Etiquettes on business transactions

CategoriesTrade, Business & All Things Money [476]

Fatwa ID: 01337

Answered by Mufti Mohammed Tosir Miah

Question:

Etiquettes on business transactions

Answer:

Bismillah

In the name of Allah, the most Beneficent, the most Merciful.

  1. The avoidance of excess profits.  All religions prohibit excessive taking of profit from buyers as forms of cheating.  However, a moderate degree of taking profits is allowed otherwise all trade would cease.

  2. Truthful and complete disclosure of information.  The seller must give full and truthful information about the product, including its type, origin and cost.

The Prophet of Allah ṣallallāhu 'alayhi wa sallam (peace and blessings of Allāh be upon him) has said:

“All merchants are resurrected on the Day of Judgement as sinners, except those who feared Allah, treated their customers well and were truthful.”  (Sunan Tirmizi p.229 v.1)

  1. Ease of conduct.  The seller and buyer should not be too harsh in their conditions or insist on prices too high or too low.  Saaiduna Jabir Radiallahu Anhu narrates that the Prophet of Allah ṣallallāhu 'alayhi wa sallam (peace and blessings of Allāh be upon him) said “Allah is merciful to the man who is easy when he sells, when he buys and when he collects his loans.”  (Sahih Bukhari)

  2. Avoid taking oath, even if truthful.  It is recommended not to take oath on Allahs’ name, since it is disrespectful and unworthy to use his name in any sale.  Saaiduna Abu Hurairah Radiallahu Anhu narrates that the Prophet of Allah Sallallahu Alahi Wasalam said, “Swearing destroys the goods and wipes out their blessings.”   (Sahih Bukhari p.279 v.1)

  3. Frequent paying of charity.  It is recommended that a merchant pays charity often to atone for any cheating or poor conduct he may have committed.  Saaiduna Qays IbnAbi Ghurza raḍyAllāhu 'anhu (may Allāh be pleased with him) narrates that the Prophet of Allah ṣallallāhu 'alayhi wa sallam (peace and blessings of Allāh be upon him) said, “O Merchants, the devil and sins are present at each sale, so purify your sales with charity.”   (Sunan Tirmizi p.229 v.1)

  4. Documentation and witnessing of all debts.  It is desirable that all contracts and loans are written. 

(Extracted from Fiqh Al Islam Wa Adillatuh p.7-p.8 v.1)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.

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