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Lesson 2 of 1530 min

Rules of Sales

🏪 Rules of Sale — The Science of Prophetic Commerce

📖 Opening Scene: At the Madinah Market

The market of Madinah... The sun sends its golden rays upon the sellers and buyers...

A man displays his merchandise and swears: By Allah, I bought it for such and such price!

The Prophet ﷺ passes by and hears him... He stops and says:

The Prophet ﷺ: "Swearing sells the merchandise, but erases the blessing!"

(Unanimously agreed upon)

The seller falls silent... and the merchants look at each other...

Then the Prophet ﷺ says:

The Prophet ﷺ: "The two parties have the option as long as they haven't parted. If they are truthful and transparent, their transaction will be blessed. If they conceal and lie, the blessing of their transaction will be erased."

(Unanimously agreed upon)

Thus the Prophet ﷺ taught his nation that trade is worship... and that honesty is its true capital!

This science that the Companions learned is what you will learn in this lesson.


📖 Definition of Sale

Linguistically

Sale (bay'): exchanging one thing for another, or giving a compensation and receiving an equivalent.

Technically

📜 Jurists' Definition

The exchange of property for property in a specific manner, or transferring ownership of a financial asset for compensation in a lawful way.


🌟 The Legitimacy of Sale

From the Quran

📜 The Verse of Permitting Sale

Allah تعالى said:

﴿Allah has permitted sale and forbidden usury﴾

[Al-Baqarah: 275]

📜 The Verse of Mutual Consent

Allah تعالى said:

﴿O you who believe! Do not devour your wealth among yourselves unjustly, except through trade by mutual consent﴾

[An-Nisa: 29]

From the Sunnah

📜 The Best Earning

The Prophet ﷺ was asked: Which earning is best? He said:

"The work of a man with his own hands, and every honest sale."

(Reported by Ahmad and al-Hakim)

📜 The Rank of the Honest Merchant

The Prophet ﷺ said:

"The truthful, trustworthy merchant will be with the prophets, the truthful, and the martyrs."

(Reported by at-Tirmidhi)

Consensus

Muslims are unanimous on the permissibility of sale in general; disagreement exists only on certain types and details.


💡 The Wisdom Behind the Legitimacy of Sale

🌳

🎯 Why was sale legislated?

Cooperation among people
Enable exchange

What you have may be needed by others

Facilitate living

Meeting needs

Develop wealth

Encouraging work & trade


🏛️ Pillars of Sale

According to the Majority (Malikis, Shafi'is, and Hanbalis)

🌳

📝 The Three Pillars of Sale

The Contracting Parties

Seller & Buyer

The Formula

Offer and Acceptance

The Subject Matter

Goods & Price

According to the Hanafis

The pillar according to them is only the formula (offer and acceptance), the rest are conditions.

PillarDefinitionExample
The contracting partiesThe seller and buyerZayd sells to 'Amr
The formulaOffer and acceptance"I sold" and "I bought"
The subject matterThe goods and priceThe car for 50,000

📋 Conditions for the Contracting Parties

ConditionExplanationExample
SanityThe sale of an insane person is void
DiscernmentA discerning child can sell with guardian's permission10-year-old buying candy
MaturityFor major transactionsReal estate sale
Free willThe sale of one coerced is void

📦 Types of Legitimate Sales

🔍 Every sale has its wisdom...

In the Muslim marketplace, sales vary to meet people's different needs...

1. Absolute Sale (Bargaining)

🔄

💬 Bargaining

1

Seller doesn't reveal purchase price

2

Buyer bargains

3

They agree on a price

Example: You go to the market and bargain for a product until you agree on a price.

2. Murabaha Sale (Cost-Plus)

🔄

📈 Murabaha

1

Seller reveals purchase price

100

2

Adds a known profit

20

3

Final price

120

Example: "I bought it for 100 and I'm selling it for 120."

3. Tawliya Sale (At Cost)

Sale at the same purchase price without profit or loss.

Example: "I bought it for 100 and I'm selling it to you for 100."

4. Wadi'a Sale (At a Loss)

Sale below the purchase price (loss).

Example: "I bought it for 100 and I'm selling it for 80."

Sale TypeOriginal PriceSale PriceDifference
Murabaha100120+20 profit
Tawliya100100zero
Wadi'a10080-20 loss

📝 The Formula of Sale

Offer and Acceptance

📜 Definition

Offer (Ijab): What emanates first from one of the contracting parties.

Acceptance (Qabul): What emanates second in agreement with the first.

Types of Formula

🌳

📋 Types of Sale Formula

Verbal

I sold, I bought

Practical

Mu'ataat: exchange by action

Written

Written contracts, correspondence

1. Verbal Formula

Explicit terms: I sold, I bought, I transferred ownership

2. Practical Formula (Mu'ataat)

🏪 Scene: At the Supermarket

Ahmad takes a juice bottle from the shelf... puts it in front of the cashier...

He pays the amount... and takes the juice...

Neither of them uttered a word... but the sale is complete!

This is Mu'ataat sale — exchange by action without words.

3. Written Formula

Written contracts, commercial correspondence, electronic contracts.

Ruling on Mu'ataat Sale

SchoolRuling
Hanafis, Malikis, and Hanbalis✅ Permissible
Shafi'isThe correct view is impermissibility except for what is customary

The preponderant view: Permissibility because it has become customary.


🤝 Conclusion of the Sale

Conditions for Conclusion

1. Mutual Consent

📜 The Verse of Consent

﴿Except through trade by mutual consent﴾

[An-Nisa: 29]

Note: A sale tainted by coercion, deception, or fraud is void.

2. Capacity of the Contracting Parties

  • Sanity and discernment
  • Legal capacity to dispose

3. Validity of the Subject Matter

  • The merchandise must be lawful property legally
  • Sale of alcohol or pork is invalid

4. Existence of Authority

  • The one disposing must be the owner or agent or guardian

🤲 Sale by Sign

Its Ruling

  • ✅ Valid for the mute if the sign is understandable
  • ✅ Valid for one who can speak when needed

Its Evidence

📜 Hadith of Ease

"Allah has pardoned my nation for mistakes, forgetfulness, and what they are coerced into."

(Reported by Ibn Majah)


💻 Sale via Modern Communication Means

📱 Scene: E-Commerce

Sara browses a website...

She chooses a dress... reads the description... clicks "Buy Now"...

She pays by card... and waits for delivery...

Is this a legally valid sale?

Ruling on Sale by Phone and Internet

✅ Permissible if legal conditions are met:

  1. Accurate description of the merchandise
  2. Clear indication of price and total costs
  3. Right to cancel upon receipt if not as described
  4. Guarantee of both parties' rights

Rules of E-Commerce

RuleDetail
Accurate descriptionClear photos and detailed specifications
Complete priceIncludes taxes and shipping
Right to cancelRight to return if non-conforming
Receipt guaranteeSecurity and tracking system

🌟 Ethics of Buying and Selling

1. Truthfulness and Honesty

📜 Hadith of Blessing in Truthfulness

The Prophet ﷺ said:

"The two parties have the option as long as they haven't parted. If they are truthful and transparent, their transaction will be blessed. If they conceal and lie, the blessing will be erased."

(Unanimously agreed upon)

2. Ease in Transactions

📜 Hadith of Ease

The Prophet ﷺ said:

"May Allah have mercy on a man who is easy when he sells, when he buys, and when he demands payment."

(Reported by al-Bukhari)

3. Not Making False Oaths

📜 Hadith Condemning Oaths

The Prophet ﷺ said:

"Swearing sells the merchandise, but erases the blessing."

(Unanimously agreed upon)

4. Abandoning Blameworthy Greed

  • Being content with reasonable profit
  • Not exploiting people's needs
  • Avoiding excessive prices

📖 Stories from the Pious Predecessors: The Honesty of al-Hasan al-Basri

📖 Story: The Scholar's Integrity

It is narrated that al-Hasan al-Basri, may Allah have mercy on him, wanted to sell his donkey...

A man came wanting to buy it.

Al-Hasan: "Do you want it for carrying loads or for riding?"

The man: For riding.

Al-Hasan: "Then it's not suitable for you! It's good for carrying but not for riding; its back is weak."

The man was amazed at his honesty and integrity...

The man: I have never seen a seller more honest than you!

Al-Hasan: "Woe to you! Do you think I would hide a defect in my merchandise from you? A Muslim doesn't do that!"

The lesson: Honesty in disclosure is the foundation of Islamic commerce, and it is the cause of blessing.


🎯 Contemporary Cases — Test Your Understanding!

Case 1: Mu'ataat Sale

Samir took a product from the shelf and put its price in the self-checkout without speaking to anyone.

Question: Is this a valid sale?

Answer: ✅ Yes, this is a Mu'ataat sale which is permissible according to the majority of scholars, as it has become customary and the pillars of sale are fulfilled.


Case 2: Online Sale

Fatima bought a dress from a website based on photos and description.

Upon receipt, she found it different from the description!

Question: What is her right?

Answer: ✅ She has the right to cancel because the merchandise didn't match the description. This is the option of inspection or option of defect.

The seller must describe the merchandise accurately to prevent uncertainty, otherwise the buyer has the option.


Case 3: Swearing to Promote Merchandise

The merchant falsely swears that this merchandise is the best, or that he bought it for a higher price, to attract the buyer.

Question: What is the ruling?

Answer: ❌ This is strictly forbidden! It is the immersing oath that immerses its maker in the Fire.

The Prophet ﷺ said: "Swearing sells the merchandise, but erases the blessing."


Case 4: Murabaha in Banks

The Islamic bank buys a car for 40,000, then sells it to the customer for 50,000 in installments.

Question: Is this usury?

Answer: ✅ If the bank owns the merchandise actually then sells it for a known deferred price, this is permissible Murabaha.

The forbidden: That the ownership be fictitious or that it sells what it hasn't received.


Case 5: Price Fixing

The government wants to fix prices of basic commodities to protect consumers from exploitation.

Question: Is price fixing permissible?

Answer: ✅ Price fixing is permissible when needed to repel harm from people, especially in cases of monopoly.

The principle: "No harm shall be inflicted or reciprocated."


💎 Lesson Summary

ElementDetail
Definition of saleExchange of property for property in a lawful manner
Its pillarsContracting parties, formula, subject matter
Its typesBargaining, Murabaha, Tawliya, Wadi'a
The formulaVerbal, practical (Mu'ataat), written
Its ethicsTruthfulness, ease, not swearing

🤔 Pause and Reflect

Question to ponder:

Imagine you're selling merchandise with a hidden defect that the buyer doesn't know about and won't discover...

Will you tell them? Why?

📜 Always Remember

  • Allah sees you when people don't see you
  • "The truthful, trustworthy merchant will be with the prophets, the truthful, and the martyrs"
  • Blessing is in honesty, not in abundance of money
  • "Whoever deceives us is not one of us"

O Lord, increase me in knowledge! 📖