Current Legal Issues

Sale of Goods Whose Owners do not Come Forward to Take Delivery of them

It may happen that the importer neither take delivery of the goods nor pay the bank the price thereof, after the bank exhausts all means of notifying and warning the buyer to do so. In this case the bank can sell the goods to retrieve the amount it owes from the sale proceeds.

(12) It is permissible for the bank, in this case, to sell the goods; it is also permissible for the others to buy the goods.

This is because the bank is acting as an agent for the owners of the goods in selling it when they defaulted in repaying whatever cost the bank incurred in the process. This is done in implementation of either the explicit or implicit condition stipulated in such deals. If it was lawful to sell, it is [by the same standard] lawful to buy.