Hamba Allah

Hadith Imam Malik about Business Transactions

Book 31 : Hadith 31.23.53

Yahya related to me from Malik that Muhammad ibn Abdullah ibn Abi Maryam asked Said ibn al-Musayyab's advice. "I am a man who buys food with receipts from al-Jar. Perhaps I will buy something for a dinar and half a dirham, and will be given food for a half." Said said, "No. You give a dirham, and take the rest in food." (A half dirham did not exist as a coin.)

Book 31 : Hadith 31.23.54

Yahya related to me from Malik that he had heard that Muhammad Sirin used to say, "Do not sell grain on the ears until it is white."

Malik said, "If someone buys food for a known price to be delivered at a stated date, and when the date comes, the one who owes the food says, 'I do not have any food, sell me the food which I owe you with delayed terms.' The owner of the food says, 'This is not good, because the Messenger of Allah, may Allah bless him and grant him peace, forbade selling food until the deal was completed.' The one who owes the food says to his creditor, 'Sell me any kind of food on delayed terms until I discharge the debt to you.' This is not good because he gives him food and then he returns it to him. The gold which he gave him becomes the price of that which is his right against him and the food which he gave him becomes what clears what is between them. If they do that, it becomes the sale of food before the deal is complete."

Malik spoke about a man who was owed food which he had purchased from a man and this man was owed the like of that food by another man. The one who owed the food said to his creditor, "I will refer you to my debtor who owes me the same amount of food as I owe you, so that you may obtain the food which I owe you ."

Malik said, "If the man who had to deliver the food, had gone out, and bought the food to pay off his creditor, that is not good. That is selling food before taking possession of it. If the food is an advance which falls due at that particular time, there is no harm in paying off his creditor with it because that is nota sale. It is not halal to sell food before receiving it in full since the Messenger of Allah, may Allah bless him and grant him peace, forbade that. However, the people of knowledge agree that there is no harm in partnership, transfer of responsibility and revocation in sales of food and other goods."

Malik said, "That is because the people of knowledge consider it as a favour rendered. They do not consider it as a sale. It is like a man lending light dirhams. He is then paid back in dirhams of full weight, and so gets back more than he lent. That is halal for him and permitted. Had a man bought defective dirhams from him as being the full weight, that would not be halal. Had it been stipulated to him that he lend full weight in dirhams, and then he gave faulty ones, that would not be halal for him."

Book 31 : Hadith 31.23.55

Malik said, "Another example of that is that the Messenger of Allah, may Allah bless him and grant him peace, forbade the sale called muzabana and granted an indulgence in the ariya for computing the equivalent in dates. It was distinguished between them that the muzabana-sale was based on shrewdness and trade, and the ariya sale was based on a favour rendered, and there was no shrewdness in it."

Malik said, "A man must not buy food for a fourth, a third, or a fraction of a dirham on the basis that he be given that food on credit. There is no harm in a man buying food for a fraction of a dirham on credit and then he gives a dirham and takes goods with what remains of his dirham because he gave the fraction he owed as silver, and took goods to make up the rest of his dirham. There is no harm in that transaction."

Malik said, "There is no harm in a man placing a dirham with another man and then taking from him known goods for a fourth, third, or a known fraction. If there was not a known price on the goods and the man said, 'I will take them from you for the price of each day,' this is not halal because there is uncertainty. It might be less one time, and more another time, and they would not part with a known sale."

Malik said, "If someone sells some food without measuring precisely and does not exclude any of it from the sale and then it occurs to him to buy some of it, it is not good for him to buy any of it except what it would be permitted for him to exclude from it. That is a third or less. If it is more than a third, it becomes muzabana and is disapproved. He must only purchase from what he would be permitted to exclude, and he is only permitted to exclude a third or less than that. This is the way of doing things in which there is no dispute with us."

Book 31 : Hadith 31.24.56

Yahya related to me from Malik that he had heard that Umar ibn al-Khattab said, "There is no hoarding in our market, and men who have excess gold in their hands should not buy up one of Allah's provisions which he has sent to our courtyard and then hoard it up against us. Someone who brings imported goods through great fatigue to himself in the summer and winter, that person is the guest of Umar. Let him sell what Allah wills and keep what Allah wills."

Book 31 : Hadith 31.24.57

Yahya related to me from Malik from Yunus ibn Yusuf from Said ibn al-Musayyab that Umar ibn al-Khattab passed by Hatab ibn Abi Baltaa who was underselling some of his raisins in the market. Umar ibn al-Khattab said to him, "Either increase the price or leave our market."

Book 31 : Hadith 31.24.58

Yahya related to me from Malik that he had heard that Uthman ibn Affan forbade hoarding .

Book 31 : Hadith 31.25.59

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

Book 31 : Hadith 31.25.60

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

Book 31 : Hadith 31.25.61

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

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

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

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

Malik said, "It is permitted for someone to advance something on animals for a fixed term and describe the amount and pay its price in cash. Whatever the buyer and seller have described is obliged for them. That is still permitted behaviour between people and what the people of knowledge in our land do."