A Question Regarding a Business Transaction
Question
Title: A Question Regarding a Business Transaction Question: Is the business transaction ( aqad ) whereby the customer and seller do not meet face-to-face (such as in mail order or online business) valid in Islam? What if the transaction is automatically processed by a machine (such as computer server or vending machine)? Is the transaction valid in Islam? Answer: If adequate measures are taken to avoid loss or fraud to both the parties to the transaction, such a transaction cannot be termed as prohibited in Islam. For the transaction to be allowable in Islam, it is not a necessary condition for both the parties to meet face-to-face. The transaction can take place through any reliable means of communication or interaction. The only thing to safeguard is that the means of finalizing the transaction should not inherently entail a chance of fraud or loss to any one or both of the parties to the transaction. 22 nd June 2000
Answer
Title: A Question Regarding a Business Transaction Question: Is the business transaction ( aqad ) whereby the customer and seller do not meet face-to-face (such as in mail order or online business) valid in Islam? What if the transaction is automatically processed by a machine (such as computer server or vending machine)? Is the transaction valid in Islam? Answer: If adequate measures are taken to avoid loss or fraud to both the parties to the transaction, such a transaction cannot be termed as prohibited in Islam. For the transaction to be allowable in Islam, it is not a necessary condition for both the parties to meet face-to-face. The transaction can take place through any reliable means of communication or interaction. The only thing to safeguard is that the means of finalizing the transaction should not inherently entail a chance of fraud or loss to any one or both of the parties to the transaction. 22 nd June 2000
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