Business Transactions

Yahya related to me from Malik from Salih ibn Kaysan from Hasanibn Muhammad ibn Ali ibn Abi Talib that Ali ibn Abi Talib sold one ofhis camels called Usayfir for 20 camels to be delivered later.

Yahya related to me from Malik from Nafi that Abdullah ibn Umarbought a female riding-camel for four camels and he guaranteed to givethem in full to the buyer at ar-Rabadha.

Yahya related to me that Malik asked Ibn Shihab about sellinganimals, two for one with delayed terms. He said, "There is no harm init."

Malik said, "The generally agreed on way of doing thingsamong us is that there is no harm in bartering a camel for a camellike it and adding some dirhams to the exchange, from hand to hand.There is no harm in bartering a camel for a camel like it with somedirhams on top of the exchange, the camels to be exchanged from handto hand, and the dirhams to be paid within a period." He said, "Thereis no good however in bartering a camel for a camel like it with somedirhams on top of it, with the dirhams paid in cash and the camel tobe delivered later. If both the camel and the dirhams are deferredthere is no good in that either."

Malik said, "There is noharm in buying a riding camel with two or more pack-camels, if theyare from inferior stock. There is no harm in bartering two of them forone with delayed terms, if they are different and their difference isclear. If they resemble each other whether their species are differentor not, two are not to be taken for one with delayed terms."

Malik said, "The explanation of what is disapproved of in that, isthat a camel should not be bought with two camels when there is nodistinction between them in speed or hardiness. If this is accordingto what I have described to you, then one does not buy two of them forone with delayed terms. There is no harm in selling those of them youbuy before you complete the deal to somebody other than the one fromwhom you bought them if you get the price in cash."

Maliksaid, "It is permitted for someone to advance something on animals fora fixed term and describe the amount and pay its price in cash.Whatever the buyer and seller have described is obliged for them. Thatis still permitted behaviour between people and what the people ofknowledge in our land do."

Yahya related to me from Malih from Nafi from Abdullah ibn Umarthat the Messenger of Allah, may Allah bless him and grant him peace,forbade the transaction called habal alhabala. It was a transactionwhich the people of Jahiliya practised. A man would buy the unbornoffspring of the unborn offspring of a she-camel.

Malik said, "No one should buy a specified animal whenit is concealed from him or in another place, even if he has alreadyseen it, very recently or not so recently, and was pleased enough withit to pay its price in cash."

Malik said, "That isdisapproved of because the seller makes use of the price and it is notknown whether or not those goods are found to be as the buyer saw themor not. For that reason, it is disapproved of. There is no harm in itif it is described and guaranteed."

Yahya related to me from Malik from Zayd ibn Aslam from Said ibnal-Musayyab that the Messenger of Allah, may Allah bless him and granthim peace, forbade bartering live animals for meat.

Yahya related to me from Malik from Da'ud ibn al-Husayn that heheard Said ibn alMusayyab say, "Part of the gambling of the people ofJahiliya was bartering live animals for slaughtered meat, for instanceone live sheep for two slaughtered sheep."

Yahya related to me from Malik from Abu'z-Zinad that Said ibn al-Musayyab said, "Bartering live animals for dead meat is forbidden."Abu'z-Zinad said, "I said to Said ibn Musayyab, 'What do you think ofa man buying an old camel for 10 sheep?' " Said said, "If he buys itto slaughter it, there is no good in it." Abu'z-Zinad added, "All thepeople (i.e. companions) that I have seen forbade bartering liveanimals for meat."

Abu'z-Zinad said, "This used to be writtenin the appointment letters of governors in the time of Aban ibn Uthmanand Hisham ibn Ismail."

Malik said, "It is the generally agreed on way of doing thingsamong us that the meat of camels, cattle, sheep and so on is not to bebartered one for one, except like for like, weight for weight, fromhand to hand. There is no harm in that. If it is not weighed, then itis estimated to be like for like from hand to hand."

Maliksaid, "There is no harm in bartering the meat of fish for the meat ofcamels, cattle, and sheep and so on two or more for one, from hand tohand. If delayed terms enter the transaction however, there is no goodin it."

Malik said, "I think that poultry is different fromthe meat of cattle and fish. I see no harm in selling some of it forsomething different, more of one than another, from hand to hand. Noneof that is to be sold on delayed terms."

Yahya related to me from Malik from Ibn Shihab from Abu Bakr ibnAbd ar-Rahman ibn al-Harith ibn Hisham from Abu Masud al-Ansari thatthe Messenger of Allah, may Allah bless him and grant him peace,forbade the sale price of a dog, the earnings of a prostitute and theearnings of a fortune teller.

By the earnings of a prostitutehe meant what a woman was given for fornication. The earnings of afortune teller were what he was given to tell a fortune.

Malik said, "I disapprove of the price of a dog, whether it is ahunting dog or otherwise because the Messenger of Allah, may Allahbless him and grant him peace, forbade the price of a dog."

Yahya related to me from Malik that he had heard that theMessenger of Allah, may Allah bless him and grant him peace, forbade'selling and lending.'

Malik said, "The explanation of whatthat meant is that one man says to another, 'I will take your goodsfor such-and-such if you lend me such-and-such.' If they agree to atransaction in this manner, it is not permitted. If the one whostipulates the loan abandons his stipulation, then the sale ispermitted."

Malik said, "There is no harm in exchanging linenfrom Shata, for garments from Itribi, or Qass, or Ziqa. Or the clothof Herat or Merv for Yemeni cloaks and shawls and such like as one fortwo or three, from hand to hand or with delayed terms. If the goodsare of the same kind, and deferment enters into the transaction, thereis no good in it."

Malik said, "It is not good unless theyare different, and the difference between them is clear. When theyresemble each other, even if the names are different, do not take twofor one with delayed terms, for instance two garments of Herat for onefrom Merv or Quhy with delayed terms, ortwo garments of Furqub for onefrom Shata. All these sorts are of the same description, so do not buytwo for one, on delayed terms."

Malik said, "There is no harmin selling what you buy of things of this nature, before you completethe deal, to some one other than the person from whom you purchasedthem if the price was paid in cash."

Malik said, "If someone advances for goods to bedelivered after a time, and those goods are neither something to beeaten nor drunk, he can sell them to whomever he likes for cash orgoods, before he takes delivery of them, to some one other than theperson from whom he purchased them. He must not sell them to theperson from whom he bought them except in exchange for goods which hetakes possession of immediately and does not defer."

Maliksaid, "If the delivery date for the goods has not arrived, there is noharm in selling them to the original owner for goods which are clearlydifferent and which he takes immediate possession of and does notdefer."

Malik spoke about the case of a man who advanceddinars or dirhams for four specified pieces of cloth to be deliveredbefore a specified time and when the term fell due, he demandeddelivery from the seller and the seller did not have them. He foundthat the seller had cloth but inferior quality, and the seller saidthat he would give him eight of those cloths. Malik said, "There is noharm in that if he takes the cloths which he offers him before theyseparate. It is not good if delayed terms enter into the transaction.It is also not good if that is before the end of the term, unless hesells him cloth which is notthetypeof cloth for which he made anadvance.

Malik said, "The generally agreed on way of doing things among usabout whatever is weighed but is not gold or silver, i.e. copper,brass, lead, black lead, iron, herbs, figs, cotton, and any suchthings that are weighed, is that there is no harm in bartering allthose sorts of things two for one, hand to hand. There is no harm intaking a ritl of iron for two ritls of iron, and a ritl of brass fortwo ritls of brass."

Malik said, "There is no good in two forone of one sort with delayed terms. There is no harm in taking two ofone sort for one of another on delayed terms, if the two sorts areclearly different. If both sorts resemble each other but their namesare different, like lead and black lead, brass and yellow brass, Idisapprove of taking two of one sort for one of the other on delayedterms."

Malik said, "When buying something of this nature,there is no harm in selling It beforetaking possession of it to someone other than the person from whom it was purchased, if the price istaken immediately and if it was bought originally by measure orweight. If it was bought without measuring, it should be sold tosomeone other than the person from whom it was bought, for cash orwith delayed terms. That is because goods have to be guaranteed whenthey are bought without measuring, and they cannot be guaranteed whenbought by weight until they are weighed and the deal is completed.This is the best of what I have heard about all these things. It iswhat people continue to do among us."

Malik said, "The way ofdoing things among us with what is measured or weighed of things whichare not eaten or drunk, like safflower, date-stones, fodder leaves,indigo dye and the like of that is that there is no harm in barteringall those sort of things two for one, hand to hand. Do not take twofor one from the same variety with delayed terms. If the types areclearly different, there is no harm in taking two of one for one ofthe other with delayed terms. There is no harm in selling whatever ispurchased of all these sorts, before taking delivery of them if theprice is taken from someone other than the person from whom they werepurchased."

Malik said, "Anything of any variety that profitspeople, like gravel and gypsum, one quantity of them for two of itslike with delayed terms is usury. One quantity of both of them for itsequal plus any increase with delayed terms, is usury."

Yahya related to me from Malik that he had heard that theMessenger of Allah, may Allah bless him and grant him peace, forbadetwo sales in one sale.

Yahya related to me from Malik that he had heard that a man saidto another, "Buy this camel for me immediately so that I can buy himfrom you on credit." Abdullah ibn Umar was asked about that and hedisapproved of it and forbade it.

Yahya related to me from Malik that he had heard that al-Qasimibn Muhammad was asked about a man who bought goods for 10 dinars cashor fifteen dinars on credit. He disapproved of that and forbade it.

Malik said that if a man bought goods from a man for either10 dinars or 15 dinars on credit, that one of the two prices wasobliged on the buyer. It was not to be done because if he postponedpaying the ten, it would be 15 on credit, and if he paid the ten, hewould buy with it what was worth fifteen dinars on credit.

Malik said that it was disapproved of for a man to buy goods fromsomeone for either a dinar cash or for a described sheep on credit andthat one of the two prices was obliged on him. It was not to be donebecause the Messenger of Allah, may Allah bless him and grant himpeace, forbade two sales in one sale. This was part of two sales inthe one sale.

Malik spoke about a man saying to another, "'Iwill either buy these fifteen sa of ajwa dates from you, or these tensa of sayhani dates or I will buy these fifteen sa of inferior wheator these ten sa of Syrian wheat for a dinar, and one of them isobliged to me.' Malik said that it was disapproved of and was nothalal. That was because he obliged him ten sa of sayhani, and leftthem and took fifteen sa of ajwa, or he was obliged fifteen sa ofinferior wheat and left them and took ten sa of Syrian wheat. This wasalso disapproved of, and was not halal. It resembled what wasprohibited in the way of two sales in one sale. It was also includedunder the prohibition against buying two for one of the same sort offood."

Yahya related to me from Malik from Abu Hazim ibn Dinar from Saidibn al-Musayyab that the Messenger of Allah, may Allah bless him andgrant him peace, forbade the sale with uncertainty in it.

Malik said, "An example of one type of uncertain transaction and riskis that a man intends the price of a stray animal or escaped slave tobe fifty dinars. A man says, 'I will take him from you for twentydinars.' If the buyer finds him, thirty dinars goes from the seller,and if he does not find him, the seller takes twenty dinars from thebuyer."

Malik said, "There is another fault in that. If thatstray is found, it is not known whether it will have increased ordecreased in value or what defects may have befallen it. Thistransaction is greatly uncertain and risky."

Malik said,"According to our way of doing things, one kind of uncertaintransaction and risk is selling what is in the wombs of females -women and animals - because it is not known whether or not it willcome out, and if it does come out, it is not known whether it will bebeautiful or ugly, normal or disabled, male or female. All that isdisparate. If it has that, its price is such-and-such, and if it hasthis, its price is such-and-such."

Malik said, "Females mustnot be sold with what is in their wombs excluded. That is that, forinstance, a man says to another, 'The price of my sheep which has muchmilk is three dinars. She is yours for two dinars while I will haveher future offspring.' This is disapproved because it is an uncertaintransaction and a risk."

Malik said, "It is not halal to sellolives for olive oil or sesame for sesame oil, or butter for gheebecause muzabana comes into that, because the person who buys the rawproduct for something specified which comes from it, does not knowwhether more or less will come out of that, so it is an uncertaintransaction and a risk."

Malik said, "A similar case is theselling of ben-nuts for ben-nut oil. This is an uncertain transactionbecause what comes from the ben-nut is ben-oil. There is no harm inselling ben-nuts for perfumed ben because perfumed ben has beenperfumed, mixed and changed from the state of raw ben-nut oil."

Malik, speaking about a man who sold goods to a man on theprovision that there was to be no loss for the buyer, (i.e. if thebuyer could not re-sell the goods they could go back to the seller),said, "This transaction is not permitted and it is part of risk. Theexplanation of why it is so, is that it is as if the seller hired thebuyer for the profit if the goods make a profit. If he sells the stockat a loss, he has nothing, and his efforts are not compensated. Thisis not good. In such a transaction, the buyer should have a wageaccording to the work that he has contributed. Whatever there is ofloss or profit in those goods is for and against the seller. This isonly when the goods are gone and sold. If they do not go, thetransaction between them is null and void."

Malik said, "Asfor a man who buys goods from a man and he concludes the sale and thenthe buyer regrets and asks to have the price reduced and the sellerrefuses and says, 'Sell it and I will compensate you for any loss.'There is no harm in this because there is no risk. It is something heproposes to him, and their transaction was not based on that. That iswhat is done among us."

Yahya related to me from Malik from Muhammad ibn Yahya ibn Habbanand from Abu'z-Zinad from al-Araj from Abu Hurayra that the Messengerof Allah, may Allah bless him and grant him peace, forbade mulamasaand munabadha.

Malik said, "Mulamasa is when a man can feel agarment but is not allowed to unfold it or examine what is in it, orhe buys by night and does not know what is in it. Munabadha is that aman throws his garment to another, and the other throws his garmentwithout either of them making any inspection. Each of them says, 'thisis for this. 'This is what is forbidden of mulamasa and munabadha."

Malik said that selling bundles with a list of their contentswas different from the sale of the cloak concealed in a bag or thecloth folded up and such things. What made it different was that itwas a common practice and it was what people were familiar with, andwhat people had done in the past, and it was still among the permittedtransactions and trading of people in which they saw no harm becausein the sale of bundles with a list of contents without undoing them,an uncertain transaction was not intended and it did not resemblemulamasa.

Yahya related to me, that Malik said, "The generally agreed onway of doing things among us about a man buying cloth in one city, andthen taking it to another city to sell as a murabaha, is that he isnot reckoned to have the wage of an agent, or any allowance forironing, folding, straightening, expenses, or the rent of a house. Asfor the cost of transporting the drapery, it is included in the basicprice, and no share of the profit is allocated to it unless the agenttells all of that to the investor. If they agree to share the profitsaccordingly after knowledge of it, there is no harm in that."

Malik said, "As for bleaching, tailoring, dyeing, and such things,they are treated in the same way as drapery. The profit is reckoned inthem as it is reckoned in drapery goods. So if he sells the draperygoods without clarifying the things we named as not getting profit,and if the drapery has already gone, the transport is to be reckoned,but no profit is given. If the drapery goods have not gone thetransaction between them is null and void unless they make a newmutual agreement on what is to be permitted between them ."

Malik spoke about an agent who bought goods for gold or silver, andthe exchange rate on the day of purchase was ten dirhams to the dinar.He took them to a city to sell murabaha, or sold them where hepurchased them according to the exchange rate of the day on which hesold them. If he bought them for dirhams and he sold them for dinars,or he bought them for dinars and he sold them for dirhams, and thegoods had not gone then he had a choice. If he wished, he accepted tosell the goods and if he wished, he left them. If the goods had beensold, he had the price for which the salesman bought them, and thesalesman was reckoned to have the profit on what they were bought for,over what the investor gained as profit.

Malik said, "If aman sells goods worth one hundred dinars for one hundred and ten, andhe hears after that they are worth ninety dinars, and the goods havegone, the seller has a choice. If he likes, he has the price of thegoods on the day they were taken from him unless the price is morethan the price for which he was obliged to sell them in the firstplace, and he does not have more than that - and it is one hundred andten dinars. If he likes, it is counted as profit against ninety unlessthe price his goods reached was less than the value. He is given thechoice between what his goods fetch and the capital plus the profit,which is ninety-nine dinars."

Malik said, "If someone sellsgoods in murabaha and he says, 'It was valued at one hundred dinars tome.' Then he hears later on, that it was worth one hundred and twentydinars, the customer is given the choice. If he wishes, he gives thesalesman the value of the goods on the day he took them, and if hewishes, he gives the price for which he bought them according to thereckoning of what profit he gives him, as far as it goes, unless thatis less than the price for which he bought them, for he should notgive the owner of the goods a loss from the price for which he boughtthem because he was satisfied with that. The owner of the goods cameto seek extra, so the buyer has no argument against the salesman inthat to make a reduction from the first price for which he bought itaccording to the list of contents."

Malik spoke about what was done among them in the case of a groupof people who bought goods, drapery or slaves, and a man heard aboutit and said to one of the group, "I have heard the description andsituation of the drapery goods you bought from so-and-so. Shall I giveyou such-and-such profit to take over your portion?" This personagreed, and the man gave him the profit and became a partner in hisplace. When he looked at the purchase, he saw that it was ugly andfound it too expensive.

Malik said, "It is obliged on him andthere is no choice in it for him if he bought it according to a listof contents and the description was well-known."

Malik spokeabout a man who had drapery goods sent to him, and salesmen came tohim and he read to them his list of contents and said, "In each bag issuch-and-such a wrap from Basra and such-and-such a light wrap fromSabir. Their size is such-and-such," and he named to them types ofdrapery goods by their sort, and he said, "Buy them from me accordingto this description." They bought the bags according to what hedescribed to them, and then they bought them and found them tooexpensive and regretted it. Malik said, "The sale is binding on them,if the goods agree with the list of contents on which he sold them."

Malik said, "This is the way of doing things which peoplestill use today. They permit the sale among them when the goods agreewith the list of contents and are not different from it. "