Is a contract concluded to purchase a house in Egypt, which includes penalty clauses, considered usurious? And how can one please the Lord of the Worlds? Is it necessary to cancel the contract entirely, or is it sufficient to cancel the penalty clauses? Is it permissible to draw up the contract at a higher price with a reduction if payment is made early? And is borrowing from the bank or friends to pay off the amount and then repaying it in installments considered usury?

A penalty clause related to the execution of work is permissible, such as a contractor breaching what was agreed upon, causing harm to the other party. However, a penalty clause stipulated for delaying the fulfillment of a debt is not legitimate, because it is explicit riba (usury). The clause mentioned in the question is of the type of penalty clause related to delaying the fulfillment of a debt, and it is not permissible. There is a difference of opinion regarding sufficing with the cancellation of the clause while keeping the previous contract, or canceling the first contract entirely. The preferable course is to draw up a new contract unless it entails hardship and difficulty, in which case there is no harm in adopting the validity of the contract and canceling the invalid, additional clause.