Guaranteed Low Prices and Interest: Difference between revisions
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→Prepayments to Reduce Cost
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# If the buyer's intention is purely to buy the item on credit in order to sell it immediately for a cheaper value that is considered a prohibited since it as though the cheaper price is stipulated as the value of the loan and yet he agreed to repay a higher amount.<ref>The Ritva b"m 65a cited by Bedek Habayit 173 writes that if someone purchases a commodity on credit it is permitted if the price isn't clear. However, if the buyer immediately sells it for less it shows that the loan obligated him to pay more than the value of the item and is interest. Chatom Sofer YD 137 follows the Ritva and writes that one can't bring a proof from Shulchan Aruch 163:3 or Taz 163:6 who imply otherwise since they didn't have the Ritva.</ref> | # If the buyer's intention is purely to buy the item on credit in order to sell it immediately for a cheaper value that is considered a prohibited since it as though the cheaper price is stipulated as the value of the loan and yet he agreed to repay a higher amount.<ref>The Ritva b"m 65a cited by Bedek Habayit 173 writes that if someone purchases a commodity on credit it is permitted if the price isn't clear. However, if the buyer immediately sells it for less it shows that the loan obligated him to pay more than the value of the item and is interest. Chatom Sofer YD 137 follows the Ritva and writes that one can't bring a proof from Shulchan Aruch 163:3 or Taz 163:6 who imply otherwise since they didn't have the Ritva.</ref> | ||
====Prepayments to Reduce Cost==== | ====Prepayments to Reduce Cost==== | ||
# A buyer and seller agreed upon a price for buying on credit and the sale was validated with a complete and formal acquisition. Then they renegotiate that if the buyer pays right away he doesn't have to pay as much that is permitted.<Ref>Shulchan Aruch 173:3</ref> | # A buyer and seller agreed upon a price for buying on credit and the sale was validated with a complete and formal acquisition. Then they renegotiate that if the buyer pays right away he doesn't have to pay as much that is permitted.<Ref>Shulchan Aruch Y.D. 173:3</ref> | ||
====Benefits of the Seller==== | |||
# If a seller sells a product on credit he can't continue to use the product after he sold it. Doing so would be a form of interest since he sold the product he is entitled to be paid, therefore, letting the buyer pay later is a loan and the seller using the buyer's product is interest.<ref>Rama 174:1</ref> | |||
===Payments in Advance=== | ===Payments in Advance=== | ||
