Question Summary:
I am head of Purchase Deptt.in a private company.We had an agreement through E-mail with a company for the purchase of certain material at $500/ton.about 2-3 months ago.

Question Detail:

I am head of Purchase Deptt.in a private company.We had an agreement through E-mail with a company for the purchase of certain material at $500/ton.about 2-3 months ago. In the mean time ,the prices have gone drastically low in the world market as about $400 / ton.

Our management ,thus asked me to decline from the prvious order and go for another supplier who has offered the material on the lower price.
Plz. let us know ,how it is according to Shariat.I personally feel it wrong.If my management insists ,what should I do?

Answer :

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh
 
There could be two possible situations:
1) a mere promise was made to purchase the items.
2) The deal has already been concluded.
According to our understanding of your query, the supply company and you had agreed 2-3 months ago that goods will be supplied by the company to you at a certain price and the goods have not been purchased as yet. Now you wish to cancel this agreement because the material can be obtained cheaper elsewhere.
This is a promise which is only morally binding. You may inform the company that you wish to cancel this agreement. Thereafter you may purchase the material from an alternate supplier. 
If the deal has already been concluded with the first supplier via email or otherwise, it will be binding on you to purchase the goods even though it may be expensive. However, if the company agrees to refund you then this is their mere kindness towards you.
 
And Allah Ta'ala Knows Best


Wassalamu Alaykum


Ml. Rayhaan Docrat
Student Darul Iftaa
 
Checked and Approved by:
 
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah