Regulations of Sales
The critical regulations surrounding sales that one should be aware of include the fact that legitimate sales involve the exchange of property for property with the intention of ownership transfer. According to the Quran, this practice is permissible as stated: (وَأَحَلَّ اللَّـهُ الْبَيْعَ وَحَرَّمَ الرِّبَا), establishing the fundamental nature of its legality. The essential elements of a sale comprise three components: the parties involved, namely the seller and the buyer; the subject of the transaction, which includes the item and its price; and the contract terms expressed through offer and acceptance or mutual consent. It is also important for both the buyer and seller to understand the conditions necessary for a valid sale, which include mutual consent, legal capacity of both parties to engage in selling and buying, and the seller’s ownership or authorization to sell the item in question. Various other conditions and specifications have been elaborated upon by scholars in this domain.
Permissible Sales in Islam
Permissible sales in Islam encompass a wide variety of forms and types, among which the following are the most well-known:
- Negotiated Sale: This involves the buyer negotiating the price of an item with the seller; if the seller agrees to the negotiation, the transaction proceeds.
- Transfer Sale: In this transaction, the seller states to the buyer: “I transfer this item to you for the price I paid.” If the buyer agrees, the sale is finalized.
- Markup Sale: Here, the seller presents the item to the buyer, states its original price, and indicates that it is being sold at an increased price, such as five or ten dinars more.
- Loss Sale: This is the inverse of a markup sale, where the seller discloses the purchased price and offers the item at a loss of, for instance, five or ten dirhams.
- Partnership Sale: The buyer may declare to another individual after taking possession of the item: “I share with you in this purchase, either half or a quarter.”
- Currency Exchange Sale: This type entails the sale of currency for currency under specific conditions.
- Barter Sale: This transaction involves one party selling an item to another in exchange for a different item, also known as an exchange sale.
- Deferred Sale: This involves selling an item for a specified price, with payment postponed to a later date.
- Auction Sale: A merchant publicly announces the sale of an item, concluding the sale with the highest bidder.
- Mutual Agreement Sale: In this case, the seller hands over the item to the buyer and accepts payment without any dispute regarding the item or its price.
- Future Sale: This sale refers to the transaction involving a described item for an upfront payment received at the time of contract signing.
- Option Sale: This grants both the buyer and seller the right to finalize or rescind the sale within a mutually agreed timeframe.
Prohibited Sales
Prohibited sales refer to those transactions expressly forbidden in Islam due to potential implications that affect their legitimacy, such as deception and fraud, or those that result in harm or injustice to either the seller or the members of the marketplace. The most notable examples include:
- Deceptive Sale: This involves artificially inflating the price of an item by a third party, in collusion with the seller, to mislead potential buyers into paying more than the item’s value.
- Interference Sale: In this context, one individual influences a seller not to sell to someone interested, enabling them to purchase the item at a higher price from the seller.
- Intercepting Travelers: This refers to individuals who approach merchants bringing goods from outside the city, misleading them about market conditions with the intent of purchasing goods at an underpriced rate.
- Hoarded Sale: This occurs when a seller deliberately withholds goods from the market to amplify demand and subsequently exploits the situation by raising prices.
- Fraudulent Sale: This involves deceitful practices that conceal the truth regarding price or the item being sold, including hidden defects in the merchandise, unjust pricing, or counterfeit money or goods.