Imam Khamenei – Buying & Selling ; Terms of Contract

Q1. Is de facto transaction (a contract implied by the actions or conduct of the parties involved, even if there isn’t a formal, written agreement) binding as the one which is done through utterance of the formula?

A: Insofar as their binding powers are concerned, both de facto transaction (a contract implied by the actions or conduct of the parties involved, even if there isn’t a formal, written agreement) and that done through utterance of the formula are the same.

Q2. Is it permissible to buy property without officially registering its deed with the lands department?

A: The materialization of buying and selling does not call for procuring an official document. The yardstick is the actual transfer of the property by the owner, his agent, or guardian, by way of a lawful and valid selling procedure, even without registering the deed.

Q3. Is preparing an unofficial sale contract sufficient for the materialization of sale between the vendor and purchaser? And is the intentions of both parties to carry out the contract sufficient to make the deal a reality and, therefore, does it bind the vendor to prepare the official sale document and transfer the goods to the purchaser?

A: Neither the mere intention to sell nor the preparation of an unofficial sale document is sufficient for the materialization of the sale and transfer of the ownership of goods to the purchaser. Unless the deal is struck according to shar‘ī norms, the vendor is not obliged to prepare sale document in the name of the purchaser and transfer the goods to him.

Ayatollah Sistani – Buying and Selling

Ruling1. It is befitting for a trader to learn the laws (aḥkām) of buying and selling concerning issues he commonly encounters. In fact, if he would be at risk of committing an unlawful (ḥarām) act or abandoning an obligatory (wājib) act as a result of not learning the laws, then it would be necessary [not just befitting] for him to learn them. It is reported that His Eminence Imam al-Ṣādiq (ʿA) said, ‘One who wishes to engage in buying and selling must learn its laws. If he were to buy and sell before learning its laws, he would fall into ruin by means of invalid (bāṭil) and dubious transactions (muʿāmalāt).’

Ruling 2. If a person does not know whether a transaction (muʿāmalah) he has conducted is valid (ṣaḥīḥ) or invalid due to him not knowing the ruling (masʾalah), he cannot have disposal over what he received in the transaction nor what he handed over; rather, he must learn the ruling or exercise precaution (iḥtiyāṭ), albeit by means of a settlement (muṣālaḥah). However, if he knows that the other party consents to him having disposal over the item even though the transaction is invalid, then having disposal over it is permitted (jāʾiz).

Ruling 3. If a person does not have any wealth but certain expenses are obligatory for him – such as providing for his wife and children – he must earn his living. As for recommended (mustaḥabb) matters – such as providing a better livelihood for one’s family and helping the poor (fuqarāʾ) – for such matters, earning is recommended.

Chapter 10: Buying and Selling – Islamic Laws – The Official Website of the Office of His Eminence Al-Sayyid Ali Al-Husseini Al-Sistani

Ayatollah Makarem Shirazi – The Rules of Selling and Buying

Ruling 1: It is obligatory upon every Muslim to learn the rules of business transactions to the extent of his need. It is obligatory upon the scholars (‘Ulamaa’) to teach these rules to the people.

Ruling 2: To earn, work, labour and strive in the way of business, agriculture and vocation and things similar to that is obligatory upon he who does not possess the expenses (of maintenance) of his wife and children. Likewise, it is obligatory to preserve the order of Islamic society and secure its needs. In other than these situations, earning and labour is emphatically recommended, in particular, to assist the poor and for the comfort of dependents.

Ruling 3: It is recommended that the seller make no distinction between buyers in the price of a commodity nor be difficult nor swear (an oath). When the buyer regrets (the purchase) and seeks to cancel the transaction, (the seller should) accept the cancellation.