Rafed English

Fatwas on Conditions Stipulated in the Contract

Q1519: Someone sold his orchard to someone else. The seller made a provision in the sale contract that the yield of the orchard belongs to him during his lifetime. Is such a deal valid?
A: There is no objection to selling some property without the return it makes for a definite period of time provided that the sold property has monetary value according to both shar‘ and common view that it is useful and productive at least after the agreed period. However, should the exception of the benefit for a non-specified period result in not knowing about the price of the property or the property itself, the sale is void because the sold item is of unknown specificities.

Q1520: 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?
A: 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 honored by the vendor.

Q1521: A person sold a shop with the condition that its roof remains as his own to build another storey on it if he so wished. Has the buyer the right of disposal over the roof of the property, noting that, if it had not been for this condition, the vendor would not have sold the property?
A: The buyer has no right of disposal over the roof, after it has been excluded by virtue of the provision in the contract.

Q1522: A person bought a partly built property. It was agreed that the vendor should not have the right to demand any money when it comes to registering the property in the name of the buyer. However, the vendor is now asking the buyer to pay a certain amount of money for this purpose. Has he the right to do so? And is it obligatory on the buyer to pay the money?
A: The vendor has to hand the sold property over to the buyer and register it in his name in compliance with the condition stipulated in the agreement. He has no right to demand any money over and above the sale price upon which they had agreed unless at the request of the buyer, the vendor has carried out a work commonly viewed as being of value and outside the remit of the sale contract.

Q1523: A plot of land was sold at a given price which was fully paid. In the sale agreement, it was stipulated that the buyer pays a particular amount to the vendor in return for registering the land in his name. The vendor is now demanding an inflated amount to carry out the registration procedure. Has he the right to do so?
A: After the deal has been concluded according to shar‘, it is incumbent on the vendor to honor all his obligations and stipulations within the contract vis-à-vis the buyer. He has no right to demand from the buyer any amount in excess of that he agreed upon.

Q1524: At the time of concluding a contract, both parties agreed that neither shall rescind the contract. It was further agreed that if the buyer changed his mind as to going ahead with the deal, he would forgo the down payment he had made to the vendor. For his part, the vendor agreed that in the event of a change of heart, he would return the down payment to the buyer plus an extra amount in return for the loss sustained by him. Is the mentioned stipulation of the right of revocation or bilateral revocation by them correct? And is it ḥalāl for both the parties to have a right to the money they may have made in the process?
A: The condition you have just mentioned is not regarded as a stipulation of the right of revocation or bilateral revocation, rather it is stipulating the payment of an amount for changing one’s mind regarding going ahead with the deal. Such a condition is not binding and, therefore, of no significance merely due to being mentioned in the initial sale papers and signing them, that is unless it is incorporated in the sale contract or the contract is based on such a condition. If this has been the case, the deal is valid and should, therefore, be honored. There is no harm in having the money made in this way at one’s disposal.

Q1525: A sale contract contains the clause: "If either party revokes this agreement, they should pay to the second party (x) amount of money in compensation":
1. Can this clause be regarded as a stipulation of the right of revocation?
2. Is such a condition valid?
3. If it is invalid, would the entire contract be so as well?
A: This is not a stipulation of the right of revocation. Rather, it is a condition to pay a certain amount of money in the event of the other party changing their mind and not going ahead with completing the deal. There is no harm in it if it became binding by way of a blinding contract between the two parties, or the blinding contract was based and concluded on it. However, a period of time has to be set for the fulfillment of such conditions which have a bearing on the price of the sold property. Otherwise, it is invalid.

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