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Deferring Payment

Is it permissible to defer payment?

It is permissible to defer payment as long as the seller agrees and the payment date is known beforehand. The sale is invalid if the buyer makes the following general statement before the purchase: “I will buy this now if I am allowed to pay later”, without specifying a time period for the deferral. The sale is valid if this same statement is made after the purchase, but the seller is then entitled to demand the money immediately, though he may waive this right by merely inquiring about the date of payment. It is a condition for the validity of a deferred payment that the seller knows the date of payment, and invalid for even the seller to allow for an open-ended deferral (e.g. “Pay me whenever you are able”).

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