Umdatus Salik #10 – Some Prohibited Kinds of Transactions Part II: Either-or Sales, Sales with Extraneous Stipulations, Sales with Valid Stipulations, Paying Nonrefundable Deposits 

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#10 Some Prohibited Kinds of Transactions Part II: Either-or Sales, Sales with Extraneous Stipulations, Sales with Valid Stipulations, Paying Nonrefundable Deposits 

Introduction

The Islamic law outlines clear rules for sales transactions, distinguishing between valid and invalid conditions. Unfair conditions, like keeping nonrefundable deposits or linking sales to unrelated agreements, can make a deal invalid. Meanwhile, fair terms, such as payment installments or returns for defects, are permissible. This ensures ethical and transparent trade.

Ustaz Anwar Notes English Translation  Arabic Text 
The seller insists that he will sell his clothes to the buyer on the condition that the buyer sells his slave to him.  or such as saying, “I sell you my robe for a thousand, provided you sell me your sword for five hundred” (0: which is invalid because of the invalid stipulation.  أوْ بعتُكَ ثوبي بألفٍ على أنْ تبيعني عبدكَ بخمسمئةٍ،
The transaction is invalid because the seller placed a conditional upon the buyer. The agreement is nullified.    It is not valid to make a transaction that includes an invalid stipulation.

(A: such as a condition that is extraneous to the original agreement which adds to its price)

(0: because the Prophet (Allah bless him and give him peace) forbade transactions with such conditions, like stipulating a loan or a second transaction),

saying for example, “I hereby sell it to you (n: for a thousand) provided you loan me a hundred”

(0: or “provided you sell me your house for such and such a price” (A: or “Provided you do not sell it to so and-so”). It invalidity is due to considering both as the price. Stipulating this invalidates the transaction, and paying this “price” is void, it not being determinately known).

The following types of conditions do not invalidate transactions that stipulate them:

ولا بيعٌ وشرطٌ، مثل: بعتُكَ بشرط أنْ تقرضني مئة، ويصحُّ بيعٌ وشرطٌ في صورٍ وهي: 
Example: I want to sell a book, but the buyer is short of money. So seller told him that he can buy the item and pay through instalment. However, the duration has to be specified, and the buyer has to pay through specific instalment amounts.  -1- a condition to postpone payment, though this requires that the date of payment be specified; ١ – شرطُ الأجلِ في الثمنِ بشرطِ أن يكونَ الأجلُ معلوماً.
The buyer can pay for the item through instalment, but in case they are unable to pay the full amount within the stipulated time, the seller can set a condition that the buyer has to pledge a collateral to pay the debt.  -2- a condition that collateral (def: kll) be put up as security (N: for payment of the price or for delivery of the merchandise); 

a condition that a particular individual will guarantee (def: kl5) payment;

٢ – وأنْ يرهنَ بهِ رهناً، أوْ يضمنَهُ بهِ زيدٌ.
Example: the person owns a slave, and wanted to sell him for a high price. The actual price he set was $100,000, but a buyer said he would like to purchase the slave in order to free him. Hence the seller lowered the price to $50,000. However, the buyer did not release the slave. Is this sale transaction valid? Yes, the agreement itself is acceptable, but the buyer is accountable for lying.  -3- or to free the slave that has been bought [Self-translated] ٣ – أوْ أنْ يعتِقَ العبدَ المبيعَ.
Placing a condition on the deal, and one of it is being able to return the item in case of any defect.  -4- or other conditions (0: from the seller, the buyer, or both) that the deal requires, such as an option to return the merchandise if defective, and so forth. ٤ – أوْ شرَطَ ما يقتضيهِ العقدُ، كالردِّ بالعيبِ ونحوهِ.
It is valid for the seller to stipulate that he is free of responsibility for defects in the merchandise. By doing so, he is not held responsible for an animal’s internal defects which he does not know of, though he remains responsible for all other kinds of defects.

(The conditions for this ruling are that the defect be internal, be found in an animal, be unknown to the seller, and that it exist at the time of the agreement.)

فإنْ باعَ وشرطَ البراءةَ منَ العيوبِ صحَّ، وبَرئ منْ كلِّ عيبٍ باطنٍ في الحيوانِ لمْ يعلمْ بهِ البائعُ، ولا يبرَأُ مما سواهُ.
Buyer wants to purchase an item, and he buys some of it first. If he wants to keep it, the price paid becomes part of the whole cost of the item. 

However, if the buyer decides to return the item, the price paid is considered burn, because seller gets to keep it. This form of transaction is still common up to this day. 

It is not valid to pay a non-refundable deposit towards the price of an article, such as paying a dirham for piece of merchandise on the basis that if the buyer decides to keep it, the dirham is part of the price, but if he does not, then the seller keeps the dirham for free. ولا يصحُّ بيعُ العُرْبونِ، بأنْ يشتري سلعةً ويدفعَ درهماً على أنهُ إنْ رضيَ بالسِّلعةِ فالدِّرهمُ منَ الثمنِ، وإلا فهوَ للبائعِ مجاناً.
The sale transaction is considered null if a female slave and her child before the age of discernment (tamyiz), which is the age where children are able to care for themselves like eating, dressing, cleaning up after themselves, are separated.  [Self-translated]: 

If he (master) separates the female slave from her child before the age of discernment by selling or gifting, the contract is invalid. If the child is beyond the age of discernment, the agreement is valid.

ولوْ فرَّقَ بينَ الجاريةِ وولدها قبلَ سنِّ التمييزِ ببيعٍ أوْ هبةٍ بطلَ العقدُ، وبعدَ التمييزِ يصحُّ،

Conclusion

In conclusion, Islamic rules for sales protect fairness and honesty in trade. Buyers and sellers can ensure their transactions are valid and ethical by avoiding unfair conditions and following allowed practices.

 

Written by Maryam Binte Aziz for notes on “Umdatus Salik #10 Some Prohibited Kinds of Transactions Part II: Either-or Sales, Sales with Extraneous Stipulations, Sales with Valid Stipulations, Paying Nonrefundable Deposits”.

Edited by Nafisah Yusra Binti Abdul Rahim.

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