Summary on Penalty for Late Payment
This question and answer were automatically translated using our trained AI and have not yet been reviewed by a qualified rabbi. Please treat this translation with caution.
go to original →
Question
Is it permissible to agree that a delay in payment will incur a financial penalty?
Answer
It is forbidden for a lender to stipulate with the borrower that if he does not repay the loan on time, he will pay a predetermined one-time penalty. However, in a debt arising from a sale or rental, if it is agreed in advance that a fixed penalty will be paid for late payment, it is permissible. It is permissible to agree on a one-time penalty in a sale transaction, such as when the seller stipulates with the buyer that if he does not pay at the agreed time, he will pay a one-time penalty.
Comments
Have an additional question on this topic or need clarification? Leave your comment below. (Please note that the comment will not be published but will be sent directly to the answering Rabbi for review and a private response)
Become our patrners in supporting and spreading the Torah
Help us answer more questions faster and better
Join the mission