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Cancellation fee for cancelling a lay-by

Answered according to Hanafi Fiqh by TheMufti.com

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


A. 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.

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

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