A vendor imposed a condition that a prospective purchaser has to pay him some compensation if he does not buy

They imposed a condition that if he did not buy the product from them, he would have to pay them compensation if they sold it at a loss. Is this an invalid condition? For example, he came and said, “I want to buy such and such a product” and they said, “We will bring it from America and if you do not buy it, and we sell it to someone else at a loss, you will have to compensate us because you broke your promise.” Is this an invalid condition?

Praise be to Allaah.

We put this question to Shaykh Muhammad ibn Saalih al-‘Uthaymeen, may Allaah preserve him, who answered as follows:

Yes, this is an invalid condition.

And Allâh knows best. Continue reading