Hardware store selling sand and stone that is not in one’s possession
Question:-
A certain family member of ours owns a hardware store. He supplies items such as sand, crusher run, ready-mixed concrete etc. However, he does not have possession of these items. Instead, when a customer comes and purchases the items, he then sends his driver to purchase the sand or the crusher run from his supplier and then delivers it to the customer. And in the scenario where he sells ready-mixed concrete, after taking the money from the customer, he orders the items and gets it delivered to the customer. He justifies this by stating that this is similar to a Bay-e-Salam. However, the delivery date is not stipulated, rather the customer provides the shopkeeper with an approximate date. For example, the customer will say to him that he wants the ready-mixed concrete delivered around the 17th of March, but he could request it a few days before or a few days later, depending on when he requires the concrete.
1. Is this permissible?
2. Will this manner of doing business fall under the category of Bay-e-Salam?
3. Would the money which he is earning from this type of transaction be Halaal or Haraam?
Answer:-
The shopkeeper can keep the customer’s funds as Amaanat with him, but not conclude the transaction. Since the funds are Amaanat, it should be kept aside and cannot be used by the shopkeeper. The shopkeeper should then order the required goods from the supplier and take possession of it (by sending his driver to collect it). When the goods are delivered to the customer (by the driver) and the customer signs the delivery note, then it indicates that the customer has accepted and finalized the transaction. The shopkeeper should now hand over the Amaanat funds to the customer, who will use the funds (after taking possession of it) to pay the shopkeeper for the goods supplied. This is the first method of concluding the transaction.
The second method is of Bay-e-Salam. In this case, the customer will be requested to pay upfront and the funds will be used to purchase the goods. In this instance, the required product should be known in detail, together with its specifications, the grade or quality of the product, the required quantity, the time-frame required to get the product, the capital required to purchase the goods, and the place of delivery (when delivery charges will be incurred).
The Muslam Ilai (seller) must provide a date of delivery which the Rabb-us-Salam (purchaser) must agree upon. The purchaser will only be entitled to his goods on the stipulated date and cannot demand to have the goods before the stipulated date. Yes, if the seller manages to get the goods to the purchaser before the stipulated date (without any coercion), then it will not affect the validity of the transaction. This is the second method of concluding the transaction in accordance to Shariah.
Although the money earned from his transactions will not be regarded as Haraam, he should correct his method of transacting by ensuring that the transaction is carried out as required in Shariah.
N.B. When purchasing ready-mixed concrete someone should be appointed at the cement plant to take possession of the goods (by signing the invoice) on behalf of the seller, before dispatching the concrete to the customer.
ALLAH TA’ALA KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date: 29 Shabaan 1444 / 22 March 2023