1.    A person sells a motor vehicle, fairly valued at R 100 000 for a price of R 200 000. The vehicle itself ( as the object of the sale) is exchanged as consideration for the price of R 200 000 based on the mutual consent of the contracting parties. In this situation, the sale is halal because it is in exchange of the asset per se, and is therefore not without reciprocal consideration فلم يكن أخذ من صاحبه شيئا بغير عوض
 

2.    On the other hand, if a person sells R 100 000 in exchange for R200 000, payable over an agreed future period, the seller takes the additional R 100 000 without the exchange of any reciprocal consideration. We cannot say that the consideration for the additional R 100 000 is the granting of credit over the deferred period, because the pure time period deferment is not regarded as property in the Shariah.

لان الإمهال فى مدة الأجل ليس مالا

3.    The Holy Quran accordingly states: “ Allah has permitted sale and prohibited Riba “ : Surah Al- Baqarah: Verse 275)
See Tafseer Al- Kabir ( Razi) and Tafseer Al- Khazen: commentary to verse 275 of Surah Al- Baqarah

MS Omar

27 October 2024