Credit transactions

A permissible and impermissible form of transacting

3 days ago By user2

Q: Please advise which of the following is permissible: 

1. A person buys an asset and then sells it to a customer for a profit on terms. For example, he buys a truck for R2,000,000 and sells it for R4,000,000 fixed price over 5 years. Buyer is aware of this and is willing to pay the R4,000,000. Would this be permissible? 

2. A person buys an asset and sells it to customer for the capital + profit earned on the asset during the agreed capital re-payment period. For example, he buys a truck for R2,000,000. Sells the truck for agreed R2,000,000 over 5 years + pays him the profit he makes while using that truck in his business over those 5 years. The profit varies based on the business he does each month and there is possibility of loss also. At the end of the 5 years the truck belongs to the buyer, and he stops sharing profit. The seller of the asset is made well aware of the risks. Would this be permissible?

Purchasing airtime advance

2 years ago By user2

Q: Is it permissible to take out airtime advance with networks such as Vodacom and MTN?

Your account gets credited with airtime and you don't pay right away, but you are charged an extra service fee to get the airtime as you do not have to pay for it right away?

Carrying out a credit transaction without the presence of witnesses

3 years ago By user2

Q: I am in business of steel and rubber trade in which I used to give material on credit without any witnesses. Recently I heard a speech of a scholar that Allah will not hear your prayers if you had given credit without any witness.

Is there any remedy to my situation and also does the material on credit and money givien on credit come under the same ruling?

Purchaser demanding more money when cancelling the sale

4 years ago By user5

Q: We had a sale agreement for our property five years ago with a person for 8 million rupees. He paid 2 million rupees in advance, and he promised that he will settle the balance of 6 million rupees after 6 months and complete the registration. However, he was unable to arrange the remaining amount of 6 million rupees. Now we are planning to sell the property to some other person. Therefore, I need to return the 2 million rupees to the person, but since it's been 5 years, he is now demanding more money instead of 2 million rupees. Do we need to pay the extra money?

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