First Steps Economics - Presentation 2

7/27/2019 First Steps Economics - Presentation 2

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The Essentials of Sale

1. تاي - MUTUAL CONSENT

A sale will be invalid without mutual consent.

Example: بع اكه

The sale of a person who is forced to sell.




2. - وجد EXISTENCE OF SUBJECT OF SALE

The subject of sale must be existent at the time the saleis concluded.

Example: Selling an unborn calf or the advanceselling of crops.




3. لكة - OWNERSHIP

The subject of sale must be in the ownership of the seller at thetime of sale.

Example:Ismail Builder wishes to purchase 100 pockets of cement from Bilaal’s Hardware. Bilaal did not have cement

when Ismail contacted him. However, his brother, Yusuf’s General Dealer, who is across the road, has the cement. Bilaalsells the cement to Ismail and thereafter gets the cement from

Yusuf and delivers it to Ismail. This sale is invalid as Bilaal didnot have ownership of the cement when he sold it.




Two Exceptions:

• Salam (forward sale)

• Istisnaa’ (ordering the manufacture of an item)




4. قض - POSSESSION

The subject of sale must be in the possession of the seller at thetime of sale.

Example:Moosa’s Tile-orama bought a consignment of tilesfrom China. The sale was concluded and Moosa paid for the

goods as well. Whilst the consignment is still en-route to SouthAfrica, Moosa begins selling the tiles (with samples). This saleis invalid. Although Moosa owns the shipment, however he has

not yet taken possession of it.




Elucidation: Islamically, it is impermissible to sell

something until one has assumed the risk of thatcommodity. Once possession of an item is taken, risk passes from seller to buyer. It will now be permissibleto sell it.




SOLUTIONS:

1. Take possession of the goods or appoint an agent todo so before selling.

2. Act as an agent in selling the goods and request a

commission from the supplier.




5. INSTANT AND DEFINITE

The sale must be instant. It cannot be attributed to afuture date or a future event or contingent.

Example: A sale is concluded with the followingcondition, “If you are successful in receiving a loan

from ABC, then this car is sold to you”. Such a sale isinvalid.





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First Steps Economics - Presentation 2