Sale Before Taking Possession (Qabd)

Question

Zayd gave ʿUmar the price for making boxes (chests) of various kinds at the rate of twelve annas (a coin worth 1/16 of a rupee), and told him: “Make them within twenty days.” Now ʿUmar is making the boxes; the twenty days have not yet been completed. Zayd said to ʿUmar: “Sell the boxes at the rate of fourteen annas and give me the price at the rate of fourteen annas.” Now ʿUmar has resolved that he will sell them at the rate of one rupee and make a profit of two annas. Is this transaction permissible?

Answer

It is impermissible. Zayd should first take possession of his boxes; after that, if he wishes, he may hand them over to ʿUmar thus: “I have sold you these boxes for 14 annas,” and ʿUmar, having bought them, may sell them at whatever price he wishes.

Source: Fatawa Mahmudiyya

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