Question
The institution agreed with the trader that the institution's profit is 40% (capital 10,000 dinars) contract clause: * The trader is required to provide financial statements once a week. (How much was sold and how much remains of the offers). Next clause: * In case of violating the previous clause of this contract, the trader will pay a fine of 2% increase on the profit (which will make the institution's profit 42%), and this fine will be repeated if the violation by the trader recurs. Is it permissible to impose this condition? If it is not permissible to impose a common part, is it permissible to impose a specific amount as a fine? The institution is concerned about non-compliance by the trader.
Answer
I say, and with God's success: this is an usurious condition in the contract, and the company should seek another means to encourage him to comply; because penalty clauses in debts are considered usury, and God knows best.