The company I work for delegated to me the task of selling our excess stock within a price range of 10 to 12 dollars a unit. Through my own efforts and on my own time, I was able to find buyers willing to pay 17 dollars a unit. Consequently, I purchased the company’s stock myself at 12 dollars a unit – the high end of the company’s target price range – and then resold it on my own for a profit of 5 dollars a unit. Is this permissible for me to do?
Sheikh Hamad al-Haydarî, professor at al-Imâm University
As long as the company sets the price that it wants for those items, then there is nothing wrong with you, as the sales agent, purchasing the items from the company at that price. This is because your purchasing these items at the price being asked brings no harm to the company’s interests.
In the event that the company sets a range of prices, then if you as the agent want to but the items, you will be obliged to purchase them at the highest price being asked. Otherwise, there would be a conflict of interest between your working as the company’s agent and your acting on behalf of your own benefit. As the company’s appointed agent, you must act in the interests of the company.
Islamic legal scholars have determined that it is permissible for a sales agent to purchase the items for himself under the condition that the seller has set a price for those items. This condition is necessary to avoid any conflict of interest.
Once you purchase the items, then you are free to resell them at a higher price.
And Allah knows best.
Source: Islam Today
-- Al Arabiya Digital