Shaykh Abdul-Muhsin Al-Abbaad was asked:

Question:

“Nowadays, a man sells [a product] after having the receipt/invoice while the product is in the warehouse. Likewise, the product is sold and bought while it is still in the same warehouse. [So what is the ruling on that?]

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”. End translation. []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]

Translated by

Faisal Ibn Abdul Qaadir Ibn Hassan
Abu Sulaymaan