Agreement with a factory to manufacture a kitchen and, at the same time, sell it to a customer
Machine translationRead the Arabic original
Q: We are a group of brothers who decided to establish a company to sell
and install electrical appliances and aluminum kitchens on credit. Since we do not own a private factory for customizing aluminum kitchens, we decided to agree with one of the aluminum kitchen customization shops to pay them a specific amount, for example (30,000) thousand riyals, as an advance payment for customizing kitchens. When a customer comes and wishes to customize a kitchen, we send him with our representative to him to choose the specifications he desires, so the price of the kitchen is determined (7,000) as an example, which is deducted from the amount paid in advance. Then we sell the kitchen to the customer on credit in ten (10,000) installments, knowing that the customer's role is only to choose the specifications. Is this action permissible? Please issue a ruling, may you be rewarded, and we ask Allah to bless your work.
A: The transaction mentioned in the question contains two contracts: the first is between the questioner and the aluminum factory, and this is a valid contract of manufacturing (istisna'). The second is a contract between the questioner and the customer buying on credit, and this contract is not valid unless it is concluded after the questioner owns the kitchen and takes possession of it.
and install electrical appliances and aluminum kitchens on credit. Since we do not own a private factory for customizing aluminum kitchens, we decided to agree with one of the aluminum kitchen customization shops to pay them a specific amount, for example (30,000) thousand riyals, as an advance payment for customizing kitchens. When a customer comes and wishes to customize a kitchen, we send him with our representative to him to choose the specifications he desires, so the price of the kitchen is determined (7,000) as an example, which is deducted from the amount paid in advance. Then we sell the kitchen to the customer on credit in ten (10,000) installments, knowing that the customer's role is only to choose the specifications. Is this action permissible? Please issue a ruling, may you be rewarded, and we ask Allah to bless your work.
A: The transaction mentioned in the question contains two contracts: the first is between the questioner and the aluminum factory, and this is a valid contract of manufacturing (istisna'). The second is a contract between the questioner and the customer buying on credit, and this contract is not valid unless it is concluded after the questioner owns the kitchen and takes possession of it.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.