Thread by @Realoilsheikh

PRE-ORDER BUSINESS, THE HARAM & HOW TO RIGHT THE WRONG..

I received this short clip from a sister two days ago with regards the Fatwah given by late Sheikh Jaafar (RH) on PRE-ORDER business. I as weed her based on what I once read from a Hadith & what I heard from a Sheikh.

https://twitter.com/YaxsyMand/status/1187036731259936769

2/ I remember it was Sheikh Dr. Bashir Aliyu Umar (RH) who gave a similar Fatwah but unfortunately I can't remember the year nor in the lesson, whether it was Tafseer or his Umdatul Ahkam lessons. However, this is what the scholars say with regards to such type of business.

3/ Sheikh Salih Al-Munajjid (RH) was asked with regards to such type of business. The mode of the transaction is: You see an item online, you advertise it via your social media & take pre-orders. You then collect the money from the interested buyers, make your profit & then

4/ use the money they sent to you to make the purchase from the original buyer & send to the interested buyers that have already sent their monies. This is typical how the PRE-ORDER business is bring conducted, with little changes but the same main modality.

He responded as ffs:

5/ Such type of business transaction is haram & contrary to Islamic teaching because you are selling something that you do not own, & you are selling something that is not in your possession & it is not within your power to guarantee it and hand it over to the purchaser.

6/ Such transaction is ambiguous & it is in effect, a gambling. Involving in such transactions may lead to disputes & conflict. There are many possibilities that sudden rise in price may occur & you happen to buy the item more than the price you sold it for before you purchase.

7/ Other possibilities is, the item may be out of stock when you finally make the payment after receiving the PRE-ORDER pay, or you might even be dealing with a fake online seller in the first place. These & many other reasons make this type of transaction unacceptable in Islam.

8/ It was narrated that Ibn Hizaam (RA) said:

O Messenger of Allah, people come to me wanting to buy something that I do not possess; should I buy it for them from the marketplace?

The Prophet (SAW) said:

“Do not sell that which you do not possess.”

9/ This Hadith was narrated by at-Tirmidhi (1232), Abu Dawood (3503), an-Nasaa’i (4613) and Ibn Maajah (2187); & classed as saheeh by Sheikh Nssiruddeen al-Albaani (RH) in Saheeh at-Tirmidhi.

In another Hadith, narrated by at-Tirmidhi (1234), who said: It is hasan saheeh,

10/ ‘Abdullah ibn ‘Amr said: The Prophet (SAW) said:

“It is not permissible to arrange a loan combined with a sale, or to stipulate two conditions in one transaction, or to make a profit on something that is not under your control, or to sell something that you do not possess."

11/ Ibn al-Qayyim (RH) said in Zaad al-ma'ad, Fiy Hadyi khayral ibaad:

"The wording of the two hadiths indicates that the Prophet (SAW) forbade selling that which is not in one’s possession because such a transactions is ambiguous and involves deceit.

12/ If he sells him a specific item that is not in his possession, then he goes to buy it or hand it over to him, that may or may not happen, in which case there is ambiguity akin to gambling, therefore it is forbidden."

~Zaad al-Ma‘aad fi Hadiy Khayr al-‘Ibaad (5/808).

13/ It was narrated that Ibn ‘Umar (RA) said:

I bought some olive oil in the marketplace & when it came into my possession I was met by a man who offered me a good profit for it, so I wanted to make a deal with him, but a man behind me took hold of my arm. I turned around & saw

14/ I turned around and saw that it was Zayd ibn Thaabit. He said: Do not sell it where you bought it until you take it to your place, for the Prophet (SAW) forbade selling goods where they were bought, before the merchants moved them to their places.

15/ Narrated by Abu Dawood (3499); and classed as hasan by Imam-Albaani in Saheeh Abi Dawood.

Assuming you even used your own money to buy it, but sold it to another person while it was still in the store of the main seller, this is still Haram, according to the shariah.

16/ in his Majmoo‘ Fataawa (19/52-53), Shaykh Ibn Baaz (RH) said, after quoting these Hadiths:

From these & similar hadiths it is evidently clear to that it is not permissible for a Muslim to sell an item that is not in his possession, then to go & buy it. Rather what he must do

17/ is delay the sale until he has bought it & it has been transferred into his possession. It also becomes clear that what many people do, of selling an item when it is still in the seller’s location, before it is transferred to the purchaser’s possession or to the marketplace

18/ is something that is not permitted, because it is contrary to the Sunnah of the Prophet Messenger (SAW), & because it is a kind of tampering with transactions & violating the guidelines laid down by Islamic teaching. And that leads to mischief, evil & negative consequences."

19/ HOW TO RIGHT YOUR TRANSACTION?

Islam never prohibits something that is unlawful except it provides a solution that is lawful.

(a) You can adopt the concept of 'Promise to buy'. What you do is, describe the item to the interested buyer, tell him that you will purchase it

20/ and when you do, you will sell at a particular price. The interested buyer would promise to buy but without any commitment from the buyer to pay, or from you to sell until you purchase it & it is in your possession. This is free of ambiguity & falls under shariah of Islam.

21/ (b) secondly, the shariah permits that you sell the item to the purchaser in return for commission or a percentage of the purchase price. You advertise the item, tell the person the original cost & demand for 2% commission or any percent you both agreed on.

The commission

22/ will be a compensation for you, or a charge you collect for the efforts you make in buying the item. This is also very clear & fee eif any ambiguity or cheating. The shariah also permits you to act as an agent to the sellers or buyers, with agreed percentage benefit.

23/ The main focus of the Islamic shariah on transaction is built on the concept of "Laa Dharar, wa laa Dhiraar" (Meaning: Do not cheat, & do not be cheated). No ambiguity, no deceit, no pretense. Everyrhing should be clear to both parties. They should agree to continue or not.

24/ So, the issue is, Islam prohibits you to sell what is not in your possession, nor should you sell something you bought while it is still in the market (shop) where you bought it, until you are in possession of it, or you have moved it to your own warehouse or shop.

25/ The concept of "Promise to buy" and the concept of "Salam" are two alternative transactions the shariah has given us, so that we can make our online businesses free of haram. The shariah wants us to avoid conflicts between us or eating from thr wealth of another unjustly.

26/ The concept of "Salam Transaction" is well explained in the shariah, by the scholars.

Sheikh Salih Al-Munajjid (RH) was asked by an importer who imports expensive perfumes, & whose capital strength is weak to bear the cost of importation without taking advance payment.

27/ So he asks for full payment before delivering the perfumes, bcos he uses the money to cover the costs of buying & importing the products. He also mentioned that and there will be no lost to customers if he fails to deliver the perfumes, because he will refund them fully.

*I answered her

28/ The scholars said, this type of transaction is permissible,based in the Hadith narrated by Ibn ‘Abbaas (RA), who said:

When the Prophet (SAaw) came to Madinah, they used to pay two or three years in advance for dates.

He said: “Whoever pays for anything in advance, let him

29/ pay in advance for a specified measure & a specified weight, to be delivered at a specified time.”

Narrated by al-Bukhaari (2240) and Muslim (1604).

This Salam transactions however are subject to conditions that must be followed before the transaction to be permissible.

30/ The conditions are:

{a} The price must be paid in advance in full, & no part of it should be delayed, bcos if the price or part of it is delayed, then the transaction will be akin to selling debt for debt, which the scholars have stated is prohibited.

31/ {b} You must describe the product; its name, type, colour, country of manufacture, size of packaging, amount in each pack & every important features that affect the price, so that there will be no dispute btw the seller and the buyer later on, when the product is delivered.

32/ {c} The date and time of delivery should be stipulated so that both parties will be committed to it & there will be no room for dispute between them.

If the deal fulfilled these conditions, then it is binding on both parties & it is not permissible for either of them

33/ to cancel it except with the consent of the other; it is binding upon you to deliver the product in question to the purchaser and if it is destroyed en route then you are liable and should deliver something like it at the time agreed.

And Allah knows best.