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Simple Business contract help

Fatwaa ID: 1579

Zaid owns a car parts shop.

Ahmad owns a smaller car parts shop.

Ahmad makes a deal with zaid to put his tyres in Zaid’s big shop for sale.

They agree that any of Ahmad’s tyres that are sold in Zaid’s big shop will be split 70% for Ahmad (owner of tyres) and 30% for Zaid (owner of big shop).

The tyres remain in Ahmad’s ownership. Ahmad does not profit from any other sales in Zaid’s shop. Ahmad only profits from his tyres that are sold in Zaid’s shop.

after one year, Ahmad will take back the remaining tyres.

Is this valid?
if this is invalid, and there is one month left for the contract, what should be done?
If this is invalid, and the contract has ended, what should be done?

May Allah ta’ala reward you all greatly for your efforts. Ameen!

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

We commend you for your zeal to ensure Shari’ah compliance of your business. May Allaah Ta’aala bless you and your business.

We take note of the details of your query. The above agreement and contract is valid and permissible. It is in accordance to the wakaalah model.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

01/16/1445 AH – 08/03/2023 CE | 499

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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