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Is a commercial transaction where a sum is paid to a contractor to purchase goods and sell them at a predetermined price, along with receiving a check for the paid amount plus the agreed-upon profit, considered permissible (halal) or usury (riba)? And how can one extricate themselves from it if it is usury?

1 min readAlso available in العربية

The transaction between you and the contractor, if the contractor guarantees the principal and a known profit, is invalid because it is a loan with interest. However, if the transaction is that you pay him the principal for him to buy and sell goods without a guarantee for the principal except in cases of transgression or negligence, and the profit is divided between you, and the loss is borne by the principal, then it is a lawful and permissible mudarabah. Likewise, if you authorize him to buy and sell goods for a fee or a percentage, and the goods are a trust in his possession, which he does not guarantee except in cases of transgression or negligence. There is no objection to taking a check for the original amount as proof, provided the money is not guaranteed by him.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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