Written by: Fatāwā of the Saudi Fatwa Committee
When a buyer places a condition that any potential loss will be borne by the seller, or when a sale is conducted with the condition that the buyer will only pay for sold items and return unsold ones, or when the seller stipulates: “Buy this merchandise from me, and if you incur a loss, I will compensate for that loss”, then such a condition is invalid, although the sale itself remains valid.
This ruling is based on the statement of the Prophet ﷺ:
«كل شرط ليس فى كتاب الله فهو باطل وإن كان مائة شرطه»
“Every condition that is not found in the Book of Allah is invalid, even if it were a hundred conditions.”
[Sunan al-Nasā’ī, Hadith no. 3451]
Furthermore, the nature of a valid sale necessitates that once the payment is made, the goods are transferred to the buyer, who then possesses complete ownership over the goods and may freely dispose of them. Thus, the buyer alone assumes the risk of profit or loss.
In addition, such a condition attempts to eliminate the natural risk of loss. For instance, if the buyer neglects proper marketing and sells the goods at a loss, that loss unjustly shifts to the seller. When the seller says: “If a loss occurs, I will cover it,” it constitutes a form of deception, as it gives the buyer the false impression that the product is in high demand, guaranteed to sell, and valued at the set price.
[Al-Lajnah al-Dāʾimah: 19637]
✦ Ruling on the Condition: “If the Buyer Incurs a Loss, the Seller Will Compensate”
When a buyer places a condition that any potential loss will be borne by the seller, or when a sale is conducted with the condition that the buyer will only pay for sold items and return unsold ones, or when the seller stipulates: “Buy this merchandise from me, and if you incur a loss, I will compensate for that loss”, then such a condition is invalid, although the sale itself remains valid.
This ruling is based on the statement of the Prophet ﷺ:
«كل شرط ليس فى كتاب الله فهو باطل وإن كان مائة شرطه»
“Every condition that is not found in the Book of Allah is invalid, even if it were a hundred conditions.”
[Sunan al-Nasā’ī, Hadith no. 3451]
Furthermore, the nature of a valid sale necessitates that once the payment is made, the goods are transferred to the buyer, who then possesses complete ownership over the goods and may freely dispose of them. Thus, the buyer alone assumes the risk of profit or loss.
In addition, such a condition attempts to eliminate the natural risk of loss. For instance, if the buyer neglects proper marketing and sells the goods at a loss, that loss unjustly shifts to the seller. When the seller says: “If a loss occurs, I will cover it,” it constitutes a form of deception, as it gives the buyer the false impression that the product is in high demand, guaranteed to sell, and valued at the set price.
[Al-Lajnah al-Dāʾimah: 19637]
