Author: Dr. Muhammad Zia-ur-Rahman Azmi (رحمہ اللہ)
According to the majority of scholars, selling goods on credit at a higher price than their cash price is permissible. The evidences that establish the permissibility of sale transactions include this practice as well.
Moreover, this ruling is supported by the divine command in the Qur'an:
"O you who have believed, when you contract a debt for a specified term, write it down."
[Surah Al-Baqarah: 282]
This verse encompasses both cases:
① When the credit price is equal to the cash price.
② When the credit price is higher than the cash price.
"Until the Zakat camels arrive, I purchased one camel in exchange for two."
[Sunan Abi Dawood, Hadith No. 2823]
Hafiz Ibn Hajar (رحمه الله) mentioned this narration in Bulugh al-Maram, considering it a direct proof for this issue. Additionally, Allama Shawkani compiled a treatise on its permissibility, referenced in Nayl al-Awtar.
✔ Both parties should agree on the price.
✔ The sale should not be considered finalized until the goods come into the seller's possession.
This ruling is based on a narration from Zaid bin Thabit (رضي الله عنه), where the Prophet (ﷺ) forbade selling goods before they are in the possession of the seller. He specifically prohibited merchants from selling items at the place of purchase before moving them to their own storage.
"Do not sell what you do not possess."
He explained:
"The prohibition of selling what is not in one's possession is because such an item cannot be guaranteed, nor does it establish liability upon the seller, nor is it physically in his control. Therefore, it is essential that the sold item either becomes the liability of the seller or is within his possession. If neither condition is met, the hadith remains general in its ruling."
For further details, one may also refer to "Zad al-Ma'ad" and "I'lam al-Muwaqqi'in."
Reference: Ibn Baz, Majmu' al-Fatawa wa al-Maqalat (Volume 19, Page 106)
The Ruling on the Statement: "Sell me for twelve in exchange for ten"
When a creditor says to the debtor, "Sell me for twelve in exchange for ten," it means: "Sell me the goods, whose current cash price is equivalent to ten, for twelve on credit." There is no issue in such a statement because meaning and intent are considered (rather than just words).According to the majority of scholars, selling goods on credit at a higher price than their cash price is permissible. The evidences that establish the permissibility of sale transactions include this practice as well.
Moreover, this ruling is supported by the divine command in the Qur'an:
"O you who have believed, when you contract a debt for a specified term, write it down."
[Surah Al-Baqarah: 282]
This verse encompasses both cases:
① When the credit price is equal to the cash price.
② When the credit price is higher than the cash price.
Evidence from Hadith
A narration recorded by Al-Hakim and Al-Bayhaqi from Abdullah bin Amr (رضي الله عنه) states that the Messenger of Allah (ﷺ) ordered him to prepare an army, but the camels ran out. The Prophet (ﷺ) then instructed him to procure camels from the charity stock. He said:"Until the Zakat camels arrive, I purchased one camel in exchange for two."
[Sunan Abi Dawood, Hadith No. 2823]
Hafiz Ibn Hajar (رحمه الله) mentioned this narration in Bulugh al-Maram, considering it a direct proof for this issue. Additionally, Allama Shawkani compiled a treatise on its permissibility, referenced in Nayl al-Awtar.
Conditions for a Valid Transaction
If the goods are not in the seller’s possession or they belong to the seller but he is unable to deliver them, then he has no right to finalize the sale with the buyer. Instead:✔ Both parties should agree on the price.
✔ The sale should not be considered finalized until the goods come into the seller's possession.
This ruling is based on a narration from Zaid bin Thabit (رضي الله عنه), where the Prophet (ﷺ) forbade selling goods before they are in the possession of the seller. He specifically prohibited merchants from selling items at the place of purchase before moving them to their own storage.
Scholarly Explanation
Imam Ibn al-Qayyim (رحمه الله), in Tahdhib al-Sunan, elaborated on the hadith:"Do not sell what you do not possess."
He explained:
"The prohibition of selling what is not in one's possession is because such an item cannot be guaranteed, nor does it establish liability upon the seller, nor is it physically in his control. Therefore, it is essential that the sold item either becomes the liability of the seller or is within his possession. If neither condition is met, the hadith remains general in its ruling."
For further details, one may also refer to "Zad al-Ma'ad" and "I'lam al-Muwaqqi'in."
Reference: Ibn Baz, Majmu' al-Fatawa wa al-Maqalat (Volume 19, Page 106)