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Lesson 77

Trade (2)

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Main Points
 

·    The Prophet (peace be upon him) prevented the following:

a) Reselling the commodity before delivery

b) The sale of a delivered article over another buyer

c) An-Najsh sale that is, bidding to raise the commodity price without intending to buy but to deceive others

d) The sale of something prohibited or filthy

e) A transaction of whatever involves chance or risk, in which its features have not been determined

f) Double sale

g) Paying nonrefundable deposits in which the seller keeps the down payment even without sale

h) The sale of something not owned by the seller at the time of the sale

i) Sales involving debt

j) `Inah sale, that is, sale on credit in which the seller buys what he has sold to a term, before its delivery, with a lower price

k) Inhabitant's sale in favor of a foreigner

l) Buying from passengers (similar to smuggling)

m) Exception sale, that is, to sell the article, excepting something unknown.[10]

·       Buying in advance: It is permissible to sell on credit to a stated term for a present price, as the buyer will receive the commodity at the end of that term (forward buying)

·       It is permissible to sell with deferment or installments of the price against an increase from cash price (credit sale).[11]

Preemption

·       Preemption is to buy one's partner share which he had sold to a third party for the same price.

·       Preemption is lawful, unless the preemptor did not attend the sale, or had no idea about it at the time and did not ask for preemption. It is not allowed for him to re-sell.

·       There is no preemption for the movable items like clothing and cattle.[12]


 

Prohibited kinds of sale:

Reselling

The Prophet (peace be upon him) said:

“He who buys foodstuff should not sell it till he is satisfied with the measure with which he has bought it.”
 (Reported by Al-Bukhari and Muslim)

Sale over another buyer

He (peace be upon him) also said:

“Do not enter into commercial transaction when others have entered into that (transaction).” (Reported by Al-Bukhari and Muslim)

Najsh Sale

The Messenger of Allah (peace be upon him) said:

“And Do not practice Najsh (i.e. Do not offer a high price for a thing which you do not want to buy, in order to deceive the people).”
 (Reported by Al-Bukhari and Muslim)

Selling Prohibited items

The Prophet (peace be upon him) said:

“Allah and His Messenger made illegal the trade of alcohol, dead animals, pigs, and idols.” (Reported by Al-Bukhari and Muslim)

Ambigious sales

Anas Ibn Malik (may Allah be pleased with him) narrated:

“Allah’s Messenger (peace be upon him) forbade the sale of fruits until these are mellow. They (the Companions of Anas) said: What is meant by ‘mellow’? He said: It implies that they became red. He (Anas) said: When Allah hinders the growth of fruits, (then) what for the wealth of your brother would become permissible for you?”
(Reported by Al-Bukhari and Muslim)

Abu Hurayrah (may Allah be pleased with him) narrated:

“Two kinds of sale are forbidden: Mulamasah and Munabadhah.” (These two kinds of sale used to be practiced in the days of Pre-Islamic period of ignorance; Mulamasah means that two persons exchange their dresses without looking at these clothes, being satisfied with mere touch. Munabadhah indicates that a person says to another: Give me what you have in return for what I have (as a form of sale). No one of them knows the reality of what the other has). (Reported by Al-Bukhari)

Double sale

The Prophet (peace be upon him) said:

“If anyone makes two transactions combined in one bargain, he should have the lesser of the two or it will involve usury.”
 (Reported by Abu Dawud)

non-Refundable deposit

`Abdullah Ibn `Amr Ibn Al-`As (may Allah be pleased with him) narrated:

“The Messenger of Allah (peace be upon him) forbade the type of transactions in which earnest money was paid.” Malik said: This means, as we think- Allah better knows- that a man buys a slave or hires an animal, and he says: I give you a dinar on condition that I give up the transaction or hire, what I gave you is yours. (Reported by Malik)

`inah sale

The Messenger of Allah (peace be upon him) said:

“If you enter into the `Inah transaction, hold the tails of oxen, are pleased with agriculture, and give up conducting jihad (struggle in the way of Allah), Allah will make disgrace prevail over you, and will not withdraw it until you return to your original religion.” (Reported by Abu Dawud)

Selling to nomads

Anas Ibn Malik (may Allah be pleased with him) narrated:

“The Messenger of Allah (peace be upon him) has forbidden that a person in a city should sell for a man of the desert on commission even if he is his real brother.” (Reported by Al-Bukhari and Muslim)

Smuggling

Allah’s Messenger (peace be upon him) said:

“The caravans carrying merchandise should not be met on the way to purchase from them. A man living in urban territories should not sell for a man of living in a desert area.”
(Reported by Al-Bukhari and Muslim)

Abu Hurayrah (may Allah be pleased with him) narrated:

“The Prophet allowed the sale of the dates of the `Ariyah for ready dates by estimating the former which should be estimated as less than five Awsuq or five Awsuq.” (Reported by Al-Bukhari)

Exception sale

Rafi` Ibn Khadij (may Allah be pleased with him) narrated:

“The Messenger of Allah (peace be upon him) forbade Muhaqalah (selling plants in their spikes), Muzabanah (selling the (unknown) truits of an orchard in exchange of a known amount), and Thunayya (sale with exception), unless it is well-defined.”
 (Reported by An-Nasa’i, Abu Dawud, and Ibn Majah)

Buying in advance:

Ibn `Abbas (may Allah be pleased with him) narrated:

“Allah’s Messenger came to Madinah and the people used to pay in advance the price of fruits to be delivered within one or two years. (The sub-narrator is in doubt whether it was one to two years or two to three years.) The Prophet said: Whoever pays money in advance for dates (to be delivered later) should pay it for known specified weight and measure (of the dates to a known term).” (Reported by Al-Bukhari and Muslim)

Preemption:

Jabir Ibn `Abdullah (may Allah be pleased with them) narrated:

“The Messenger of Allah (peace be upon him) decreed preemption in every joint ownership that is not divided. It may be a dwelling or a garden. It is not lawful for him (for the partner) to sell that until his partner gives his consent. He (the partner) is entitled to buy it when he desires and he can abandon it if he so likes. And if he (the one partner) sells it without getting the consent of the (other partner), he has the greatest right to it.” (Reported by Muslim and An-Nasa’i)