna' (manufacturing)?
A1: Selling described goods in the debt for a known term, with attributes that define them, is a permissible salam contract in the Shari'ah, but with the condition of receiving the full price in the contract session; because if the full price is not received, it becomes a sale of debt for debt, which is unanimously forbidden.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad and his family and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.