Are laybyes permissible? If yes, what are the rules?

Answer

Laybyes are permissible. When a deposit is paid by a customer, he/she becomes the owner of the item. The trader retains the item in his custody until full payment is received.

After a specified stipulated time, if the customer does not collect his parcel, the trader has the right to open and sell it. The initial deposit, plus whatever other payments have been paid as well as any profit made on reselling the item have to be refunded to the customer.

If the item has been sold after the stipulated time, and if the customer can not be traced, the money has to be held in trust until there is no hope of finding the customer. The money should then be given as Sadqah. However, if after having given the money to charity, the customer does turn up, then the trader has to pay him, and he (the trader) will receive the reward of the Sadqah.