Is it permissible for food companies to guarantee their trade customers the price and shelf life, such that they pay them the difference in cash or free goods if the price drops or the expiration date approaches?
It is not permissible to stipulate a price or shelf-life guarantee in a sale due to the presence of (uncertainty) and jahalah (ignorance) concerning the price and the item being sold. The Prophet, peace and blessings be upon him, forbade sales involving gharar. This condition is considered invalid because it contradicts the essence of the contract. Some jurists are of the opinion that the contract becomes void due to the invalidity of the condition, while others hold that the contract remains valid and the condition is annulled. The permissible alternative is for the merchant to act as an agent for the company in distributing its products for a known commission.
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