What price must a seller declare when reselling an item on murabaha if the original price was later reduced or increased after the contract but before the buyer took possession?

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

Al-Mughni

Book of Sales

Book 12 · Issue 6 · Bab 5

Open in Qurani

Primary text

If the seller reduces some of the price from the buyer after the contract is binding, this reduction is considered a gift and is not valid as part of the cost price; thus, the seller must declare the original price. Similarly, if the price was adjusted during the option period (khiyar), it is attached to the contract, and the adjusted price must be declared. This is the position of Al-Shafi'i.

Supporting text

Abu Hanifa holds that a post-contract reduction in price attaches to the contract and must be declared in a murabaha sale. If the reduction occurred during the option period, both Al-Shafi'i and Abu Hanifa agree it attaches to the contract and must be declared.