Darul Iftaa Mahmudiyyah

Is this contract Shariah compliant?

· 1 Rabiʻ II 1440 AH1 min readFatwa 29955English

Question

Assalamu Alaikum

I work for a feed company as a manager. the company recently wanted to Open another shop in a neighbouring town. however they offered me the ffg proposal:

I should open the business in my personal capacity and should buy the goods from them at 6% reduction in price. I will then mark up not more than 8%. however they will pay the rent for the shop.I will bear all other expenses. also 1 can only stock their feed (like an agent) but 1 can stock other products that they do not manufacture.

Is this contract fine to go into? jazakallah

Answer

In the Name of Allah, the Most Gracious, The Most Merciful.

As-salaamu `alaykum wa-ramatullahi wa-barakatuh.

It is advisable for you to pay your own rent. The company may facilitate the rental by selling you the feed at an even cheaper rate, for example 5% reduction instead of 6%. The mutual agreement falls in a category of a promise. You will be morally bound to abide by the promise.[1]

And Allah Ta`ala Knows Best.

Hussein Muhammad.

Student Darul Iftaa

Arusha, Tanzania

Checked and Approved by:

Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

[1]{وَأَوْفُوا بِالْعَهْدِ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا} [الإسراء: 34]

Answered by
Hussein Muhammad
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/29955
Fatawa SA: https://fatawa.co.za/fatwa/askimam-29955

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