Tawliyah transaction (reselling at cost price)

Praise be to Allah.

The tawliyah transaction (reselling at cost price) is a transaction that is based on trust. What is meant is that a man buys a product for a known price, then sells that product to another man for the same price as that for which he bought it.

So if someone says “I will sell it to you at cost price,” then he should not sell it for more than the price for which he bought it, because this word tawliyah (selling at cost price) implies giving it for the same price as that for which he bought it.

Ibn Qudaamah (may Allah have mercy on him) said in al-Mughni (8/341):

The tawliyah transaction (reselling at cost price) means selling an item for the same price as that for which one bought it, no less and no more. End quote.

Shaykh al-Islam Ibn Taymiyah said:

The tawliyah transaction (reselling at cost price) means that the purchaser gives the item to someone else for the same price as that for which he bought it." (Majmoo‘ al-Fataawa  28/97).

And Allah knows best.