Is this contract Shariah compliant?
Question
Assalamu Alaikum
I work for a feed company as a manager. the company recently wanted to Open another shop in a neighbouring town. however they offered me the ffg proposal:
I should open the business in my personal capacity and should buy the goods from them at 6% reduction in price. I will then mark up not more than 8%. however they will pay the rent for the shop.I will bear all other expenses. also 1 can only stock their feed (like an agent) but 1 can stock other products that they do not manufacture.
Is this contract fine to go into? jazakallah
Answer
In the Name of Allah, the Most Gracious, The Most Merciful.
As-salaamu `alaykum wa-ramatullahi wa-barakatuh.
It is advisable for you to pay your own rent. The company may facilitate the rental by selling you the feed at an even cheaper rate, for example 5% reduction instead of 6%. The mutual agreement falls in a category of a promise. You will be morally bound to abide by the promise.[1]
And Allah Ta`ala Knows Best.
Hussein Muhammad.
Student Darul Iftaa
Arusha, Tanzania
Checked and Approved by:
Mufti Ebrahim Desai.
References (Arabic / Urdu sources)
[1]{وَأَوْفُوا بِالْعَهْدِ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا} [الإسراء: 34]
- Answered by
- Hussein Muhammad
- Checked & approved by
- Mufti Ebrahim Desai
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