Buying and Selling: Ruling on Penalty Clauses for Delayed Delivery in Sale Agreements

Practical Laws of Islam as per the teachings of Imam Khamenei

Buying and Selling: Ruling on Penalty Clauses for Delayed Delivery in Sale Agreements

English:

Question #1521:

Should the buyer stipulate in the sale agreement that the seller pays a particular amount of money for any delay in delivering the goods beyond the agreed date, is this binding?

Answer #1521:

There is no harm in stipulating such a condition and the seller is obliged, in case of delay in the delivery of the sold goods, to act according to it. The buyer, also, has the right to demand the condition be honoured by the vendor.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Buying and Selling