All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

 

Sale transaction in which the price is delayed-including sale by instalments-is amongst the lawful sales about which the scholars of different schools of thought have agreed. They based this view on the general meaning of the verse in which Allah The Almighty Says {What means}: "Those who devour usury will not stand except as stand one whom the Evil one by his touch Hath driven to madness. That is because they say: "Trade is like usury," but God hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for God (to judge); but those who repeat (The offence) are companions of the Fire: They will abide therein (for ever)." {Al-Baqarah, 275} besides, He, The Exalted Said (What means): "O ye who believe! Eat not up your property among yourselves in vanities: But let there be amongst you Traffic and trade by mutual good-will: Nor kill (or destroy) yourselves: for verily God hath been to you Most Merciful!" {An-Nisa`, 29}. They have also based their view on evidence from the Prophetic Sunna, Qiyas (Analogical reasoning), and what is reasonable. Some people are under the impression that sale on credit/forward sale is Riba (usury). However, this is wrong because the prohibited increase is the one claimed after the buyer becomes liable for the price of the commodity while at the start of the sale contract and before the price of the commodity becomes a debt on the buyer, the increase isn`t usurious at all. In this regard, many resolutions were issued by the different Fiqh Assemblies indicating that this form of sale is lawful. Here, it is key to point out some crucial issues as far as this form of sale is concerned: The price of the commodity is either paid on the spot (Cash) or by installments. However, if the seller and the buyer depart without agreeing on a specific price, then this sale contract is annulled because it involves risk and uncertainty. And Allah The Almighty Knows Best..