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Is the percentage mentioned in the trade offer with the foodstuff company considered usury or trade profit, and is dealing with them permissible or forbidden?

1 min readAlso available in العربية

The aforementioned transaction contains ambiguity and corruption in all possibilities:

1. Lease Contract (Ijarah): It is invalid due to the unknown rent, as the rent changes according to the duration of the sale. It can be corrected by specifying a known rent for each item or a known percentage.

2. Sale Contract (Bay'): It is invalid due to the unknown price, as the price changes according to the duration of the sale. The ambiguity increases if the seller bears the costs of transport and storage, should these costs be unknown.

3. Financing and Partnership Contract (Tamwil wa Musharakah): It is invalid due to the unknown share of the financier or partner in the profit (fluctuating between 2.5% and less). To correct it, the financier's share of the profit must be known and common, and their capital should not be guaranteed; otherwise, it becomes an interest-based loan (riba).

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

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