-
Exchange
-
Trade
-
Sale
-
Swearing in Trade
-
Forward Transactions
-
Speculative Business
-
Weights and Measures
-
Monopoly
-
Price Control
I-
Exchange
Meaning and
Importance:
Exchange means transfer of one thing for another or for money.
Thus any commercial or business transaction which involves
transfer of one thing for another-it may be one commodity in
exchange for another commodity or one commodity in exchange for
money-is called exchange.
In primitive times
exchange was through barter only i.e. one commodity was exchanged
for another commodity. Since barter was an inconvenient, rigid and
unjust method of exchange, man looked for a medium of exchange
which was ultimately developed in the form of money. Now in all
organised and developed societies exchange takes place through
money.
Exchange has ever
been, and now it has become more, indispensable to human
existence, because man is not self sufficient. He does not produce
all his necessities of life and everything he needs. For many
things he needs he is dependent upon others. Thus he satisfies his
wants through exchange. Therefore, exchange has assumed vital
importance in economics as it coordinates and adjusts consumption
and production.
Forms of
Exchange:
Forms or methods of exchange have been changing with the needs of
the time and the place. Broadly speaking, exchange has generally
existed in two forms: exchange of one commodity for another
commodity called barter and exchange of commodity for money.
Barter exchange or barter trade existed in ancient and medieval
times. It still exists in very under-developed communities or in
villages especially in agricultural sector. But mostly this method
of exchange has given place to money as medium of exchange,
because the value of commodities or services can be easily
expressed and instantly translated into terms of money.
Money has also been
assuming many forms i.e from coins of metals especially of gold
and silver to paper currency and banknotes.
Islamic
Approach:
At the time of advent of Islam i.e. in the beginning of sixth
century AD money was already known to the people and the coins of
various denominations were in circulation among the then developed
communities. The Arab traders who were in frequent touch with
other countries were not only aware of these coins but also used
them in their daily business transactions. But barter was still in
vogue and a large number of transactions were still conducted
through barter system particularly in agricultural commodities.
This was, in brief, the situation when Prophet Muhammad (PBUH) was
busy in establishing a small Islamic state at al-Madinah.
The Holy Prophet
clearly saw elements of exploitation, injustice and usury and many
other economic ills in the barter system of exchange. He,
therefore, decided to replace barter system by exchange through
money. Following traditions of the Prophet of Islam highlight his
attitude towards exchange.
1. Umar reported
that the Holy Prophet said: “To sell wheat for wheat, barley for
barley, dates for dates is ‘Riba’ except when sold from hand to
hand (i.e., transaction is completed on the spot) (and also in
equal quantity)
-(Bukhari,
Muslim)
2. Abu Saeed and
Abu Hurairah reported that the Holy Prophet appointed a man as tax
collector to Khaiber. He returned to him with best dates. So he
(the Prophet) enquired: “Is every date of Khaibar like this”? “No
by Allah” he said “O Prophet ! verily we take one sa’a of this for
two sa’a and two sa’a for three sa’a. The Prophet said: Don’t do
it, sell (your) dates for Dirhams and then purchase the best dates
for Dirhams.
-(Bukhari,
Muslim)
3. Abu Saeed
Khudri reported that one day Bilal came to the Messenger of Allah
with green variety of dates. The Messenger of Allah enquired,
“wherefrom did you bring this”? Bilal replied, “We had dates of
inferior quality,. We therefore, gave two Sa’a of that quality in
exchange for one Sa’a of this (superior) quality with the object
of presenting it to the noble Prophet.” On hearing this the
Prophet said:”…this is clear riba. Don’t do it again, rather when
you wish to acquire dates of superior quality, first sell your
dates of inferior quality for money, and then purchase dates of
superior quality therewith.”
-(Bukhari)
Thus the Prophet of
Islam discouraged barter transactions. Exchange of two commodities
of same kind was not allowed except that the quantity was equal
and possession was transferred at the same time. Although barter
transactions were tolerated (with certain conditions) due to their
prevalence, but the same were not considered desirable. In many
cases the Prophet issued clear instructions to his companions not
to enter into barter transactions. He rather advised them to sell
their commodity for money and purchase the desired commodity with
its price. The object was partly to abolish the practice of “riba’
in commercial dealings and partly to encourage adoption of money
as medium of exchange.
[Back
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II-
Trade
Trade (Tajarah)
plays significant role in acquisition of wealth. It is certainly
superior to agriculture, service and even industry. History is
witness to the fact how individuals and communities have gained
prosperity through trade and how nations acquired territories and
built up colonial empires through trade. Islam recognises role of
trade in acquiring fortune and greatness. There are many verses of
the Qur’an about trade and sale. The Prophet of Islam also
highlighted importance of trade. Let us have a glance through the
relevant verses of the Qur’an and traditions of Holy Prophet.
The Verses of
the Qur’an:
1. It is no sin for
you that ye seek the bounty of your Lord (by trading). But, when
ye press on in the multitude from ‘Arafat, remember Allah by the
sacred monument. Remember Him as He hath guided you, although
before ye were of those astray.
-(2:198)
2. That is
because they say: Trade is just like usury; whereas Allah
permitteth trading and forbiddeth usury…..
-(2:275)
3. O ye who
believe! Squander not your wealth among yourselves in vanity,
except it be a trade by mutual consent, and kill not yourselves.
Lo! Allah is ever Merciful unto you.
-(4:29)
4. Say: If your
fathers and your sons, and your brethren, and your wives, and your
tribe, and the wealth ye have acquired, and merchandise for which
ye fear that there will be no sale and dwellings ye desire are
dearer to you than Allah and His messenger and striving in His
way: then wait till Allah bringeth His command to pass. Allah
guideth not wrong-doing folk.
-(9:24)
5. Men whom
neither merchandise nor sale beguileth from remembrance of Allah
and constancy in prayer and paying to the poor their due; who fear
a day when hearts and eyeballs will be overturned;
-(24:37)
6. O ye who
believe! Shall I show you a commerce that will save you from a
painful doom? Ye should believe in Allah and His messenger, and
should strive for the cause of Allah with your wealth and your
lives. That is better for you, if ye did but know.
-(61:10-11)
7. O ye who
believe! When the call is heard for the prayer of the day of
congregation, haste unto the remembrance of Allah and leave your
trading. That is better for you if ye did but know. And when the
prayer is ended, then disperse in the land and seek of Allah’s
bounty, and remember Allah much, that ye may be successful.
-(62:9-10)
Ahadith of
Muhammad (PBUH):
1. Jaber reported
that the Messenger of Allah said: May Allah be kind to a man of
gentle dealings when he sells, when he purchases and when he gives
decision.
-(Bukhari)
2. Hazaifah
reported that the Messenger of Allah said: There was a man amongst
those who were before you. The angel came to him to take his
breath. He was questioned: Have you done any good deed? “I don’t”
know” replied he. “Look” it was directed to him. He said: I don’t
know anything except that I used to carry on business with the
people in the world, show kindness to them, give time to the
solvent and remit the needy. Then Allah admitted him in Paradise.
-(Bukhari and
Muslim)
3. Abu Sayeed
reported that the Messenger of Allah said: The truthful
trustworthy merchant will be with the prophets, truthful and
martyrs.
-(Tirmizi, Ibn
Majah (Rare))
4.
Obaid-bin-Rafa’a from his father reported that the Holy Prophet
said: The merchants will be gathered on the Resurrection Day as
transgressors except those who were fearful of Allah, pious and
truthful.
-(Ibn Majah,
Tirmizi (Approved, Correct))
5.
Abu Hurairah reported from the Messenger of Allah
who said: The two (seller and buyer) must not part away except by
mutual consent.
-(Abu Daud)
6.
Ayesha reported that the Messenger of Allah ordered
to enjoy the skin of dead animals when tanned.
-(Malek, Abu Daud)
7.
Abdullah-bin-Omar reported that the Prophet forbade
the sale of fruits till the good ones become ripe. He prohibited
the seller and the buyer. Agreed upon it. And in a narration of
Muslim. He forbade the sale of dates till they are ripe, and of
corns till they become white and safe from mishaps.
-(Bukhari,
Muslim)
8.
Ibn Omar reported: They (people) used to purchase
food-grain in a place confronting the market and sell it also in
its place. Then the Holy Prophet forbade them to sell it in its
place till they take it in possession.
-(Abu Daud)
9.
Ibn Abbas reported: As for that of which the Holy
Prophet prohibited sale, it is food-crops till they come in
possession. Ibn Abbas said: I don’t consider anything but just
like it.
-(Bukhari and
Muslim)
10.
Abu Hurairah reported that the Messenger of Allah
said: Nobody shall bargain over the bargain of his brother Muslim.
-(Muslim)
The Prophet of
Islam himself adopted the profession of trade during his youth and
worked as agent of Khadijah, a wealthy lady of Makkah, who was
very impressed by his honesty, fair dealing and trust-worthiness
and who later on became his wife. His companions Abu Bakr and
Usman traded in cloth whereas Umar carried on trade in corn. He
issued instructions to his followers to be honest and trust-worthy
in their commercial dealings as the trustworthy merchant will be
with the prophets, truthful and the martyrs on the Day of
Judgement. His followers not only carried on maritime and land
trade throughout the then known world but also became the torch
bearers of Islam to the darkest corners of the world causing the
spread of message of Allah.
[Back
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III- Sale
Just and fair
dealings have been stressed in sale or ‘Bai’ by the Qur’an and the
Prophet of Islam. Let us have a look at the relevant verses of the
Qur’an and the Sunnah before elaborating dimensions of this
subject.
The verses of
al-Qur’an:
1. ........ Be not
averse to writing down (the contract) whether it be small or
great, with (record of) the term thereof. That is more equitable
in the sight of Allah and more sure for testimony, and the best
way of avoiding doubt between you; save only in the case when it
is actual merchandise which ye transfer among yourselves from hand
to hand. In that case it is no sin for you if ye write it not. And
have witnesses when ye sell one to another, and let no harm be
done to scribe or witness. If ye do (harm to them) Lo! it is a sin
in you. Observe your duty to Allah. Allah is teaching you. And
Allah is Knower of all things.
-(2:282)
1.
Men whom neither merchandise nor sale beguileth
from remembrance of Allah and constancy in prayer and paying to
the poor their due; who fear a day when hearts and eyeballs will
be overturned;
-(24:37)
Ahadith of
Prophet Muhammad (PBUH):
1. Abu Hurairah
reported from the Messenger of Allah who said: The two (seller and
buyer) must not part away except by mutual consent.
-(Abu Daud)
2.
Ibn Omar reported that a man said to the Holy
Prophet: Verily I am cheated in sale. He said: When sale is held,
say—There’s no cheating. The man used to utter it.
-(Bukhari,
Muslim)
3.
Ibn Omar reported that the Messenger of Allah said:
The buyer and the seller each of them has got option on his
partner so long as they have not separated themselves except the
option of buying. Agreed. In a narration of Muslim—When the
buyer and seller carry on transaction, each of them has got option
with respect to his sale so long as they do not part away or their
sale is held conditional on option. When their sale is held on
option, it becomes binding. And in a narration of Tirmizi: The
buyer and seller are on option till they do not become separate
till they choose.
4.
Hakim-bin-Hizam reported that the Messenger of
Allah said: The buyer and seller have got option so long as they
do not part away. If they speak the truth and disclose (defect),
they are blessed in their sale transaction, and if they conceal
and speak falsely, the blessing of their sale in decreased.
-(Bukhari,
Muslim)
5.
Abdullah-bin-Mas’ud reported that the Messenger of
Allah said: Where the seller and buyer differ, swearing is the
swearing of the seller, and the purchaser has got the right of
option. Tirmizi narrated it. In a narration of Ibn Majah,
he said: When the seller and the buyer disagree, and the seller is
standing on his own position while there is no proof between them,
then the oath is what the seller takes or both should rescind the
sale.
6.
Anas reported that the Messenger of Allah sold a
saddle and a cup and said: Who will purchase this saddle and cup?
A man replied. I shall take them both for one dirham. The Holy
Prophet said: Who will increase over one dirham? A man offered him
two dirhams. Then he sold them both to him.”
-(Trimizi, Abu
Daud, Ibn Majah)
7.
Jaber reported that the Messenger of Allah forbade
Mukhabarah, Muhaqalah and Muzabanah. Muhaqalah is a man’s selling
corn for one hundred Farq of wheat, and Muzabanah is to sell dry
dates upon the heads of date trees for one hundred Farq. And
Mukhabarah is to let out land for one-third or one-fourth (of
produce).
-(Muslim)
8.
Abdullah-bin-Omar reported that the Prophet forbade
the sale of fruits, till the good ones become ripe. He prohibited
the seller and the buyer. Agreed upon it. And in a narration of
Muslim: He forbade the sale of dates till they are
ripe, and of corns till they become white and safe from mishaps.
9.
Jaber reported that the Messenger of Allah forbade
the sale (of fruits upon the trees) for years, and ordered to wait
for mishaps.
-(Muslim)
10.
Jaber reported that the Messenger of Allah said: If
you purchase dry date from your brother and then mishap afflicts
it, it is not lawful for you to take out of it for what you take
unjustly from your brother’s property.
-(Muslim)
11.
Abu Hurairah reported that the Messenger of Allah
said: Don’t go forward to meet the caravans for purchase, and none
of you shall purchase on the purchase of others. Don’t interfere
with one another in bargain, and no citizen shall sell to a
villager, and don’t keep back the milk of camels and goats. Whoso
purchases them after that has got two options after milking them.
If he likes, he may keep them and if he does not like, he may
return them with one sa’a of dry dates.
Agreed
upon it. And in narration of Muslim: Whoso purchases a goat
full of milk in udder has got an option for three days. If he then
returns it, he shall return one sa’a of food-grain with it and not
wheat.
12.
Abu Hurairah reported that the Messenger of Allah
said: Don’t meet corn merchant ahead. Whoso meets him ahead and
then purchases from him---when its owner comes to market, he has
got an option.
-(Muslim)
13.
Ibn Omar reported that the Messenger of Allah said:
Don’t meet merchandise beforehand till it is taken down in market.
-(Bukhari,
Muslim)
14.
Ibn Umar reported that the Holy Prophet said:
Nobody shall bargain over the bargain of his brother, nor will he
seek the hand in marriage which his brother (Muslim) sought unless
permission is granted to him.
-(Muslim)
15.
Abu Hurairah reported that the Holy Prophet forbade
the sale by stone-throwing and the sale of unpossessed thing.
-(Muslim)
16.
Ibn Omar reported that the Holy Prophet forbade
bargain of Habalul Habajah: and it was a bargain which the people
of ignorance used to carry on. A man used to purchase a camel till
a she-camel became pregnant and then till what was in the womb
became pregnant.
-(Bukhari,
Muslim)
17.
Jaber reported that the Holy Prophet prohibited the
bargain of camel’s sock and sale of water and cultivable land.
-(Muslim)
18.
Abu Hurairah reported that the Holy Prophet passed
by a heap of corns. He thrust his hand therein but his fingers
touched moisture. He asked, O owner of corn! What is this? He
replied: Rain fell on it, O Messenger of Allah. He enquired: Have
you not done so over the corn so that people may see it? Whoso
acts with deceit is not of me.
-(Muslim)
19.
Ali reported that the Messenger of Allah forbade
the (forced) purchase from a needy person, and purchase from the
inconsiderate and purchase of fruit before it reaches maturity.
-(Abu Daud)
20.
Abu Hurairah reported that the Holy Prophet forbade
two bargains in one sale.
-(Malek, Tirmizi,
Abu Daud, Nisai)
21.
Waselah-bin-Asqa’a reported: I heard the Messenger
of Allah say: Whoso sells a defective thing without disclosing it
continues to be in the wrath of Allah or angels continue to curse
him.
-(Ibn Majah)
Now in the light of
the verses of the Qur’an and particularly in the light of Ahadith
of the Prophet, let us understand various aspects of sale.
What is Sale?
Sale is contract, like any other civil contract, which is made by
declaration and acceptance expressed clearly in words or in
expression conveying the same meaning. The declaration may be made
personally or by letter or message. The acceptance may be deferred
until the breaking up of the meeting. An offer made by purchaser
cannot be restricted by seller or to any particular parts of the
goods. A little deviation from the offer or acceptance will not
make the sale complete. If the acceptance be not expressed in due
time, the declaration is null and void. A sale may be entered into
either for ready money or for payment within a fixed time. In case
of a house sale, the foundations and superstructure are included.
In the sale of land, trees upon it are included but corn is not
included unless there is stipulation.
The contract of
sale, according to the Qur’an, should be made in writing, be it
small or great, along with its terms and conditions and also
witnesses. However, there is no sin if you write or do not write a
contract of sale involving merchandise which you transfer among
yourselves from hand to hand.
Kinds of Sale:
There are four types of sale:
1. Muqaezah: It
is sale of kind for kind.
2. Sarf: It is
sale of cash for cash as sale of gold for silver.
3. Salm: It is
sale of a credit for kind in cash as crops are taken for payment
in future.
4. Mutleq Sale:
Free sale as sale of a thing in cash for price in cash, is called
Mutleq sale.
Option in Sale:
The power to withhold or accept in trade is called option. It
occurs before the sale is complete and there are due proposal and
acceptance. A purchaser has got the right of option and may reject
an article upon inspection of the article if he has not seen it at
the time of purchase. A seller has no option of inspection after
sale. Option of inspection continues in force to any distance of
time after the contract, unless destroyed by circumstances. A
condition of option may lawfully be stipulated by either party
provided it does not exceed three days. Imam Muhammad and Abu
Yusuf fixed no time limit. The possession of option may annul the
sale with knowledge of the party or confirm it without his
knowledge. A purchaser detecting any defect in the article may
annul the sale.
Unlawful Sales:
Following types of sales, which were very common in Arabia in
those days, were prohibited and declared unlawful by the Holy
Prophet as they involved some element of riba, exploitation,
fraud, blackmail, deception, misrepresentation, injustice, gamble,
chance or unfairness:
1. Sale
Muzabanah: Sale of a known quantity for unknown quantity or
price. It is applicable to fruits on trees which are sold in
exchange for dry fruits.
2. Sale
Munabazah: Sale by stone-throwing at commodity of sale. One
man throws the cloth he has for sale towards another and the sale
becomes confirmed, even though the other man may not have touched
it or seen it.
3.
Habal-Al-Habala: Sale of foetus in womb. One purchased a
she-camel with the promise that he would pay the price when it
would give birth to a she-camel.
4. Mulamasah:
Sale by touch. One purchases cloth by touching it without opening
it or seeing it or examining it.
5. Muhaqalah:
Grain in ear was sold for dry grain.
6. Mu’awamah:
Sale of fruits while upon trees for one year, two years or more
whether the fruits appear or not.
7. Mukhabarah:
Transfer of a limited and not absolute interest in a land.
8. Sunnayah:
Sale of fruits upon trees after leaving some fruit from the
subject matter of sale.
9. Talqi-Jalab:
Purchase of corn and food-stuffs on the way before merchandize
actually reach their destined places. It was a common practice
with the people of Madinah that, when the farmers brought grain to
the town, they would meet them outside the town and purchase all
the grain, and then sell it at their own price.
10. Sale by Al-Hadir-Libad:
Some people worked as agents of the grain-sellers (middle-men) and
all grain was sold through them. They earned a profit from both
the seller and the buyer and often deprived the cultivator of his
just profit and the buyer of a just and fair price. The Holy
Prophet forbade this type of bargaining in the interest of the
cultivator as well as the buyer.
11. Sale
Ainiyah: Sale of commodities, especially perishable, without
obtaining their possession.
12. Sale Sarf:
Sale of gold and silver for gold and silver is prohibited unless
sold hand to hand and in equal quantity, otherwise it is `riba’.
13. Sale al-Gharar:
Any sale by deceiving the opposite party. Examples of such type of
sale are as follows.:
(a) Misrat:
Sale of animal which is not milked for a number of days and its
milk is left in the udder to deceive the buyer.
(b) Najsh:
Raising the price of an article of merchandise or outbidding in
sale, not from a desire to purchase it, but with a view to trap
the buyer.
(c) Sale
by Oath:
To sell articles by taking oaths regarding their superior
quality.
(d) Adulteration
of articles of inferior quality with superior quality as water
in milk.
14.
Sale of fruits and corns till they are ripe and fit
for human consumption.
15.
Sale or lease of water and grass.
16.
Sale of grapes till they are black, and corns till
they become hard.
17.
Sale of goods without delivery and cash price i.e.
sale with a promise of delivery of goods for a promise of price.
18.
Bargaining with the needy persons and the poor.
19.
A sale in exchange of carrion, blood, person of
free man, uncaught fish in water, a bird in air which will not
return, milk in udder, and hair or wool upon an animal.
20.
Sale of wine, pork etc.
21.
Any article which cannot be separated from its
situation without injury or of which the quality or existence
cannot be ascertained or the quantity of which can be judged by
conjecture.
22.
The sale of an absconded slave, woman’s milk,
bristles of heg, human hair and undressed hides. It is lawful to
sell or apply in use bones, wools, sinews, horns or hairs of all
animals which are dead excepting those of men and hogs.
[Back
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IV- Swearing in Trade
It was a common
practice in the times of the Prophet, as today, that the sellers
used to sell their goods by taking oaths to convince the buyers
about the superior quality of their goods although they were of
bad or defective quality. This practice has been strictly
prohibited and condemned by the Holy Qur’an and the Prophet.
Relevant verses of the Qur’an and traditions of the Prophet are as
under.
Verses of the
Qur’an :
1. Lo! Those who
purchase a small gain at the cost of Allah’s covenant and their
oaths, they have no portion in the Hereafter. Allah will neither
speak to them nor look upon them on the Day of Resurrection, nor
will He make them grow. There’s will be a painful doom.
-(3:77)
2.
Allah will not take you to task for that which is
unintentional in your oaths, but He will take you to task for the
oaths which ye swear in earnest………..
-(5:89)
Ahadith of
Muhammad (PBUH):
1. Abu Qatada
reported that the Messenger of Allah said: Be careful of excessive
swearing in sale, because it finds market but then reduces
(blessing).
-(Muslim)
2.
Abu Hurairah reported that the Messenger of Allah
said: Oath is a means of bargain for the commodities but a cause
of deterioration in blessing.
---(Bukhari,
Muslim)
3.
Qais-bin-Abi-Gerzata reported: We were called
‘Samaserah’ at the time of the Holy Prophet. The Prophet passed by
us and named us with a name which is better than the former. He
addressed: O chamber of merchants ! (As) for) sale, futile words
and false swearings are often used in it. So mix it with alms.
-(Tirmizi, Nisai,
Ibn Majah, Abu Daud)
4.
Abu Omamah reported that the Prophet said: Whoso
takes the right of a Muslim with his oath, Allah makes hell sure
for him and Paradise unlawful. A man asked him: O Prophet of
Allah, even though it be a small thing? He said: Even if it is a
rod of Arak.
-(Muslim)
[Back
to the start of this chapter]
V- Forward Transactions
Islam disapproves
business involving forward transactions. The Holy Prophet has
prohibited to sell goods which are not in one’s possessions.
Following traditions of the Prophet indicate the prohibition of
such business:
1.
Amr-bin-Shuaib reported from his father who from
his grandfather that the Messenger of Allah said: Advance loan and
sale are not lawful, and there are no two conditions in a sale,
and no profit till it comes in possession, and no sale what is not
in your possession.
-(Abu Daud, Nisai,
Tirmizi (correct)
2.
Ibn Omar reported: They (people) used to purchase
food-grain in a place confronting the market and sell it also in
its place. Then the Holy Prophet forbade them to sell it in its
place till they take it in possession.
-(Abu Daud)
3.
Ibn Omar reported that the Messenger of Allah said:
Whoso purchases food stuffs should not sell them till he takes
their full measurement. In a narration of Ibn Abbas till he
measures it.
-(Bukhari,
Muslim)
4.
Hakim-bin-Hezam reported: The Messenger of Allah
prohibited me to sell what is not in my possession. Tirmizi
narrated it. And in a narration of Abu Daud and Nisai, he
said, I asked: O Messenger of Allah ! a man comes to me and
intends to make bargain with me, but it is not in my possession.
Shall I purchase it from the market? He said: Don’t purchase what
is not in your possession.
It has been proved
by the modern economic theory that trade cycles, which cause
disruption in economy, are partly caused by brisk activity of
those who indulge in forward transactions.
[Back
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VI- Speculative Business
Speculation
signifies the phenomenon of buying something at cheap rates and
selling the same in future at higher rates. When the future price
is expected to be higher than the present price of a thing,
speculative buyers purchase it with a view to selling it at a
higher price in future. Similarly, if the future price is expected
to be lower than the present, speculators will sell now in order
to avoid selling at a lower price in future. This type of business
has been disapproved by Islam. Especially the withholding of
cereals or other essential articles of common use with a view to
raise their prices artificially (which is also called hoarding)
has been strongly condemned by the Prophet of Islam. His Ahadith
are:
1.
Ma’mar reported that the Messenger of Allah said:
whoever withholds stocks of grain to make them scarce and dear is
a sinner.
-(Muslim)
2.
The Holy Prophet once condemned the mentality of a
hoarder thus: He is a very bad man, who is grieved at low prices
and is pleased at higher prices.
-(Bukhari)
3.
‘Umar reported: The Prophet (be peace on him) said
: “One who imports grain from outside and sells at the market rate
his maintenance is blessed, while he who withholds grain from sale
in view of an estimated dearness in future, he is thrown away from
God’s pleasure.
4.
Umar
said: “one who brings grain in our city will be blessed with
(abundance of) wealth and one who hoards will be cursed. If any
one withholds grain (or other articles of use) while men of God
(i.e. the people) need it, the ruler can forcibly sell his grain
(or other articles of use)”
-(Mutta)
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VII- Weights and Measures
Deceiving the
buyers or customers and harming their interest by spurious or
defective weights and measures has been strictly prohibited by
Islam. The Qur’an has strongly condemned the practice of wrong
weighing and wrong measuring among the people of old specially the
people of Median to whom Prophet Shuaib was sent. The believers
have been warned to give full measure and weight with the true
balance in order to escape punishment of God. The Qur’an says:
1.
Give full measure and full weight, in justice.
-(Al-Anam 6:152)
2.
And unto Median (We sent) their brother Shuaib.
He said: O my people ! Serve Allah. Ye have no other God save Him!
And give not short measure and short weight. Lo! I see you
well-to-do, and Lo! I fear for you the doom of a besetting Day. O
my people ! Give full measure and full weight in justice, and
wrong not people in respect of their goods. And do not evil in the
earth, causing corruption.
-(Hud 11:84-85)
3.
Fill the measure when ye measure, and weigh with a
right balance; that is meet, and better in the end.
-(Bani-Israil
17:35)
4.
Give full measure, and be not of those who
give less (than the due). And weight with the true balance. Wrong
not mankind in their goods, and do not evil, making mischief in
the earth.
-(Ash Shuara
26:181-183)
5.
And the sky He hath uplifted; and He hath set the
measure. That ye exceed not the measure, But observe the measure
strictly, nor fall short thereof.
-(Ar-Rahman
55:7-9)
6.
Woe unto the defrauders: Those who when they take
the measure from mankind demand it full, But if they measure unto
them or weigh for them, they cause them less. Do such (men) not
consider that they will be raised again Unto an awful Day, the day
when (all) mankind stand before the Lord of the Worlds?
-(Al-Mutaffifin
83:1-6)
The Prophet of
Islam took every possible step to popularise the use of standard
weights and measures in the market. He blessed those who were
honest in weighing and measuring. It is reported by Anas bin Malik
and Abdullah bin Zaid that the Messenger of Allah prayed once: O
God ! bless the measure of the people of Madinah (Mishkat)
The Prophet also
emphasised that the goods should be measured or weighed before
purchasing or selling them. Usman reports that the Holy Prophet
told him to always weight and measure anything he bought or sold (Bukhari).
Ibn Umar reports that the Apostle of Allah told them that measure
of Madinah was trustworthy and weight of Makkah (Mishkat).
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VIII- Monopoly
Monopoly or Ijarah
is said to exist when the sole control of the supply of any
commodity or service is in the hands of one person or a one
business organisation. The monopolist controls the supply of the
commodity or the service and fixes its price at his discretion to
the determent of the interest of the consumers or the public.
Islam does not permit the establishment of monopolies over
commodities or services which are harmful to the interests of the
community. Especially monopolies over food-stuffs or articles of
daily use are banned by Islam and those essential things which are
required by everyone are maintained under joint or common
ownership of the community. Following traditions of the Prophet of
Islam bring home this point:
1.
It is reported by Ibn Abbas that the Messenger of
Allah said: Grazing land belongs to Allah and His Messenger and no
one is permitted to keep it to himself.
_(Bukhari)
2.
Ibn Abbas reported that the Apostle of Allah said:
All Muslims jointly share three things i.e., water, grass and
fire.
-(Abu Daud)
3.
Abyaz bin Hamal Marbi reported that the Holy
Prophet took back allotment of salt mine from him when he found
that it was for common use of all Muslims.
-(Tirmizi, Ibn
Majah)
4.
Ma’mar reported that the Messenger of Allah said:
Whoever monopolises is a sinner.
-(Muslim)
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IX- Price Control
The artificial
scarcity of goods created by unscrupulous businessmen generally
results in price-like. It may be on account of speculative
business, hoarding, black marketing or smuggling. As we have
studied earlier, all these practices are banned in Islamic
society. Therefore, ordinarily there is no fear that price would
rise artificially because the true Muslims are not expected to
indulge in hoarding or speculation. However, black sheep are there
who do not abstain from indulging in these malpractices with a
view to harvest undue profits and thus cause inflationary rise in
price. Such situation took place once even during the reign of the
Prophet. The relevant tradition is as under:
Anas reported that
the current price once became dear at the time of the Messenger of
Allah. They asked: O Messenger of Allah! Fix a rate for us. The
Holy Prophet replied: Verily Allah is One who controls price,
curtails, gives amply and provides sustenance; and certainly I
hope that I should meet my Lord while there will be none amongst
you who will hold me responsible either for blood or for property.
-(Tirmizi, Abu
Daud, Ibn Majah)
Although the
Prophet declined to intervene to fix or control prices, yet steps
were taken by him so often to eliminate hoarding, abolish
monopolies and forbid speculative business so that prices should
not unduly rise.
However, the
jurists hold that Islamic government can intervene and fix prices
if unscrupulous businessmen, speculators and hoarders have raised
prices of food-stuffs and articles of common use by artificially
creating scarcity of these things in the market. But the
government should not generally interfere in natural flow of
prices in free market in normal circumstances.
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