The Ruling on Tawarruq Sales and Their Description

Question:
May Allah reward you and bless you. This questioner, Abdullah Ali, sent a set of questions, starting with this question about tawarruq sales. He asks: Is it permissible in Islam? And what is its description?

Answer:
The issue of tawarruq is a matter of scholarly disagreement among the scholars, and the majority hold that it is permissible for a pressing need. If a person needs money and cannot find someone to lend it to him, he goes to those who have goods for trade, buys a commodity from them for a deferred price, then sells it in the market and benefits from its price. Then, when the due date arrives, he pays the seller. If he is in need and cannot find someone to lend him money, it is permissible for the sake of the need, provided these conditions are met: First, the commodity must be the property of the seller before the contract. Second, he must not sell it back to the one who sold it to him on the basis of the debt he owes him, but rather sell it to someone else. Third, it must be for a need that cannot be met except by this means. Yes.