Category: the book of sales Transactions

The ruling on whoever buys Merchandise and sells it while it is still in its Place

Question :

Some merchants buy merchandise, then they do not receive it nor do they even see it. Rather, they take a document of sale, they hand over the price and they leave it in the storage facilities of the first merchant whom they bought it from. Then, the second merchant sells it to someone else while it is in the storage facilities of the first merchant. So, what is the ruling on that?

Answer:

It is not permissible for the buyer to sell this merchandise as long as it remains present in the possession of the seller, until the buyer receives it and transfers it to his house or his store. This is due to what is confirmed from the Prophet from the authentic Hadiths concerning this. Among them is his statement:
"It is not permissible to make a loan and a sale (in one transaction), nor selling what you do not have."

This was recorded by Imam Ahmad and the Sunan compilers with an authentic chain of narration.

This is also due to his statement to Hakeem bin Hizam:
"Do not sell what you do not have."

This was recorded by the Five except for Abu Dawud, with a good chain of narration. It is also due to what has been confirmed from Zaid bin Thabit from the Prophet that he prohibited that products be sold where they are purchased until the merchants take them to their places. This was recorded by Ahmad and Abu Dawud, and it was graded authentic by Ibn Hibban and Al-Hakim.

Likewise, whoever buys it from the buyer, he (the first buyer) cannot sell it until he moves it to his house or to another place from the store (where he bought it). This is due to the mentioned Hadiths and other Hadiths that have been reported with the same meaning. And Allâh is the Giver of success.

Source:
Ash-Shaykh Ibn Baz
Fatawa Islamiyah, Vol. 4 Pages 440-441