Does working in supply, where industrial equipment supply services are offered to clients, then a price is sought from the market, a profit margin is added, and it is presented to the client, and after receiving the purchase order and the down payment, the goods are purchased from the supplier and delivered to the client—does this fall within the scope of selling what one does not possess? And what is the legitimate Islamic guidance regarding this?
This contract can be structured in two ways:
1. Supply Contract: If the commodity requires manufacturing: This is a manufacturing contract (Istisna'), and the customer may pay the full price or a portion of it. If the commodity does not require manufacturing (is readily available): If the importer pays the full price in advance at the time of the contract: This is a forward sale contract (Salam), and it is permissible under its conditions. If the importer does not pay the full price in advance at the time of the contract: This is not permissible because it constitutes selling debt for debt (بيع الكالئ بالكالئ), unless the promise is non-binding and the down payment is a guarantee of seriousness and not part of the price. In a supply contract, the commodity is guaranteed by the supplier until it reaches the customer.
2. Agency Contract: You act as an agent for the customer in supplying commodities in exchange for a fixed fee or an agreed-upon percentage. The purchase is made on behalf of the customer (in their name or the agent's name), and it is not permissible to take additional profit without the customer's knowledge. In an agency contract, the commodity is not guaranteed by the agent unless there is transgression or negligence; rather, it is guaranteed by the customer.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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