Can a fee be charged for the cancellation of a lay-by?

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Question and Answer:

Assalamualaikum Respected Mufti. Kindly advise as to whether a fee can be charged upon a cancellation of lay-by by a customer. Jazakalla. Your brother in Islam

(Question published as received)

In the enquired case, if the cancellation of the lay-by involved actual work/labour, such as transporting the item back to the warehouse etc., then actual costs incurred may be charged. If there are no costs incurred to the seller, it will not be permissible for him to charge a fee.

And Allah Ta’ala Knows Best

Mufti Taahir Hansa

(The answer hereby given is specifically based on the question asked and should be read together with the question asked. Islamic rulings on this Q&A newsletter are answered in accordance to the Hanafi Fiqh unless otherwise stated.)