A Ruling on a Guarantee Issue

Authored by: Fatwas of the Saudi Fatwa Committee

Question:
In our village, people guarantee the olive fruit for a fixed amount, for example, someone says, "I guarantee all your olives for 1,000 dinars." Is this transaction permissible according to Islamic law? What is it called? If it is permissible, what is the evidence?

Answer:
The described guarantee is not permissible in Islam. This is because:
  1. It involves the guarantee of an unknown item, which leads to ambiguity and uncertainty.
  2. It includes an invalid condition, making the transaction void.
  3. It is akin to gambling and constitutes an impermissible way of consuming wealth.
[Reference: Al-Lajnah Ad-Daimah, Vol. 19, Page 129]
 
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