CHAPTER EIGHT
ON CASH & CREDIT
If one sells some goods and does not set a condition about the payment to be made sometime later the payment becomes due after the contract is concluded, thus, the seller can demand payment and he must accept payment if the buyer pays and the seller cannot deny accepting and receiving payment.
CR (189) If it is stipulated that the payment will become due later on then the transaction is called 'nisyah' Credit and the buyer does not have to pay anything before payment is due, even if the seller may demand payment, however, if the buyer pays before payment is due the seller must accept it, unless there is some indication about the delayed payment being a right in favor of the seller.
CR (190) It is necessary to determine when exactly payment becomes due. There must be no ambiguity about it. If for example, the time for payment becomes due, is said to be when it is harvest time etc. the deal is void and invalid.
CR (191) If a computation of the exact duration needs a lot of calculating work like certain calendars that require such work, apparently, the contract is not valid, if the time for the payment to become due is like the beginning of next lunar month while the current month's beginning is not certain (as it mostly happens with lunar calendar) or that whether the current month will be of 30 days or 29 days, according to a more clear reason the contract is valid.
CR (192) If one says I sell this commodity for 'x' amount of money if paid in cash and for a higher amount if paid later and the buyer accepts it, according to the well known view such contract is void and this view is more clear.
CR (193) It is not lawful to postpone a due payment, even all forms of loans duly payable, in exchange for a higher amount like postponing a debt of ten dollars already due until one year later to be paid $20. The same rule applies to extension of more years with an increase of the payable amount. The reverse of the above case is lawful, i.e. paying half of the amount, payable after a year, in cash to waive the deducted amount in favor of the other party or in exchange for something, provided, the commodity is not of the kind sold by weight or measurement.
CR (194) It is lawful to sell a higher amount, payable one year later, for a lesser amount in cash, if the commodity is not of the kind exchanged by weight or measurement in which case it is not lawful because of RIBA (unlawful interest). It is not lawful to pay some of the debt payable after a year, in cash to extend one more year's time for the payment of the rest.
CR (195) If one buys some commodities to be paid for after a certain time, it is lawful to buy such deal before the time of payment or after in exchange for the same kind of goods or other commodities equal to it, more than it or less, regardless, the second transaction is cash transaction or the payment is to be made later. If in the first transaction either party stipulates that later on the commodity be sold to him or bought from him for a higher amount than what he has paid or received in the first transaction, according to the well known view the contract is void and this view is more clear.