What is the ruling on the installment program followed by the cooperative society, which involves the society owning the commodity in cash then selling it to members in installments with a profit margin, even with the possibility for the member to withdraw from the purchase even after the society has acquired the commodity?
The transaction mentioned is a permissible murabaha sale. The fine paid for canceling the sale with the store falls under the category of a permissible penalty clause in non-debt transactions. Therefore, paying this fine in exchange for the buyer's withdrawal from the purchase is permissible.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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