Fatwa No : 82584

What do the respected scholars and Muftis say regarding the following issue, which is common nowadays that a person, for example, purchases a car for one hundred thousand in cash, and then sells it to another person on credit for one hundred and fifty thousand. Is this permissible, or does it fall under interest-based transactions, or is it merely a trick to make interest appear lawful?
The second point is that in such dealings, after the sale is finalized, the buyer pays some amount in cash, for example fifty thousand, and then takes possession of the car and begins using it. During this period, if the car is stolen, or destroyed in an accident, or burnt, then the fifty thousand paid by the buyer is lost, and the one hundred thousand still owed in installments to the seller is also cancelled. Is such a transaction valid according to Shariah?

الجوابُ حامِدا ًو مُصلیِّا ً

In the first case, the mentioned transaction is undoubtedly permissible and valid, provided that the agreement on credit is finalized in the very first sitting of the contract, the total number of installments and the exact amount of each installment are specified, and no additional penalty is imposed in case of delay in payment. Therefore, if the transaction is carried out in this manner, it must not be declared unlawful.
Likewise, in the second case, making the seller share in the loss in the event of the car being stolen or missing is not permissible; rather, according to Shariah, the buyer is liable to pay the full price. However, if the seller voluntarily forgives it, then there is no prohibition in that.

مأخَذُ الفَتوی

کمافي المبسوط للسرخسي: وإذا عقد العقد على أنه إلى أجل كذا بكذا وبالنقد بكذا أو قال إلى شهر بكذا أو إلى شهرين بكذا فهو فاسد؛ لأنه لم يعاطه على ثمن معلوم ولنهي النبي - صلى الله عليه وسلم - عن شرطين في بيع وهذا هو تفسير الشرطين في بيع ومطلق النهي يوجب الفساد في العقود الشرعية وهذا إذا افترقا على هذا فإن كان يتراضيان بينهما ولم يتفرقا حتى قاطعه على ثمن معلوم، وأتما العقد عليه فهو جائز؛ لأنهما ما افترقا إلا بعد تمام شرط صحة العقد اھ (13/ 8) ۔