Fatwa No : 84406
Buying Something at a Higher Price Through Installments

Buying Something at a Higher Price Through Installments

I need machinery to expand my business, but I do not currently have the required capital available. However, some receivable funds are with my customers, which I receive in specific amounts over time. If I make an offer to someone that he purchases the required machinery for me and then hands it over to me at a price higher than the purchase price — i.e., with an agreed profit — would this be valid? For example: The price of this machine is 1,100,000 rupees, and we agree that he will sell it to me for 1,280,000 rupees, and this amount will be paid in 13 installments, i.e., one lakh rupees every month, to be fully paid within 13 months. The installments will begin from the time the machinery is handed over to me. My question is: Is this transaction permissible according to Shariah? Is such a plan valid? Please guide me in this matter and send me an authentic fatwa.
Note: If there is any Shariah objection in the above-mentioned transaction, please guide me on how to make it practically Shariah-compliant.

الجوابُ حامِدا ًو مُصلیِّا ً

If the person through whom the questioner wants to purchase the machinery first buys the machinery in cash at a lower price and takes it into his own possession, and then sells it to the questioner at a higher price on installments, then such a transaction is permissible in Shariah. This is subject to the condition that no additional penalty is charged in case of delay in any installment, apart from the fixed agreed price (for example, 1,280,000), and that in the contract session itself it is clearly agreed that the transaction is on credit and installments.

مأخَذُ الفَتوی

كما في الدر المختار: (وصح بثمن حال) وهو الأصل (ومؤجل إلى معلوم) لئلا يفضي إلى النزاع اھ (4/ 531)۔
وفي حاشية ابن عابدين (رد المحتار): (قوله: فوق قيمته) أي شراء بثمن مؤجل فوق ما يباع بثمن حال لأن قيمة المؤجل فوق قيمة الحال (قوله ويكون الربح) أي ما ربحه بائع المتاع بسبب التأجيل. اھ (4/ 440)۔
في 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)۔