The Cooperative Association and the Form of Agreement to Purchase a Car
Machine translationRead the Arabic original
The questioner:
What is a Sharia-compliant cooperative association, and is it permissible for five people to agree to purchase a car, then sell it, and give its proceeds to three of them because they are in need, while all the people pay off the debts?
The Shaykh:
I do not know what a Sharia-compliant association means.
The questioner:
An association for dealing with the cooperative.
The Shaykh:
A Sharia-compliant cooperative means that they donate and collect their donations, and if any one of the Muslims needs it, he is paid from this cooperative to help him. As for it being limited to them alone, that is not clear and is not permissible, because that means you pay something and take more than what you paid. If something happens to you or a disaster strikes, you take more than what you paid. But if it is open to every person in need and nothing returns to you from it except reward and merit, then there is no harm. Yes, associations have multiplied and diversified nowadays, and they have been affected by ambiguity and actions that require scrutiny. Yes.
What is a Sharia-compliant cooperative association, and is it permissible for five people to agree to purchase a car, then sell it, and give its proceeds to three of them because they are in need, while all the people pay off the debts?
The Shaykh:
I do not know what a Sharia-compliant association means.
The questioner:
An association for dealing with the cooperative.
The Shaykh:
A Sharia-compliant cooperative means that they donate and collect their donations, and if any one of the Muslims needs it, he is paid from this cooperative to help him. As for it being limited to them alone, that is not clear and is not permissible, because that means you pay something and take more than what you paid. If something happens to you or a disaster strikes, you take more than what you paid. But if it is open to every person in need and nothing returns to you from it except reward and merit, then there is no harm. Yes, associations have multiplied and diversified nowadays, and they have been affected by ambiguity and actions that require scrutiny. Yes.
Source
شرح نونية ابن القيم [35] — alfawzan.live (1:02:09)
The Arabic text is a machine transcription of the audio recording.