What is an exclusive agency, what is the ruling on dealing with it, and are there conditions for the validity of dealing with it, or does it fall under the category of monopoly?
Exclusive agency is a contract between a principal and an agent whom the principal chooses to grant the exclusive right to sell and distribute their products within a specific geographical area in exchange for a commission. This type of contract is not considered a monopoly unless the agent hoards essential goods from people to raise prices. Exclusive agency is permissible if the product is a luxury item or has a fair-priced alternative, and is sold at a price agreed upon by both parties. However, if the product is essential and the agent sells it at a fair price, the state should not interfere with pricing. But if the product is essential and the agent refuses to sell it except at an exorbitant price, then the state must intervene with compulsory pricing.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 111785
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
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