A form of auction

Question

Question: In Soti Ganj, Meerut, there is a small scrap market where motor parts are sold at auction. Now a union has been formed there, because previously people would take goods on credit and not pay the money, and the small traders were greatly troubled by this. Now a union has been set up with two hundred members, each of whom pays five rupees a month.

Answer

On (1) to (4): if, in the auction, the union pays the price at the final bid out of its own funds, this means that the union itself is the buyer; and the bidding too is called out by the union itself, so it is also the seller, i.e. it is the agent (wakil) on behalf of the seller. This method is wrong.

Source: Fatawa Mahmudiyya

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