Is Advance Payment in a Web Development Contract Permissible?
Shafi'i Fiqh
Answered by Shaykh Muhammad Carr
Question
I entered into a verbal agreement with a company to develop a website for them. They provided me with a laptop, and I worked from home for most of the time.
The payment was structured as follows: one third was paid in advance, with the remainder due upon completion.
Does this mean that my income is impermissible under all schools of law except the Hanafi school, given that the contract of istisna’ is recognized only within that school?
And if I were to adopt the Hanafi school, would my income and the use of the laptop become permissible, and would the previous transaction be considered valid?
Answer
In the Name of Allah, the Most Merciful and Compassionate.
The website development contract, as described, and the income derived therefrom are permissible. The laptop is likewise permissible.
This is based on the principles governing a specific service contract (ijarah al-‘ayn), that is, the engagement of a specific person to fulfill a specific task.
In such contracts, remuneration may be paid upfront or upon completion of the work.
As the scholars state: ‘Taking possession of the remuneration is not a condition at the point of contracting when the agreement is a specific service contract.’ [Dimyati, I’anat al-Talibin]
Where the service is defined by the production of work rather than time spent, there is no requirement to specify a timeframe. The scope of work is determined by either an agreed hourly rate or a clear description of the deliverable. [Ibid]
While you would be entirely justified in adopting the Hanafi position on this matter, your own school regards the transaction as permissible. Moreover, the removal of hardship is a well-established objective of the Shariah [Suyuti, Ashbah]
For future peace of mind, ensure that your contracts are Sharia-compliant before entering into them. If there is any uncertainty, invoke a right of cancellation within the contract, which allows you to withdraw without being in breach of your contractual commitment.
I pray this is of benefit, and that Allah guides us all to what is true and pleasing to Him.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani
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Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
