Carrying out a business transaction with the option of canceling it

as-salaamu alaikum:

A person needs money. He sells his assets (anything from Gold Ring to vaccum cleaner) to a dealer/trader/business person to get money for his needs.

The business person purchases it at a price which may be at market value and possibly (most likely) less so that he can make money by selling the product/asset.

The business person, however, gives an option to the seller (person who needs money) that if he wants to buy back the product he can do so at the same price but he has to do so within x time (say 2 weeks or 1 month or whatever agreed upon time is). If the needy person does not come back to buy the asset then it now belongs to the business person.

I know this may seem to be a straight forward case but this can be used as a marketing or advertising feature which may attract many.

I am assuming this is a straight forward way and should be a halal transaction.

Wasalaam

 بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما

Selling one’s assets to obtain money for one’s needs is permissible whether the sale price is at par with, above, or below the market value.

As far as the rest of your question is concerned, it is permissible for the buyer to give the seller the option of voiding the transaction and therefore taking back the object of sale, regardless of how much time is given for the option. After the allotted time period expires, the object of sale will remain in the ownership of the buyer and the seller will have lost his right to void the transaction.

والله اعلم

Allah subhanahu wa ta’ala knows best.

Taha Abdulkareem

Approved by Mufti Husain Ahmad Madani