Sale on credit and fixing the profit
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Fatwa number ( 1249 ):
Q: He is involved in buying and selling, and he sells goods on credit with a profit that may reach one-third or one-quarter. He may also sell a good to one person for a lower or higher price than he sells it to another. He asks whether this is permissible?
A: Allah the Exalted said:[Al-Baqarah 2:275], and He the Exalted said: [Al-Baqarah 2:282] the verse. Accordingly: If the questioner sells what he sells after he has taken full possession of it and held it, there is no blame on him in selling it
for whatever price is agreed upon by mutual consent, whether the profit is one-quarter or one-third. Likewise, there is no blame on him in the difference in the price at which he sells his goods, provided that he does not lie to the buyer by telling him that he sold it to him for the same price as he sold it to so-and-so, when in fact the price he charged him differs from that. It must also not involve excessive uncertainty (gharar), nor contradict the market price. However, he should adopt generosity and contentment, and he should love for his Muslim brother what he loves for himself, for in that there is good and blessing. He should not go to extremes in greed and avarice, for that usually stems from the hardness of hearts, the baseness of temperaments, and the harshness of character.
Q: He is involved in buying and selling, and he sells goods on credit with a profit that may reach one-third or one-quarter. He may also sell a good to one person for a lower or higher price than he sells it to another. He asks whether this is permissible?
A: Allah the Exalted said:
But Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَاO you who have believed, when you contract a debt for a specified term, write it down.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُfor whatever price is agreed upon by mutual consent, whether the profit is one-quarter or one-third. Likewise, there is no blame on him in the difference in the price at which he sells his goods, provided that he does not lie to the buyer by telling him that he sold it to him for the same price as he sold it to so-and-so, when in fact the price he charged him differs from that. It must also not involve excessive uncertainty (gharar), nor contradict the market price. However, he should adopt generosity and contentment, and he should love for his Muslim brother what he loves for himself, for in that there is good and blessing. He should not go to extremes in greed and avarice, for that usually stems from the hardness of hearts, the baseness of temperaments, and the harshness of character.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.