Definition of selling by installments

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  • 1 Definition of selling by installments
  • 2 terms of sale of installments
  • 3 Ethics of selling installments
  • 4 pros and cons of selling installments
  • 5 The legality of selling installments Invest,training,Traders,Broker,Forex ,Stock ,Project ,Business,Investment,Products,Bank,Currency,commissions,money,cash,loans,lawyer,lawyers,oil
  • 6 References

 Definition of selling by installments Invest,training,Traders,Broker,Forex ,Stock ,Project ,Business,Investment,Products,Bank,Currency,commissions,money,cash,loans,lawyer,lawyers,oil

Sale installment ( in English: Installment Sale) is a financial transaction pays through which the sale price of a product that in two installments, or a group of payments over a specified period of time, [1] and also known as an installment sale that sell someone something certain, in exchange for a portion of its value Immediately, while the remaining amount is obtained in arranged payments, until the entire financial amount is paid. [2] Another definition of installment sale is that it is a method of selling that allows part of the financial profits to be deferred to future periods. The buyer must pay annual or regular installments or payments during a predetermined period, [3] and the sale of installment is also known as a sale contract that depends on the price A deferred payment that is performed at separate and known times. [4]

Conditions of sale by installments

The sale of installments depends on a set of special conditions for this type of sale, namely:

  • Conditions for convening: It is a set of conditions that must be met in the contract for the sale of installments, and it is divided into the following: [5]
    • Conditions for the contract: These are the conditions that must be described as a contract for the sale of installments, the most important of which are:
      • Being reasonable and reasonable.
      • To be satisfied with the contract for the sale of installments, God Almighty said: “O you who believe, do not eat your money between you with falsehood, except that it is a trade from God.” [6]
    • Terms of contract: are the conditions in which the contract form should be distinguished, including:
      • Acceptance and affirmation exists among the contractors.
      • That the acceptance of the contract is within one council.
      • Are there no contraindications to the acceptance?
    • Conditions of the contracted: These are the special conditions for the quality or nature of the goods sold, the most important of which are:
      • That the contractee is characterized as legitimate money .
      • The presence of the sold goods when preparing the contract, as it is not permissible to sell the non-existent.
      • Making use of the contracted person, as it is not permissible to sell things that are not useful.
      • That it is possible to hand over the contractor, as it is not permissible to sell intangible things, such as birds in the sky.
  • Conditions of validity of the sale: These are the conditions that must exist in order to ensure the validity of the sale of installments, namely: [5]
    • That everything is linked to the product or thing sold, as is known, such as its nature, price, and deferred term for payment of its value.
    • The sale may not be temporary; that is, the requirement for this sale is the realization of the transfer of ownership between its parties.
    • Selling is a benefit, because nothing is sold with something of equal value.
    • Does the sales contract not include any condition that leads to its corruption, such as the requirement of an increased benefit for one of the parties to the contract, and not compatible with what the custom contracts say, such as the seller's use of the sold product for a period of time after its sale.
  • Terms of entry into force of sale: are the conditions that contribute to achieving the sale, and depend on two conditions: [5]
    • That the product sold belongs to the seller’s ownership, or has the right to dispose of it, as the sale that does not belong to the seller’s property is not executed.
    • The sold product does not have rights to a non-seller, as mortgaged or leased products may not be sold.
  • Conditions of commitment: These are the special conditions for contract compliance, the most important of which are: [5]
    • The sold product is free of any condition, as the sale does not become binding in the event of any imposed conditions, and the contract may be canceled and not continued.
    • The sale contract does not include any coercion against one of the parties.

Ethics of selling installments

There is a set of special etiquette in selling installments as one of the types of sale that can be applied when needed, and the following is information on the most important etiquette of selling installments: [7]
  • The reliance on this type of sale must not always be dependent on either the merchants or buyers; that is, it is important that the merchant does not rely on selling all of his merchandise using the method of selling the installment, because he may not get immediate profits from this sale, or he may face delays in paying the premiums. From buyers.
  • The buyer does not sell the installment, unless he is willing to pay the premiums due from him.
  • The merchant must not exploit people's needs by increasing the profit percentage that he places on the products sold in installments.

Pros and cons of selling installment

The sale of installments, like any other types of sale, depends on many pros and cons, which are: [8]
  • Advantages of selling installments: are the advantages that contribute to adopting the sale of installments as a good way for anyone who wants to obtain a specific good, but he does not have the ability to pay for it, and among the most important advantages of selling installments:
    • Providing buyers' needs when they cannot afford to pay for the goods.
    • Sale of installments is considered a good type of sale if it is invested correctly.
  • Disadvantages of selling by installments: They are among the disadvantages of this type of Invest,training,Traders,Broker,Forex ,Stock ,Project ,Business,Investment,Products,Bank,Currency,commissions,money,cash,loans,lawyer,lawyers,oilsale, including:
    • Linking the dhimma with the debt , which is not a good thing, it is the duty of the individual to pay the debt to him as best he can.
    • Some people may continue to rely on this type of sale, which leads to the accumulation of their debts, and increases their concerns and those of their families.
    • Wasting money in installments when purchasing entertainment products that do not meet any necessary needs.

The legality of selling by installments

The installment sale of the types of sales award; the majority of scholars agreed on this passport type of sale, but on the condition that determines the price of the goods when drafting the contract , and not after with determining the value of premium own, was inferred judgment the legality of the installment sale by Aisha - May God be pleased with her - when she said: “A libation came to me, and she said: I wrote my family for nine times, in every year of protection .” [9] It is inferred from this hadith that the sale of installments was approved by the Messenger of God - may God bless him Invest,training,Traders,Broker,Forex ,Stock ,Project ,Business,Investment,Products,Bank,Currency,commissions,money,cash,loans,lawyer,lawyers,oiland grant him peace -. [10]