Clause stating that if the buyer defaults on an installment, the entire outstanding balance becomes immediately due
Question
If a person purchases an item on a payment plan, agreeing to pay the price in fixed monthly installments over a set period, and the contract includes a clause stating that if the buyer defaults on any single installment, then the entire outstanding balance becomes immediately due and payable. Is such a condition valid and permissible?
Answer
If both parties agree to this, it will be permissible.
And Allah Ta'ala (الله تعالى) knows best.
References (Arabic / Urdu sources)
وكذلك لو جعل المال نجوما بكفيل، أو بغير كفيل، وشرط أنه إن لم يوفه كل نجم عند محله، فالمال حال عليه فهو جائز على ما شرط؛ لأنه جعل الإخلال بنجم شرطا لحلول كل المال عليه، وأنه صحيح (بدائع الصنائع 6/45)
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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