Fiqh of Trade 2 - Prohibited Transactions

بِسْم الله الرحمن الرحيم

Prohibited Transactions

1) Trade is allowed as long as it doesn't cause harm to others. 

2) It is impermissible for Muslims on whom صلاة الجمعة is obligatory, to deal in any type of trade after the second Adhan is called. In [62:9]:

The first Athan was introduced by Uthmaan رضي الله عنه, when he saw that the people were late to Jum'ah. So it was first implemented in order to warn the people that صلاة الجمعة was going to start soon.

Allah has made trade permissible for His servants, as long as it doesn't cause them to miss what is more beneficial. Trade is important, but there are things which are far more important - like obligatory acts of worship. 

3) It is impermissible to deal with trade whenever the time for prayer comes in general. In [24:37-38]:

A characteristic of the believer is that his heart is attached to the Masjid.

عَنْ أَبِي هُرَيْرَةَ عَنْ النَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ قَالَ سَبْعَةٌ يُظِلُّهُمْ اللَّهُ فِي ظِلِّهِ يَوْمَ لَا ظِلَّ إِلَّا ظِلُّهُ..... رَجُلٌ قَلْبُهُ مُعَلَّقٌ فِي الْمَسَاجِدِ 

Abu Huraira reported: The Prophet ﷺ said, “There are seven persons whom Allah will shade on a Day when there is no shade but His.......(One of them is:) A man whose heart is attached to the mosques"

He may be outside somewhere, but his heart is always thinking of the Masjid, he plans to go there, etc. 

Some of us walk in the Masjid and our hearts are still at home, we walk in the Masjid and our hearts are with our businesses, with the TV, with sports. We know how weak we are. At least be sincere and have some pity on yourself, and try your best to concentrate while you're in the Masjid. Once you do that, you'll be able to achieve the level of the man whose heart is attached to the Masjid.

Allah said in [23:99-100]:

Their hearts were never with the Masjid, they spent their lives displeasing Allah, they didn't enter the fold of believers - when their time of death comes, that's the time they'll want to go back. Not because they have a deal to finish, or to bring up their children, or to increase their money. Why? Just so that they can do something of righteousness.

The peoples whose hearts are attached to the Masjid plan everything around it. They plan their shopping around the time of prayer. 

4) It is illegal to sell anything that can be used for disobedience of Allah and sin.

E.g. You can't sell certain fruit juice to someone who you know will use it to make intoxicants.

Allah said in [5:2]:

"... ۘ وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ ۚ وَاتَّقُوا اللَّهَ ..."

Similarly it is illegal to sell weapons, ammunition, and the like at the time of dissension, war, and unsettlement amongst Muslims, lest they use it to kill one another.

In regards to this, Ibn AlQayyim said, "All legal proofs demonstrate that the validity, legality, and permissibility of a sale are also linked to intention and usage. For example, one is prohibited from selling someone a weapon, if one knows that he would use it for killing a Muslim, as this is considered cooperation in sin and aggression.

However, if a Muslim sells a weapon to someone who fights in the cause of Allah, it is considered (for the seller) a sign of obedience and devotion to Allah. 

On the other hand, it is impermissible to sell weapons to those who fight the Muslims, or those who use them for highway robbery, as it is regarded as cooperation in sin" 

5) It is not permissible to cancel the sales of one another.

E.g. A Muslim bought something for 10 dollars. You can't go to the buyer and say you can give it for 9, or something even better than that for 10. 

If the contract hasn't been done and the person is just shopping around, you have all right to do that. The problem occurs when the buyer bought it, and you try to cancel that transaction, so that you may sell the same merchandise.

It's also not allowed to propose to a girl when you know someone else has already proposed, and she accepted it.

It's also not allowed for the woman to ask her husband to divorce his co-wife, or to offer to marry a man only if he first divorces his wife.

6) The Prophet ﷺ said, "The town dweller should not trade on behalf of the desert dweller" [Agreed upon]

We are not Islamically allowed to go and trade on behalf of the person if you want to give him your professional hand, or as a hired hand. But if the person comes and asks for your support, it's different.

Ibn Abbas, commenting on the previous Hadith, said it means that the town dweller should not act as a broker to the desert dweller.

The Prophet ﷺ said, "Leave the people alone, Allah will give them provision from one another" [Muslim]

Don't go and chip in because they may feel like you cheated them, or the price of the commodity may go up, etc. 

7) بيع العينة

This is when a seller sells a commodity to the buyer on credit, and buys it back at the same time for a lower price.

E.g. Muhammed sells something to Ahmed for 20,000 dollars on credit, and buys it back from Ahmed for 15,000 dollars in cash.

This is a form of interest and is a kind of fraud.

If, for example, you go and buy a car which costs you 50,000 Riyals on credit. After you own the car, because you need cash, you may take it and sell it in the market, and you won't get as much money. Then with the cash, you do what you want, then on credit basis, you keep paying back the credit. Some scholars have differed here, but it looks like this is Halal in this case, because there's no previous agreement and you're free to do what you want with your car. 

With العينة you're dealing with the same businessman or dealer; so the dealer is basically giving you a loan of 15,000 and getting back 20,000 in return. And this is Riba.

The Prophet ﷺ said:

إِذَا تَبَايَعْتُمْ بِالْعِينَةِ ، وَأَخَذْتُمْ أَذْنَابَ الْبَقَرِ ، وَرَضِيتُمْ بِالزَّرْعِ ، وَتَرَكْتُمْ الْجِهَادَ ، سَلَّطَ اللَّهُ عَلَيْكُمْ ذُلًّا لَا يَنْزِعُهُ حَتَّى تَرْجِعُوا إِلَى دِينِكُمْ

This doesn't mean it's حرام to be a farmer. Abu Bakr was a farmer, the Ansari's were farmers. Allah said in [28:77]:

There was a companion of the Prophet ﷺ who cultivated his garden next to the property of an orphan. The orphan claimed that a specific palm tree was on his property and therefore belonged to him. The companion rejected the claim, so the orphan boy went to the Messenger of Allah ﷺ to complain.  

The Messenger of Allah ﷺ measured the two gardens and found that the palm tree did indeed belong to the companion. The orphan erupted crying. Seeing this, the Prophet ﷺ asked the companion, “Would you give him the palm tree and for you is a palm tree in Jannah?” However, the companion in his disbelief that an orphan would complain to the Prophet ﷺ, missed the opportunity and went away angry.

But someone else saw the opportunity – Abu Darda. Ibn Abi Hatim recorded that `Abdullah bin Mas`ud said, “When this Ayah,

[مَّن ذَا الَّذِى يُقْرِضُ اللَّهَ قَرْضًا حَسَنًا فَيُضَاعِفَهُ لَهُ]

(Who is he that will lend Allah handsome loan: then (Allah) will increase it manifold to his credit (in repaying),) was revealed,

Abu Ad-Dahdah Al-Ansari said, `O Allah’s Messenger! Does Allah ask us for a loan‘

The Prophet said,

«نَعَمْ، يَاأَبَا الدَّحْدَاح» (Yes, O Abu Ad-Dahdah.)

He said, `Give me your hand, O Allah’s Messenger,’ and the Prophet placed his hand in his hand.

Abu Ad-Dahdah said, `Verily, I have given my garden as a loan to my Lord.’ He had a garden that contained six hundred date trees; his wife and children were living in that garden too. Abu Ad-Dahdah went to his wife and called her, `Umm Ad-Dahdah!’ She said, `Here I am.’ He said, `Leave the garden, because I have given it as a loan to my Lord, the Exalted and Most Honored.’ She said, `That is a successful trade, O Abu Ad-Dahdah!‘ She then transferred her goods and children. The Messenger of Allah said,

«كَمْ مِنْ عَذْقٍ رَدَاحٍ فِي الْجَنَّةِ لِأَبِي الدَّحْدَاح»

(How plentiful are the sweet date clusters that Abu Ad-Dahdah has in Paradise!)” In another narration, the Prophet said,

«رُبَّ نَخْلَةٍ مُدَلَّاةٍ، عُرُوقُهَا دُرٌّ وَيَاقُوتٌ، لِأَبِي الدَّحْدَاحِ فِي الْجَنَّة»

(How many a date tree that has lowered down its clusters, which are full of pearls and gems in Paradise for Abu Ad-Dahdah!)

Tafsir ibn Kathir – The Encouragement to make a Handsome Loan in the Cause ofAllah

The Prophet ﷺ said:

إِنَّ الدُّنْيَا خَضِرَةٌ حُلْوَةٌ وَإِنَّ اللَّهَ مُسْتَخْلِفُكُمْ فِيهَا فَنَاظِرٌ كَيْفَ تَعْمَلُونَ أَلاَ فَاتَّقُوا الدُّنْيَا وَاتَّقُوا النِّسَاءَ

“This world is fresh and sweet, and Allah will make your successive generations therein, so look at what you do and beware of (the temptations of) this world and beware of (the temptations of) women.”

So the meaning of the Hadith isn't that farming is Haraam, but that if it makes you forget the rights of Allah on you, and make you give up Jihad, Allah will make disgrace prevail upon you. 

And the Prophet ﷺ said:

Al-Albani mentioned that this Hadith is weak, but as far as the meaning is concerned, it's correct, and we find it happening nowadays.