Is it permissible to sell an item on a cost-plus basis (Murabaha) if the purchase price was deferred?

Chapter on Selling the Musarrah (Animal with milk retained in udder)

Al-Mughni

Book of Sales

Book 12 · Issue 1 · Bab 5

Open in Qurani

Primary text

When an item is purchased with a deferred price, it is impermissible to sell it via Murabaha until the deferred nature of the purchase is explicitly stated. This is the position held by Abu Hanifa. The rationale is that the seller is suspected of favoritism (muhabah) when dealing with close relatives or those whose testimony is not accepted, thus necessitating disclosure regarding the nature of the purchase.

Supporting text

Al-Shafi'i, Abu Yusuf, and Muhammad permit the Murabaha sale without explicit disclosure because the seller has reported a valid purchase contract, similar to purchasing from a non-relative.