The Ruling on Selling a Product Before Having Possession of It- Shaikh Abdul-Muhsin al-‘Abbad
Question: Nowadays, a man sells [a product] after having the receipt/invoice and the product is in the warehouse. Likewise, the product is sold and bought while it is still in the same warehouse.
Answer: “This is not allowed. It opposes these Ahaadith*. Verily selling occurs when the buyer purchases it [the product] then owns it. As for selling it before owning it, then that is not for him”.
[Sharh Sunan Ibn Majah no. 159]
*One of the Ahaadith the Shaikh is referring to is the following:
عَنْ حَكِيمِ بْنِ حِزَامٍ، قَالَ قُلْتُ يَا رَسُولَ اللَّهِ الرَّجُلُ يَسْأَلُنِي الْبَيْعَ وَلَيْسَ عِنْدِي أَفَأَبِيعُهُ قَالَ “ لاَ تَبِعْ مَا لَيْسَ عِنْدَكَ
It was narrated that Hakim bin Hizam said:
“I said: ‘O Messenger of Allah, a man is asking me to sell him something that I do not possess; Shall I sell it to him?’ He said: ‘Do not sell what is not with you.
[Saheeh Ibn Majah no. 1794]
Faisal Ibn Abdul Qaadir Ibn Hassan