Knowing the amount of the item in a forward sale at the time of the contract
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The second question of fatwa number ( 18699 )
Q2: Some merchants give loans to fruit owners before the fruit ripens, for a period of up to four months or more, on the condition that this loan is repaid through the fruit, without agreeing on a specific price for it, but rather the prices are determined on the days of ripening. What is the validity of this contract? It is known that a specific quantity of fruit is not determined, but rather a specific period is determined in which the fruit harvest produced by the orchard during this period is delivered.
A2: This contract is not valid; because it is a forward sale contract whose conditions are not complete, such as knowing the amount of the item in the forward sale at the time of the contract, and other conditions.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q2: Some merchants give loans to fruit owners before the fruit ripens, for a period of up to four months or more, on the condition that this loan is repaid through the fruit, without agreeing on a specific price for it, but rather the prices are determined on the days of ripening. What is the validity of this contract? It is known that a specific quantity of fruit is not determined, but rather a specific period is determined in which the fruit harvest produced by the orchard during this period is delivered.
A2: This contract is not valid; because it is a forward sale contract whose conditions are not complete, such as knowing the amount of the item in the forward sale at the time of the contract, and other conditions.
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.