Is it permissible to sell olive oil to customers by description and enticement, then request an advance payment before concluding the contract and shipping, with the remaining amount to be settled upon receipt of the shipping documents?
It is not permissible to sell what one does not own, with the exception of Bayʿ al-Salam (forward sale), which requires the full price to be paid at the time of the contract, and for the commodity to be described and its delivery date known.
If the buyer does not pay the full price, there are two solutions:
1. Murabaha for the one who orders the purchase: This is where you agree with the buyer that you will purchase the commodity and then sell it to him at a known profit. You must purchase the commodity and take possession of it before concluding the sale contract with him. It is permissible to take an advance payment as a earnest deposit, provided it is not utilized. 2. Sale upon the arrival of the commodity: This is where the commodity is shipped to the buyer through a representative who concludes the sale and receives the payment on your behalf.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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