What is the ruling on signing contracts that include punitive clauses and usurious interest that cannot be avoided, such as contracts for electricity, gas, and water services, or a contract for purchasing land that requires a down payment and signing a contract that includes punitive clauses and usurious interest, knowing that the buyer will pay the price of the land in cash and will not take a usurious loan, and that the seller is unwilling to waive these conditions?

It is forbidden to sign a contract that includes an usurious condition, such as a late payment penalty for installments or a penalty clause on debts, except in two cases: The first is in cases of necessity and dire need, such as the absence of another seller or the inability to obtain essential services except through such a contract, provided there is an intention to pay on time to avoid usury. The second is in adhesion contracts (such as electricity and water contracts) whose terms cannot be altered; in these cases, it is permissible to sign them due to need. Therefore, one should avoid the forbidden condition when purchasing land. If that is not possible, it is permissible to sign with the intention of prompt payment. There is no harm in electricity, gas, and water contracts that cannot be changed.