Can I sell an item more than its market value?

I import a specific type of chemical from a company. The company only sells its products to me in my country as I am the agent of the company.
Someone told me that if a good has a certain market price than one cannot charge more than that. Please correct me if I am wrong.
So my product has no market price, and it’s me who has to set the price. But there are other brands of the same chemical selling in my country with difference in qualities/formulation. Is it necessary for me to research on the pricing of other brands, look at their qualities and set a price likewise?
Example: There are 3 brands that sell the same chemical but different qualities. Now if my chemical is the lowest quality among all, is it necessary to keep the lowest price than other two?

In the name of Allah, the most Beneficent, the most Merciful.

Answer

It is one of the conditions of buying and selling that the object of sale and the price are known beyond dispute. For example, selling an item in exchange for its market value without determining what the market value is or to sell an item with an unidentified price will be considered impermissible. (See Badaius Sanai p.135 – p.148 v.5)

There is a difference between price and value of an item. Price is determined by the mutual agreement of the buyer and seller, whether it is more, less or equal to the objects value, whilst the value is its current market value. (Financial Transactions in Islamic Jurisprudence p.54 v.1)

The conclusion we can come to is that it is permissible to sell an item which may be more or less than its actual market value. As I explained above “price” is something determined by the two parties. If the buyer wants to pay more than the market value then that is allowed.

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham

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