Fatwa: # 44136
Category: Business Matters
Country:
Date: 29th August 2020

Title

Does this all fulfill the criteria of a Salama Contract?

Question

Dear Mufti Sahab,

As Salamalikum,

Hope you are doing good

As per your previous rulings Dropshipping is haram however, one can pursue it by making it as Salama contract. To add in new revenue streams and to monetize users, I am planning to add in drop shipping and every product will be as per the ruling given by you. I will be glad if you can help me in evaluating it:

  • I will deliver the exact item 
  • Time duration for delivering (this can be approximate but as defined by seller)
  • Paying the item price in full 

I am also adding in a tab shipping and terms and conditions, whereby I will be putting in all the conditions like

How do you ship packages?

Packages from our partner or wholesaler warehouses in China will be shipped by ePacket or EMS depending on the weight and size of the product. Packages shipped from our wholesaler US warehouse are shipped through USPS.

Do you ship worldwide?

Yes. We provide free shipping to over 200 countries around the world. However, there are some locations we are unable to ship to. If you happen to be located in one of those countries we will contact you.

What about customs?

We are not responsible for any customs fees once the items have shipped. By purchasing our products, you consent that one or more packages may be shipped to you and may get customs fees when they arrive in your country.

How long does shipping take?

Shipping time varies by location. These are our estimates:

Location*Estimated Shipping Time
United States 10-20 Business days
Canada, Europe 10-20 Business days
Australia, New Zealand 10-30 Business days
Central & South America 15-30 Business days
Asia 10-20 Business days
Africa 15-45 Business days
*This doesn’t include our 2-5 day processing time.

Do you provide tracking information?

Yes, you will receive an email once your order ships that contain your tracking information. If you haven’t received tracking info within 5 days, please contact us.

My tracking says “no information available at the moment”.

For some shipping companies, it takes 2-5 business days for the tracking information to update on the system. If your order was placed more than 5 business days ago and there is still no information on your tracking number, please contact us.

Will my items be sent in one package?

For logistical reasons, items in the same purchase will sometimes be sent in separate packages, even if you've specified combined shipping, as we are partnered with multiple wholesalers

If you have any other questions, please contact us and we will do our best to help you out.

REFUNDS & RETURNS POLICY

Order cancellation

All orders can be canceled until they are shipped. If your order has been paid and you need to make a change or cancel an order, you must contact us within 12 hours. Once the packaging and shipping process has started, it can no longer be canceled.

Refunds

Your satisfaction is our #1 priority. Therefore, if you’d like a refund you can request one no matter the reason.

If you did not receive the product within the guaranteed time( 45 days not including 2-5 day processing) you can request a refund or a reshipment.

If you received the wrong item you can request a refund or a reshipment.

If you do not want the product you’ve received you may request a refund but you must return the item at your expense and the item must be unused.

  • Your order did not arrive due to factors within your control (i.e. providing the wrong shipping address)
  • Your order did not arrive due to exceptional circumstances outside the control of our (i.e. not cleared by customs, delayed by a natural disaster).
  • Other exceptional circumstances outside the control of us

*You can submit refund requests within 15 days after the guaranteed period for delivery (45 days) has expired. You can do it by sending a message on Contact Us page

If you are approved for a refund, then your refund will be processed, and a credit will automatically be applied to your credit card or original method of payment, within 14 days.

Exchanges

If for any reason you would like to exchange your product, perhaps for a different size in clothing. You must contact us first and we will guide you through the steps.

Please do not send your purchase back to us unless we authorise you to do so

Does this all fulfill the criteria of Salama Contract.

 

Jazakallah Khair for your answer.

 

 

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

We sincerely apologize for our belated response.

Dropshipping is a sales method in which the retailer does not keep goods in stock but instead transfers its customer's orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.

The common practice of dropshipping is problematic as it entails selling what one does not own and transfers proprietorship to the buyer before the retailer takes possession of the commodity.

As for the first problem, it is resolved by structuring the agreement into a Salam contract.   Salam is a sale whereby the seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advanced price fully paid on spot. The permissibility of Salam is dependent on the following conditions.

1.Full payment of the price should be made at the time of effecting the sale. Failing to do so will be tantamount to a sale of debt against debt, this is expressly prohibited by Nabi (Sallallahu Alaihi Wasallam).

2.Salam can only be effected in those commodities whose quality and quantity can be specified. The quality of the commodity must be fully specified leaving no ambiguity that may lead to a dispute. All the possible details in this respect must be expressly mentioned. Similarly, the quantity of the commodity is agreed upon in unequivocal terms. If the commodity is quantified in weights according to the usage of its traders, its weight must be determined, and if it is quantified through measures, its exact measure should be known.

3. Salam cannot be affected on a particular commodity or a product of a particular field or farm. For example, if the seller undertakes to supply the wheat of a particular field, or the fruit of a particular tree, the Salam will not be valid. The same rule is applicable to every commodity the supply of which is not certain.

4.The time and place of delivery must be specified.

5. Salam cannot be effected in respect of things which must be delivered at spot. For example, if gold is purchased in exchange for silver, it is necessary, according to Shari’ah, that the delivery of both be simultaneous.

6.It is necessary that the commodity remains available in the market right from the day of contract up to the date of delivery. Therefore, if a commodity is not available in the market at the time of the contract, Salam cannot be effected in respect of that commodity, even though it is expected that it will be available in the markets at the date of delivery.

Before discussing the solution to the second problem, it is important to discuss the relationship between the retailer and supplier. We have discussed above that the client and retailer will enter into a Salam contract. The structure of the contract between the retailer and client will depend on the nature of the item.

a)     If the item is such that the supplier has the item in stock, the retailer will enter a regular buy-and-sale transaction.

b)    If the item is not available, then the transaction between the supplier and retailer will be that of a Salam. This transaction is known as a parallel Salam, wherein the retailer enters into a Salam contract with the customer and enters into another Salam contract with the supplier.

As mentioned above, a problematic component of drop shipping is transferring proprietorship to the buyer before the retailer takes possession of the commodity. There two ways to overcome this issue.

  1. Providing packaging that distinguishes the retailer from the supplier. The supplier’s packing of the item into the retailer’s provided packaging will constitute possession of the commodity. This is because, upon the conclusion of the sale, the item now belongs to the retailer. The retailer has instructed the supplier to place items that he owns into his own packaging. Thus, placing the items into a packaging that the retailer owns consolidates his ownership. Hence, possession will take place. Then, the supplier will undertake the responsibility of shipping.[i]

 

To avail of this option, the retailer will have to arrange the delivery of his custom packaging to the supplier beforehand. This is a commonly available service.

 

It is important to note that this is only valid in scenario (a). This is because in scenario (b), the conclusion of the contract does not entail ownership. Rather, it merely confers the right to receive a specific item. Thus, the instruction of placing the items into his packaging is incorrect from the onset, as the items do not belong to him.[ii]

 

  1. Appointing the shipping company as the retailer’s representative to take possession on the retailer’s behalf.  Generally, the shipping company has a contractual relationship with the supplier and not with the retailer.  Thus, it would be difficult to assume the shipping company to be a representative of the retailer.  However, if the retailer deals directly with the shipping company and enters a contractual agreement with the shipping company to collect the packaged parcels from the supplier, and then deliver it to the customer, this would be valid.  The shipping company's possession will be regarded as the retailer’s possession. This is valid for both scenarios.

It should be noted that merely paying for the shipping does not appoint the shipping company as the retailer’s representative. Rather, the retailer must enter a contractual relationship with the shipping company for the wakalah (representation) to be valid.

And Allah Ta’āla Knows Best

Mirza-Zain Baig

Student - Darul Iftaa

Montréal, Québec, Canada

Checked and Approved by,

Mufti Ebrahim Desai.

 

 


[i]

الأشباه والنظائر - حنفي (ص: 149) 

ومنه : لو شرى كر بر عينا وأمر المشتري البائع بقبضه للمشتري لم يصح ولو دفع إليه غرارة وأمره أن يكيله فيها صح إذ البائع لا يصلح وكيلا عن المشتري في القبض قصدا ويصلح ضمنا وحكما لأجل الغرارة

درر الحكام شرح مجلة الأحكام - ط. العلمية (1/ 50) 

( المادة 54 )  يغتفر في التوابع ما لا يغتفر في غيرها  هذه القاعدة مأخوذة من كتاب الأشباه وقاعدة ( يغتفر للشيء ضمنا ما لا يغتفر قصدا ) قريبة من هذه القاعدة وتترجم هذه القاعدة من التركية قد يجوز تبعا ما لا يجوز ابتداء . مثال ذلك : لو وكل المشتري البائع في قبض المبيع فالوكالة لا تصح أما لو أعطى المشتري البائع كيسا ليضع فيه المبيع اعتبر ذلك قبضا من المشتري والسبب في عدم جواز الوكالة في الصورة الأولى وجوازها في الثانية أن البائع كان في الصورة الأولى مسلما ومستلما في وقت واحد والحال أنه من الواجب في كل عقد أن يتولاه اثنان وأن يسلم البائع المبيع للمشتري أما في الصورة الثانية فلأن المشتري أعطى وعاء للبائع والبائع عمل بإشارته بعد ذلك قبضا من المشتري وقبض البائع المبيع كان تبعا فصح . كذلك لو اشترى شخص من آخر قمحا وطلب إليه أن يطحن القمح والبائع طحنه يكون المشتري قابضا القمح تبعا لطلبه من البائع أن يطحنه

بدائع الصنائع - ث (5/ 246)

وَلَوْ أَعَارَ الْمُشْتَرِي الْمَبِيعَ للبايع ( ( ( للبائع ) ) ) أو أَوْدَعَهُ أو آجَرَهُ لم يَكُنْ شَيْءٌ من ذلك قَبْضًا لِأَنَّ هذه التَّصَرُّفَاتِ لم تَصِحَّ من الْمُشْتَرِي لِأَنَّ يَدَ الْحَبْسِ بِطَرِيقِ الإصالة ثَابِتَةٌ للبايع ( ( ( للبائع ) ) ) فَلَا يُتَصَوَّرُ إثْبَاتُ يَدِ النِّيَابَةِ له بِهَذِهِ التَّصَرُّفَاتِ فلم تَصِحَّ وَالْتَحَقَتْ بِالْعَدَمِ وَلَوْ أَعَارَهُ أو أَوْدَعَهُ أَجْنَبِيًّا صَارَ قَابِضًا لِأَنَّ الْإِعَارَةَ وَالْإِيدَاعَ إيَّاهُ صَحِيحٌ فَقَدْ أَثْبَتَ يَدَ النِّيَابَةِ لِغَيْرِهِ فَصَارَ قَابِضًا

[ii]

الأصل للشيباني ط قطر (2/ 395)

وقال محمد: كان أبو حنيفة يقول: لو أن رجلاً اشترى من رجل طعاماً بعينه على أنه كر ثم دفع إليه غرائر (5) فأمره أن يكيله فيها وليس المشتري بحاضر ففعل إنه قبض، وله أن يبيعه. ولو لم يكن اشتراه ولكن أسلم إليه فيه (6) فدفع إليه غرائر (7) يكيله فيها فكاله وهو غائب عنه لم يكن قَبَض ولم يجز. وفرّق ما بينهما وقال: ألا ترى أنه إذا اشتراه بعينه أنه له، فإذا أمره بكيله في غرائره فكأنه أمره أن يطحنه، فيجوز ذلك ويكون قبضاً منه؛ لأنه شيء بعينه يملكه أحدث (8) فيه عملاً بأمره فصار قابضاً، والسلم دين لا يملكه بعينه، فإن ما طحنه (9) وكاله فهو من مال الذي عليه، ولا يكون قابضاً من حنطة دقيقاً في السلم، وهما مختلفان

 

 

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]