Difference between Dain and Qardh, Delayed payment, Immediate payment
Category:
Business Dealings & Money Matters
According to Madhhab:
Hanafi
Reference:
1440-304
Question:
1. What is the difference between Dain and Qardh?
2. If a person purchases a pen from a store and walks away with the intention of paying a little later, will this fall under the category of Dain or Qardh? In this case, no time has been fixed for payment of the goods. Is this transaction in order? If a purchaser buys the goods, but no arrangements have been made to pay in "terms", will this be considered a cash transaction, except that the buyer is delaying payment?
3. If a person buys goods in fixed instalments, (the time is fixed as well as the instalments), is this considered Dain or Qardh?
4. Assuming the answer in scenario #2 is that the purchaser was required to fix the payments and terms, yet he did not do so, what is the ruling of the transaction and how should it be rectified?
Answer:
1. The difference between a Qardh and a Dayn is that Dayn is more comprehensive while Qardh is more specific. Hereunder are their definitions:
Qardh: Loan of Mithli articles (such as money) with the stipulation to return its like in the future.
Dayn: Money etc. that one is liable to pay back to another. For example: the price one has to pay upon purchasing an item or the amount one has to pay upon destroying an item belonging to someone or a loan that has to be repaid. (Shaami Vol. 5 Pg. 161)
2. If the seller and purchaser both agree on a price and thereafter the purchaser walks out with the item without paying with the consent and the happiness of the store owner that the payment will be made on a later stage then such a transaction will be in order according to the Fuqaha (jurists). The Thaman (price) will be regarded to be a Dayn on the Mushtari (purchaser). Not specifying the time for payment in this scenario will not affect the validity of this transaction because allowing the purchaser to pay whenever he wishes after the transaction is complete is valid. However, if a transaction from the beginning was a credit transaction i.e. the item was sold on condition that the purchaser will pay later, the time of payment has to specified for the transaction to be considered valid. If the time was not fixed, such a transaction will be Faasid (invalid). (Sharhul Majallah - Muhammed Khalid Ataasi Vol. 2 Pg. 167)
3. It will be considered a Dayn. (Shaami Vol. 5 Pg. 157)
4. In scenario 2, if the transaction was a credit transaction and the date for the payment was not fixed, it will be considered an invalid transaction. If a transaction is Faasid, then it will be necessary for the buyer and seller to nullify the transaction even if the buyer took possession of the item. The purchaser will have to return the pen to the store. However, as mentioned before, if after the transaction was complete, the store owner from his side allows the purchaser to pay on a later stage without fixing the time of payment, the transaction will be in order and not specifying the date of payment will not affect the validity of the transaction. (Al-Hidaayah Vol. 3 Pg. 51)
AND ALLAH TA'AALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST
ANSWERED BY: Abdullah Badat
CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B.
Islamic Date:5 Jumaadal Ukhra 1440 - English Date: 11 February 2019