What is the ruling on trading in smuggled medicines when the medicines for which there is an exclusive agent in the country are double the price?
An exclusive agency is a legally valid contract that obligates both parties to fulfill its terms. In such an arrangement, the supplying company commits to selling its products in the agent's country solely through that agent, and the agent may be required not to sell similar goods. This condition is permissible as long as it serves the interests of both parties and does not involve gharar (excessive uncertainty) or riba (usury).
However, obtaining these medicines from outside the exclusive agent's country, importing them, and selling them does not contradict the exclusive agency contract. This is because the contract does not prevent the supplying company from selling outside the agent's country. Consequently, merchants purchasing medicines from external sources is not considered an infringement on the exclusive agent's right, as these merchants are not parties to the agency contract and are not bound by it. The exclusive agent does not have the right to prevent all people from trading in this commodity, as that could lead to price manipulation and unlawful monopolization, especially if the commodity is essential, such as medicines.
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