Murabahah and installment sale : installment sale

Fatawa Question

Dear Br. Monzer, Assalamu Alaykum Wa Rahmatu Allahi Wa Barakatuh. I hope things are going well for you, and I’m looking forward to seeing you again, Insha’Allah. I have a question for you regarding installment sales. According to Shari’ah, If the buyer defaults, how much exactly does he owe the seller, and when ? So for example, let’s say I buy an item that would normally cost $ 50,000 if paid all in cash, but I agree with the seller to instead pay him $ 500 per month for 200 months (totaling $ 100,000). Then after making half the payments over the course of 100 months, I default and quit paying, and the seller takes back the item, and resells it for $ 40,000 cash. Exactly how much, if anything, do I owe the seller, and exactly when am I obliged to pay it ? Or does he owe money to me instead ? Best Regards, Jeff

Fatwa

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Publication Date

2009-04-17

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Sales
• Contracts
• Prices
• Resale on profit
• Discount
• Installment sales

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-734516

• APA
• MLA
• AMA