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  • Real-life examples of trade relations

    One important criterion to consider is that any trade transaction that violates one of the conditions or has a pre-existing obstacle becomes forbidden. According to this criterion, anything that leads to quarrel, conflict, or disagreement is an obstacle that makes a trade deal invalid. Even if the disagreement did not cause any problems for the parties, as they were able to reach an agreement without offending each other, the trade deal will still be considered invalid because anything that can lead to discord refers to a hindering circumstance that makes a trade transaction illegal.

    Why did Sharia establish these rules? When considering the specific rules, it becomes clear that they are needed to prevent and not allow some disagreements between people. So, let's move on to some modern exchange types of trade and financial relations that are associated with the application of the first rule of fictitious.

    Sale by Installments (Bey at-Taksit)

    In Sharia, "trade" (al-bay) refers to the exchange of property by taking it upon oneself as responsibility or the exchange of permitted benefits for un-permitted ones. Both of these activities are similar, occurring on a continuous basis and not related to usury or debt. The word "taxi" means installment plan. Nowadays, many types of installment sales have emerged.

    What is installment sales? Sale by installments (beyat-taksit) is a sale of goods where payment is deferred, divided into parts, and distributed over time. The price is higher than usual compared to the price that occurs when the buyer pays immediately what he must pay.

    For example, when a seller sells a car in installments, he provides the buyer with a deferred payment plan. The amount for which the car is sold is divided into parts and distributed over time. That is, every month or every two or three, the buyer pays a certain amount of money per month, as agreed with the seller.

    The definition says: "... for a price exceeding the real price, which happens when the buyer immediately pays what he must pay." For example, if the price of the car if the buyer pays cash is 50 thousand, and if you buy a car in installments for 10 months, then it will be 80 thousand.

    Is it allowed or not? It is allowed because according to one of the rules of fiqh, the basis for trade transactions is permissible. And if a person says that selling by installments is allowed, they are not required to argue further, as it sticks to the basics.
    But if a person says that the sale in installments is prohibited (haram), then they are asked to bring a valid religious argument. If the argument is strong and indisputable, it is accepted. Otherwise, it is necessary to object to the person and return what they told him himself.

    Now let's look at specific examples of trade transactions with installment sales.

    Example one

    A man buys a set of gold jewelry. The cost when buying and paying immediately is 100 thousand, but he bought it in installments for a year for 150 thousand. Is this correct because the basis in trade relations is permissible? No, because despite the fact that the basis of trade relations is permissibility, there should not be any obstacles to the existing circumstances established by Sharia. In this case, such an obstacle exists, and it is the product itself.

    When it comes to selling gold, silver, or paper money, no deferment is permitted in accordance with the condition established by Sharia: "That-the var and price must be provided to each other pro-the seller and the buyer in the meeting at which the"deal is concluded."Nowadays, some people buy or sell gold, silver, or money via the Internet. However, the condition of providing each other is not met immediately at the meeting where the transaction is concluded. The seller of the goods and the buyer of the payment for these goods: gold for money, gold for gold, and so on, are not allowed. Similar commercial transactions are not allowed because we are talking about such goods, the delivery and receipt of which, and payments for which must occur in the collection in which the transaction was concluded. That is, the deferral of payment is not allowed when trading these goods.

    Second example

    The seller sells his car in installments, that is, the payment of the cost is divided into parts. In this case, it is proposed that the buyer pays a one-year installment plan for 120 thousand, or a three-year installment plan for 150 thousand, or a four-year installment plan for 200 thousand. And the buyer confirms the conclusion of the transaction with the words:"I'm buying!"Will this transaction be allowed? This is not a valid contract, and this trade deal is not permitted because there is an impending circumstance that makes it invalid. Namely, one of the conditions for the validity of a trade transaction is that the price at the conclusion of the contract of purchase and sale must be fixed. And since trade-the deal did not end on one fixed price for the car, it cannot be recognized as valid.

    Now let's look at another version of this deal. The seller sells his car on an installment plan, and this offers the buyer to buy a car in installments: for a year with a price of 120 thousand, or for 3 years with a price of 150 thousand, or for 4 years with a price of 200 thousand. And the buyer confirms the conclusion of the transaction with the words: “I buy with a 3-year installment plan for 150 thousand!

    Is this trade deal allowed? It will be valid from the point of view of the majority of scholars of Islam, because in this case the trade do-the contract is concluded with a fixed price. And what happened before the conclusion of the trade deal by the seller was announced several installment options with different prices it was a trade, that is, the seller and the buyer traded and discussed before concluding the deal.

    It should be noted that some respected scientists of our time indicate that sales in the dis-urgent in the above option is prohibited, because, in their opinion, this will already be a unification of the twosales in one sale, which was prohibited in one of the hadiths. Which opinion of scientists is correct? First, because at the very moment the price was already fixed before the trade deal was concluded. And what happened before the conclusion of the trade deal is essentially a trade. Can any scientist to say that you can't bargain?

    For better understanding, let's give another example: a man wants to sell a thousand dollars for 23 thousand hryvnia, but in installments with receipt from the buyerevery day for a thousand hryvnia. Is such a sale in installments permitted? No, because we are talking about selling money, and money is from-are related to those goods that cannot be sold in the distribution urgently. Do not sell dollars for reals in installments, or gold for gold, or silver for silver, or gold for gold.lot to for silver, since all this is sold in installments it is forbidden.

    Third example

    A man came to another man and said:"There is one house that I want to buy, but I don't have enough money."Then the second one says to him:"Ho-Okay, I'll sell you this house for 100 thousand in installments.ku". The man who wanted to buy a house says:"Do-They said, I'm buying!"After that, the second person finds and buys the house that the first one talked about, and then passes it to him. Is it possible to do this? It is impossible because the second person sold to the first ones something that does not yet belong to him.

    If, for example, the second person, knowing that the first person cannot ku-drink immediately liked the house, first bought I would like to buy this house, and then I would offer to buy it first he had it for 100 thousand, then this trade deal was is permissible according to the majority of scholars, since it was carried out within the framework of the mentioned rule of fiqh"The basis of trade transactions is permissibility."

    To sum up, we note that the sale in installments (beyat-taksit) will be considered permissible in that case if the product is not one of those sold with the condition of exchanging goods for their value directly specifically in the meeting where the trade is concluded deal.
    Tags: shariah finance, trade relations
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