Ethica Institute of Islamic Finance™

What are the conditions of validity for a buyer and seller?

The buyer and seller must both be:

• Sane;

• Adult, meaning both buyer and seller should have reached puberty (with some exceptions made based on customary practice, such as a responsible child selling fruit);

• Free from duress; meaning they should not be forced by an outside party to conduct transactions against their will;

• Acting in accordance with the Shariah; meaning that the permissibility of the transaction itself must not be obviated by the intention of the buyer or the seller. For instance, a Muslim weapons manufacturer must not sell weapons to a buyer at war with Muslims; a Muslim publisher must not offer printing services to an author spreading lies against Muslims; a Muslim computer programmer must not offer services to an aeronautics firm supplying weaponry to bomb Muslims; and so on;

• The seller must constructively own the item to be sold, or be legally authorized to represent the actual owner.

7 Day Free Islamic Finance Course

Please enter your first name and email address to start receiving your CIFE™ lessons instantly!

We value your privacy. We will never rent, sell, or spam email addresses.

1,000+ scholar-approved answers and growing...

7 Day Free Islamic Finance Course

ASK AN ISLAMIC FINANCE QUESTION

SEARCH ISLAMIC FINANCE Q&As

What’s New at Ethica