6829 – 0067
Question:
Are these terms and conditions shariah compliant?
*Lay-Bye Terms and Conditions:*
1. *Duration:* The lay-bye period is set for a duration of 3 months from the date of initiating the lay-bye agreement.
2. *Collection Deadline:* It is the responsibility of the buyer to collect the item(s) within the stipulated 3-month period. Failure to do so will result in the activation of additional terms.
3. *Extension:*
– Extension of the lay-bye period may be considered under special circumstances, subject to approval, within the 3 months lay-bye period.
4. *Storage Fee:* If the item(s) are not collected within the initial 3-month period, a storage of 1 month will be given and the deposit amount will be deducted. This fee will be deducted from the deposited amount.
5. *Restocking:* In the event that the buyer fails to collect the item(s) after the storage period the item(s) will be restocked, and the lay-bye agreement will be considered null and void.
By entering into this lay-bye agreement, the buyer acknowledges and agrees to abide by these terms and conditions.
Answer:
As salām ʿalaikum wa raḥmatullāhī wa barakātuhū
In the Name of Allāh, the Most Gracious, the Most Merciful.
In a lay-by transaction, the money paid as a deposit by the customer will be regarded as an amānat (trust) in the hands of the seller and will only be regarded as a payment for the purchased item when the last instalment is paid off.
The commodity of sale in a lay bye contract is not considered to be the property or ownership of the purchaser. Rather, the commodity belongs to the prospective seller until the transaction is effectuated. Therefore, the seller cannot charge a holding/deposit fee.
However, both the seller and purchaser may enter into a non-legally binding promissory agreement with each other as a Sharʿī alternative. The promissory agreement is an individual contract separate from the main lay bye contract stating that the purchaser agrees to purchase a specific commodity on a specific date in the future.
It is important to note that this promissory agreement is non-legally binding. However, the purchaser is morally obliged to fulfil his promise to purchase.
In the event that the buyer fails to collect the item (s) after the storage period, the seller would have to return the ‘amānat” to the purchaser. If the purchaser cannot be reached for some reason and there is no way of contacting him, then the money should be dispensed as Sadaqah (charity).
And Allāh Taʿālā knows best.