Pre-Order: Contemporary Commerce in an Islamic Perspective

In the modern era, trade continues to evolve with various innovations, including the pre-order (PO) system. In this system, buyers order and pay for goods that are not yet available, with an agreed delivery time in the future.

However, the emergence of pre-orders raises questions from an Islamic perspective. Is this system permitted? What are the terms and conditions? How does pre-ordering differ from traditional sales contracts?

Definition of Pre-Order

Pre-order (PO) is a purchasing system where the buyer orders and pays for goods before they are available. This system is widely used in the digital era, particularly for highly sought-after products such as gadgets, fashion, and more.

In Islam, buying and selling have clear rules and principles set out in the Qur’an and Hadith. Scholars discuss various types of sales contracts, including contemporary contracts that emerge alongside modern developments.

Evidence Regarding Pre-Orders

“The original principle in transactions is permissibility until evidence proves otherwise.”

— Jalal al-Din Abdurahman al-Suyuthi, al-Asybah wa al-Nazhair, (Beirut: Daar al-Fikr, 1983), p. 60.

So, what is the ruling on pre-orders in Islam? Is it permitted?

The Ruling on Pre-Orders in Islam

Understanding the ruling on pre-orders in Islam is important for Muslims to avoid riba (usury), gharar (uncertainty), and practices that do not comply with Sharia. Based on these considerations, some scholars permit pre-orders in Islam provided they meet the following Sharia principles:

1. Clear Contract (Akad): The pre-order transaction must have a clear agreement between the seller and the buyer. This contract must contain detailed information about the ordered goods, price, delivery time, and the consequences of delays or cancellations.

2. Specific and Clear Goods: The goods ordered in a pre-order must have clear specifications, such as type, colour, size, and so on. This is to avoid misunderstandings and disputes in the future.

3. Clear and Agreed Price: The price of the goods in a pre-order must be clearly determined and agreed upon by both parties before the contract is made. The seller may not unilaterally increase the price after the contract.

4. Clear Delivery Time: The delivery time for goods in a pre-order must be clearly established and agreed upon by both parties. The seller must honour the promise regarding this delivery time.

5. Clarity of Consequences: The consequences of delays or cancellations in a pre-order must be clearly regulated within the contract. This is to minimise the potential for future disputes.

Pre-order and Sales Contracts in Islam

The pre-order system shares similarities with several sales contracts in Islam, such as:

1. Ba’i Istisna’: The sale of goods that have not yet been manufactured, with agreed-upon specifications. In ba’i istisna’, the goods are produced after the contract, whereas in a pre-order, the goods are generally already existing and simply awaiting a time for distribution.

2. Ba’i Salam: The sale of goods that are not yet present with upfront payment, with agreed specifications and delivery times. In ba’i salam, payment is made at the beginning, whereas in a pre-order, payment can be made upfront or when the goods become available.

MUI Recommendations

The Indonesian Ulema Council (MUI), in its fatwa regarding Online Buying and Selling (MUI Fatwa Number 22/2014), provides several recommendations for pre-orders:

1. Sellers must ensure the availability of goods before opening a pre-order.

2. Sellers must provide clear and complete information about the goods, including specifications, descriptions, prices, and the pre-order duration.

3. Sellers must provide ease for buyers to cancel orders and receive refunds if the goods are unavailable or do not match what was ordered.

Pre-order is a form of contemporary buying and selling that is permitted in Islam as long as it meets Sharia principles. Both sellers and buyers must understand their rights and obligations in a pre-order contract to avoid misunderstandings and disputes. By understanding pre-orders from an Islamic perspective, it is hoped that Muslims can conduct transactions safely, lawfully, and in accordance with Sharia.