Mufti Online — Madrasah Ta'leemuddeen

Clause stating that if the buyer defaults on an installment, the entire outstanding balance becomes immediately due

· 28 Shawwal 1447 AH1 min readEnglish

Question

If a person purchases an item on a payment plan, agreeing to pay the price in fixed monthly installments over a set period, and the contract includes a clause stating that if the buyer defaults on any single installment, then the entire outstanding balance becomes immediately due and payable. Is such a condition valid and permissible?

Answer

If both parties agree to this, it will be permissible.

And Allah Ta'ala (الله تعالى) knows best.

References (Arabic / Urdu sources)

وكذلك لو جعل المال نجوما بكفيل، أو بغير كفيل، وشرط أنه إن لم يوفه كل نجم عند محله، فالمال حال عليه فهو جائز على ما شرط؛ لأنه جعل الإخلال بنجم شرطا لحلول كل المال عليه، وأنه صحيح (بدائع الصنائع 6/45)

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
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Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/36627
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-36627

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