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Islam and Business

Alhamdulillah Allah Ta’laa has guided us to this beautiful deen of Islam which is complete and amazing therefore we say

الۡحَمۡدُ لِلّٰهِ الَّذِىۡ هَدٰٮنَا لِهٰذَا وَمَا كُنَّا لِنَهۡتَدِىَ لَوۡلَاۤ اَنۡ هَدٰٮنَا اللّٰهُ‌ ‌ۚ


All praise to Allah who has led us unto this. And we were not to find the way, had Allah Ta’laa not guided us

Islam is a complete way of life with rituals from the time one rises up until the time one retires to bed. Correct sound knowledge is required in every sphere and when this knowledge which is within the laws of Islam is applied then this becomes a form of worship

An example of this is in the verse of the Quraan :

أَعـوذُ بِاللهِ مِنَ الشَّيْـطانِ الرَّجيـم

بِسْمِ اللّٰهِ الرَّحْمٰنِ الرَّحِيْمِ

يٰۤاَيُّهَا الَّذِيۡنَ اٰمَنُوۡۤا اِذَا نُوۡدِىَ لِلصَّلٰوةِ مِنۡ يَّوۡمِ الۡجُمُعَةِ فَاسۡعَوۡا اِلٰى ذِكۡرِ اللّٰهِ وَذَرُوا الۡبَيۡعَ‌ ؕ ذٰ لِكُمۡ خَيۡرٌ لَّـكُمۡ اِنۡ كُنۡتُمۡ تَعۡلَمُوۡنَ


O you who believe, when the call for salah (prayer) is proclaimed on Friday, hasten for the remembrance of Allah, and leave off business. That is much better for you, if you but know.

                                                                                             (Quraan 62 – Al-Jumu’a – Ayah 9)

We would just like to highlight the word البيع in the above mentioned verse which means trade

From this verse we come to know that man is encouraged to make effort in the light of providing for his dependents during the day however when it is time to proceed to the Masjid he does not remain tied up in his business and once he fulfills this duty then he is given permission to go seek  the فضل (bounty) of Allah Ta’laa as, Our Creator Ar- Rawziq mentions in the verse below

فَاِذَا قُضِيَتِ الصَّلٰوةُ فَانْتَشِرُوۡا فِى الۡاَرۡضِ وَابۡتَغُوۡا مِنۡ فَضۡلِ اللّٰهِ وَاذۡكُرُوا اللّٰهَ كَثِيۡرًا لَّعَلَّكُمۡ تُفۡلِحُوۡنَ


“Then once the salah is completed, disperse in the land, and seek the grace (sustenance) of Allah. And remember Allah much, so that you may be successful.”   

  ( Quran-62- Al-Jumu’a – Ayah 10)

However one should not become oblivious of Allah Ta’laa and the laws of Islam during trade and commit sin. One major sin that most likely happens during trade which is totally forbidden referred to Bay’ Baatil- The Invalid Trade which could be emphasized as that transaction which is completely void even if one proceeded with it

From the above verses we explained Bay’ and now we have added another term to Bay’ and that is Baatil(Invalid) 

What is meant by Bay’ Baatil ?

When either exchange in the transaction or both are haraam and has no value then this renders the sale baatil eg a corpse, a free person or blood. In Islam alcohol, carrion and pig are all haraam therefore no value is attached to it

This transaction which is not considered in Shariah regarded as useless and regarding which one will say that it is as if the person did not even purchase the item and the seller did not even sell it, is referred to as Baatil(invalid)

The Ruling

Such a transaction is that the person who purchased such an item does not become the owner and that it is still under the ownership of the seller. Therefore the buyer cannot consume it or give it to anyone or utilize it in the slightest.

As for the transaction which has taken place but some sort of shortcoming is found in it, then that renders the transaction Faasid(improper).

The ruling of a faasid transaction is as long as the item does not come into the possession of the buyer, ownership of that item will not be transferred to him. Once possession has taken place, it will fall under his ownership but not halaal and tayyib therefore it is not permissible for him to consume and infact wajib(necessary) to cancel this transaction. If the person persists on selling it, he will be commiting a sin. However it will permissible for the second buyer to consume or utilize

If a person sold it for a profit than this profit will have to be given in charity and not permissible to use for personal usage

Examples of Baatil (Invalid) And Faasid (Improper) transactions

A person is selling the fish that is in a public lake without anyone nurturing these fish, then this would render the transaction baatil. As soon as the fish is caught then the one who catches it, becomes the owner and now can be sold

Another example is the milk that is still in the udders cannot be sold before it can be milked, if it is then this renders the transaction baatil

The young of an animal that is still in the womb of the mother cannot be sold before it is born, rendering such a transaction baatil. However it is permissible to sell the entire animal. But if the owner says “I am selling this goat to you but the kid that is in the womb belongs to me. Once the goat gives birth to that kid, you will have to give it to me”, then such a transaction is faasid

عَنْ أَبِي هُرَيْرَةَ أَنَّ رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ قَالَ إِنَّ اللَّهَ حَرَّمَ الْخَمْرَ وَثَمَنَهَا وَحَرَّمَ الْمَيْتَةَ وَثَمَنَهَا وَحَرَّمَ الْخِنْزِيرَ وَثَمَنَهُ

Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said, “Verily, Allah has forbidden wine and its sale. He has forbidden carrion and its sale. He has forbidden swine and its sale.”

( Sunan Abī Dāwūd)

The punishment for those who were persistent in breaking the law enforced upon them by Allah Ta’laa is mentioned below:

So, for the transgression of those who became Jews, We prohibited for them good things which were made lawful for them earlier and for their preventing (people) frequently from the way of Allah,

and for their taking riba (usury or interest) while they were forbidden from it, and for their eating up of the properties of the people by, false means. And We have prepared, for the disbelievers among them, a painful punishment”                                                                      (Quran Chapter 4 – An-Nisaa – Ayah 160-161)

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Written by Abdullah


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