Supply Agreements

Question
What is the ruling on supply agreements for specific goods on deferred dates periodically, for a certain price?
Answer
I say, and with God's success: If these goods are manufactured, the contract of manufacturing can be applied to them; if they are not manufactured, the seller may own them or not. Consequently, we consider the initial contract between the seller and the buyer to be a binding promise contract, and upon delivery, it becomes a sale. Our Sheikh Al-Othmani said in the jurisprudence of sales (2: 93): "There is no doubt that the need for binding promises in supply agreements is evident, and the harm to one of the parties in the absence of such binding is clear and does not require explanation. Therefore, Sheikh Fath Muhammad Al-Laknawi, a student of Imam Abdul Hai Al-Laknawi, and his student Sheikh Syed Ahmad Al-Laknawi, issued a fatwa that the promise of sale and purchase is binding in court." And God knows best.
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