Can two persons agree to buy a commodity, to be jointly owned by the both of them, on the basis that, one of them will promise the other to purchase the share of his partner at a price higher than the cost price, on deferred payment basis?
The answer to this question contains two aspects. The first is the permissibility of this act from the Shari’ah point of view, while the second aspect is whether this promise is binding or not. For the first aspect, there is no ambiguity on the permissibility of this promise from the Shari’ah point of view. This is because Muslims are bound by their stipulations, except a stipulation that makes that which is haram (unlawful) to be halal (lawful) or that which is halal (lawful) to be haram (unlawful).
As for the second aspect, we have already preferred to give fatwas in line with the opinion reported from Imam Malik, that says, “If an obligation is established on the basis of a promise in such that, if not for the promise, that obligation would not have been established, then this type of promise becomes binding. Nevertheless, it is compulsory to take into account all the necessary things that would make this act understood, by defining its objectives and explaining the terms clearly, with regard to the tenure, price and the any other elements that will prevent disputes between the parties. To me, this is the answer to those questions. Allah knows best.
Issuer: Badar Al-mukhaizeem, Director General of Kuwait Finance House.