Trade Transaction in Islam

                                   All compliment is for Allah alone, the most compassionate and the benevolent, may peace, acknowledgement and the benediction be upon the prophet Muhammad (S.A.W), his whole family, his Sahabas and those that follow their footpaths with righteous until the  last day.    What is the trading…..? Trading is the buying or selling of goods and services from a particular geographical area or location. In order word Trade is the exchange of goods and services from a particular to another geographical area or location. People do trading because of necessities that make people in regards feeding, sheltering, clothing, housing, and vehicling.etc In other word trade (Muamalat) literally means transactions‟ despite the fact that trade technical clue, is any method of mutual transactions held between among us to solve their daily needs, especially in matters relating to trade and business. Trade is a societal relationship which consists of several non-economic and economic activities.

The general ruling regarding the legality of trade transaction

                                   Firstly, the universal ruling concerning the legality of trade transaction, assurance of trade permissibility Islam is through the evident derived from the glorious Quran, the Sunnah of prophet (S.A.W), accordant with the agreement of Muslim scholars and analogical deduction.

                                    As Allah (S.W.T) had said in the glorious Quran that:

“He has prohibited Riba but permitted trade…..” (Quran: Al-Baqarah: 275)

                                    From this verse we say that Allah (S.W.T) has legalized trade transaction for the all Humanity and also mention in the same surah.

“There is no blame upon you for seeking bounty from your Lord [during Hajj]….” (Quran: Al-Baqarah: 198)

                                    Furthermore the beloved prophet (S.A.W) said:

“The seller and the buyer have the right to keep or return good as long as they have not parted. If both parties speak the truth and point out defects and qualities (of the goods), then they will be blessed in their transaction. But if they tell lies or hide something, then the blessing of their transaction will be destroy.” (bukhari)

                                   There are no disagreement between the Muslim scholars regarding the permissibility of trade in its generality. From the point of views analogical deduction, trade transaction are permitted because people needs are inter-reliant for that reason they allowance nothing for nothing but most be for something. As people wouldn’t give their goods, items or money for nothing. The wisdom behind that necessitates the acceptability of trade in order to enable people to get their basic needs. 

Secondly, The Prohibited and permissible trade transactions in Islam.

1.      It not permitted to buy or sell or do any other worldly activity after the second Adhan for Jumma Prayer.

2.      The town dweller is forbidden to trade on the behalf of desert dweller.

3.      No transaction or worldly activity after the prayer has been pronounced.

4.      Not permitted to sell something that is used to disbelieving in Allah. Like selling juices used for making intoxicant or weapons used to kill Muslims or mass destructions.

5.      It not permitted to cancel sales of other (offering cheaper than others to cancel the sale)

6.      It not permitted to terminate the purchase of others (bid higher price than others to outbid)

                                 First of all I will the prohibited trading transaction Islam elements are forbidden to trade in or impressible for eating.  It is not permitted to a Muslim upon to whom the Jumma Prayer is compulsory to  buy or sell or do anything pertaining the worldly activity after the Caller has call the second Adhan. Allah (S.W.T) has said:

                                          “O you who have believed, when [the adhan] is called for the prayer on the day of Jumu’ah [Friday], then proceed to the remembrance of Allah and Leave trade. That is better for you, if you only knew.” (Quran: Al-Jumu’ah”)

As Allah (S.W.T) the exalted has prohibited trade whenever the time for prayer Jumu’ah has reach all the musilim should let go of any kind of transaction they involved in. furthermore, is not that but all the five dialing prayers. We should leave any worldly things and answer to the call of Allah (S.W.T) after the second call as soon as possible.

                                    Secondly, the town dweller is forbidden to trade on the behalf of desert dweller. As stated in the Hadith of Anas bin Malik that:

“We were forbidden that a town dweller should sell goods of a desert dweller” (bukhari) from this hadith clearly we learn that Town dweller cannot represent desert dweller in transaction e.t.c

The permissible transaction in Islam

The transactions that are permissible in Islam or conformity with shariah or Islamic injunction. Therefore those kind of transaction or trading is allowed to be traded in.

1.      The Salam [Sale of payment in Advance]

2.      The Mortage Transaction

3.      Mudarabah (Speculative) Partnership e.t.c

4.      The Murabaha Transaction

                      Firstly, Salam is define as the payment in Advance with postponing the receipt of the sold. Item transaction of Salam [Sale of payment in Advance] is permitted in Islam as Allah (S.W.T) has stated in the glorious Quran:

“O you who have believed, when you contract a debt for a specified term, write it down…” (Quran: Al-Baqarah: 282 )

                                  Secondly The Mortage Transaction, in definition mortage is the   Security for the debt contrary to the article that recover it cost; if any default occurred regards to fulfilment of the promised.

As Allah (S.W.T) says in the glorious Quran:

“….And if you are on a journey and cannot find a scribed, then a security desposite [Should be] taken…” (Quran: Al-Baqarah: 283)

                                 Furthermore, Mudarabah (Speculative) Partnership. This is the kind of partnership when somebody give the amount of money to another person to invest it and later they share the profit according to the agreement. As Allah (S.W.T) may He be exalted had mentioned in his glorious Quran:

“….And others traveling throughout the land seeking [something] of the bounty of Allah….” (Quran: Al-Muzzammil: 20)

Thirdly, I will like to discuss the concept of ownership and possession in Islam.

                                 Firstly, the concept of ownership and possession is Islam is that before the seller, sell anything of his goods has to fully received it and be his possession before start selling it to the consumers or buyers and Ownership and possession in Islam as agree among the Muslim scholars that it is not allow to purchase or sale anything which is incomplete before be in your possession or its measured, weighed, and counted by cubit.  As Rasullullah (S.W.T) said:

“He who buy a foodstuff should not sell it he has received it with exact full measure.” (Al-Bukhari)

In another Hadith narrated my Imam Ahmad that the prophet (S.A.W) said?

“When you buy something you should not sell it until you have completely received it.” (AL-Bukhari)

“……It is not in his possession, then to go and buy it. Rather what he must do is delay the sale until he has bought it and it has been transferred into his possession……..” (Majmoo‘ Fataawa ash-Shaykh Ibn Baaz 19/52, 53)

The Things that make trade transactions in Islam

                                    According to the majority of the Ulama or Scholars of the muslim Ummah all of them agree that for trade to be possible has to be in conformity with what shariah outline.

1.      There must be Mutual Consent in transaction to take place.

2.      Both the individual must be free, sound, being sane, reached puberty, and legally accountable for the transaction.

3.      The seller must be the owner [of the commodity or the money] or being the representative of the owner.

Allah (S.W.T) says concerning about Mutual Consent in transaction that:

“….but only [in lawful] business by mutual consent…” (Quran: An-Nisa: 29)

Prophet (S.W.T) has concerning about the owner must be:

           “Do not sell what you do not have [possess].”  Scholars agree that one cannot sell he those have in his possession.

                                In conclusion, Trading in islam has to be conformity with shariah in regards to the prohibitions and what is permissible is for the betterment of us the muslim, and understanding of the legality of it; without trade in something we don’t possess and make sure it start with mutually, sane, accountable and in be possession of it.

Bibliography

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AL-Bukhari. (n.d.). Hadith of Trade ( Book 34, ed., Vol. Volume 3).

Al-Bukhari. (n.d.). Narrated Ibn Umar (Book 34 ed., Vol. Volume 3).

al-Munajjid, S. M. (2018, June 01). islamqa.info. Retrieved from Islam Question and Answer: https://islamqa.info/en/160559

bukhari, s. (n.d.). book of sale and ttrade. (b. o. ttrade, Ed.) Hadith Narrated/Authority of Hakim bin Hizam. Retrieved May 30, 2018

Concept of Ownership in Islamic. (n.d.). Retrieved from The Law Study: /Concept of Ownership in Islamic Jurisprudence - The Law Study.htm

Majmoo‘ Fataawa ash-Shaykh Ibn Baaz 19/52, 53. (n.d.).

Quran: Al-Baqarah: 198. (n.d.).

Quran: Al-Baqarah: 275. (n.d.).

Quran: Al-Baqarah: 282 . (n.d.).

Quran: Al-Baqarah: 283. (n.d.).

Quran: Al-Muzzammil: 20. (n.d.).

Quran: an- Nur: 36-38. (n.d.).

Quran: An-Nisa: 29. (n.d.).

Trade transactions. (2012, January 25). Retrieved from slamweb.ne: http://www.islamweb.net/en/article/175045/trade-transactions