Paying money in advance and buying goods gradually

Question

Question: A person gave another person 500 rupees on condition that he would keep giving him milk at the rate of one rupee per kilo until the sum is paid off. Is this transaction permissible in the Sharia or impermissible, and does this form fall under bayʿ salam (forward sale with advance payment)?

Answer

The conditions of bayʿ salam are not present in it. The jurists have written that this form is makruh. The sum given in advance is a loan (qard); gradually milk is sold in exchange for its portions.

Source: Fatawa Mahmudiyya

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