Partnership: Ruling on Validity of Auction Sale When Payment Is Delayed
Practical Laws of Islam as per the teachings of Imam Khamenei
Partnership: Ruling on Validity of Auction Sale When Payment Is Delayed
English:
Question #1682:
As a result of a disagreement between the three of us, we decided to sell the poultry business we own as partners at auction. One of us won the bidding. Ever since, he has been procrastinating with regard to paying us our money. Can this transaction still be deemed shar‘ī?
Answer #1682:
Getting the auction underway and tendering a higher price by one of the partners, or any other party for that matter, is not sufficient to complete the sale and own the business. Therefore, if the sale of shares has not been concluded properly and in a shar‘ī way, the partnership should remain intact. However, if the sale has gone through in a proper manner, the delay in paying the price for the business by the buyer should not render the sale transaction invalid.
-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Partnership