Conducting A Transaction Before Possessing The Item

Conducting a transaction before possessing the item is a Faasid (corrupt/invalid) transaction in Shariah. Therefore, it is incumbent upon the seller and buyer to nullify this transaction. Moreover, it is a sin and one should repent from it together with nullifying the transaction. However, it can only be rectified if the vendor and purchaser both cancel and abandon this transaction and redo it when the seller repossesses the item.

The profits accrued from such a transaction before will only become permissible to use if the buyer takes the item in his possession with the proviso that there is no dispute and clash between both parties regarding the transaction and they do not nullify this transaction. In the enquired scenario, where he has been engaged in these types of corrupt transactions and there is no dispute between both parties and they did not nullify the transactions, he is permitted to use the profits.

Lastly, we conclude by insistently advising you to refrain from conducting a transaction before possessing the item in future since it is against the principles laid down by Shariah.

However, one can avoid this by adopting two other options which will not corrupt the transaction:

1. The seller can make someone or some company his deputy or representative to take possession of the goods from the supplier and when his representative takes the items in his possession, it will regarded as if the seller himself has taken possession because the Wakeel/representative’s possession is considered as good as the Muwakkil’s (the one who appoints the representative) possession. In this instance, the vendor can sell the items after his representative has taken possession.

2. He can promise the buyers to sell the items when he receives them instead of selling them before possession which is not allowed in Shariah. In this scenario, after the goods have arrived, if any of the dealing parties refuse to fulfil their promise and conduct this transaction, they will not be forced to conduct the transaction. However, they will be sinful for not fulfilling their promise.