Differing Cash And Installment Sale Prices

The seller should provide the purchaser with the two options and the purchaser can then decide on  which of the two options he is concluding the deal; i.e. at the cash price or account/credit price. For  example, the cash price for the item is R2000.00 whereas the account price is R3000.00 and must be  paid in instalments of R500.00 over a period of six months commencing from the 01st of June 2015.  When selling on account the instalment amounts per month, as well as the payment duration (3  months/ 6 months, etc.) should be fixed without any form of ambiguity. The purchaser should then  choose either the cash option or the credit option when finalizing the deal. Once he chooses one of  the two options, then provided that there is no further fluctuation of the agreed price and provided  also that there is other condition attached to the transaction that is contrary to Shar’iah, the  transaction will be in order.

As far as charging the purchaser extra when selling on instalments, the calculation method is left totally to the discretion of the seller (whether he gives a random amount or uses the current interest market rate as a yardstick to determine and calculate the credit amount), as long as the above  mentioned procedure is adhered to. The extra amount is included in the selling price thus the entire  amount of R3000.00 in our example is now regarded as the selling price of the item.