Assalama Aleikum,

In continuation with our respected brother & Sheikh Tawfique Chowdhury’s  Real Deal series, we carry on the topic with Wealth & it’s types. Although the notes are pretty straight forward Alhamdulillah, this bit may need reading through a 2^nd time just for further clarification Inshallah.

Wealth and its types

Legal definition of wealth:

Anything to which people have an inclination towards, and is permitted in the Shariah.

Note:

Anything that is not permissible to benefit from, such as alcohol or dead meat or pork or interest money, then they are not considered a valid commodity in Islam.

There can be many types of rights upon any valid wealth:

1. The right of the owner: Thus it is not permissible to take the commodity away except by his or her will. It is also for this reason that the punishment for stealing is so severe.
2. The right of Allah: In effect, all wealth is from the property of Allah . When Allah has allowed us to use his property, then it can only be within the guidelines specified in the Shariah.
3. The right of the community: This entails putting the greater benefit of the community above individual benefit.

We can look at the types of wealth by way of:

1. Its nature.
2. Possibility of ownership of the property.
3. Its specificity.

1. A. By way of its nature

Wealth can be either

• Price or money, this is of two types: Gold & Silver
• The item that is priced or valued. This of two types: Non-transferable commodity (properties and estates) & transferrable commodity (other than properties)

Benefits of knowing this division

There are numerous benefits from knowing this division:

• The transferable commodities should be sold off before the non-transferable ones at the time of bankruptcy.
• The rights of neighbours are to be catered for in non-transferable commodities rather than transferable ones.
• The scholars have complete consensus about the permissibility of giving a non-transferable commodity as an endowment, however they differed about the permissibility of giving a transferable commodity as an endowment.
• Pre-emption is to ne respected as far as non-transferable commodities are concerned. There is no such thing for transferable commodities, except if they are jointly owned.

Exchange of wealth

Money for money = Monetary exchange

Money for an item of value = General sale

Item of value for another item of value = Barter

1. B. By way of possibility of ownership of the property

That which cannot be owned

Such as those properties that have general benefit for all, such as roads, alley paths between properties, wells, bridges etc… as long as the benefit is for all.

That which shouldn’t be owned except by an express reason from the shariah

Such as properties that are endowments for the poor.

That which can be owned

These are all commodities that do not fit into the above two types.

1. C. By way of its specificity

A commodity that is bought or sold, may be either:

• Specific
• Non-specific and remains in one’s liability

Specific commodity

The deal was contracted on a specific commodity. (For example, I will sell you this copy of Sahih Al-Bukhari that I have in my hand.)

Non-specific commodity

The deal was contracted on a commodity that is non-specific that remains a person’s debt or liability. (For example, I will sell you a copy of Sahih Al-Bukhari printed by ….. in the year ….. available in colour…..

What is the benefit of knowing whether the deal has been contracted upon a specific or a non-specific commodity?

The benefit of knowing this, is working out what the solution should be if a defect is found in the product. So, if the defect is found in a product where the deal was contracted on:

• A specific commodity: Then the seller must return the price that was paid and take back his product from the buyer.
• A non- specific commodity: Then the seller has the option of either returning the price or giving him another product similar to it in description (that is free of the defect). The buyer cannot force the seller to give his money back. Rather, if the seller wishes to give him another copy of the book, then he is obliged to take it.

Exchange of commodities by way of specificity

A commodity that is specific or non-specific may be bought and sold either one of the two ways:

• Transfer of the commodity is finalized immediately
• Transfer of the commodity is finalized at a future time. Until then, it remains on credit.

Inshallah we will posting more notes, so please keep checking our website.

Wassalamu alaykum.

This is a continuation of our ‘ Fiqh of Business Transactions’ series, originally taught by Sheikh Tawfique Chowdhury in his Real Deal course held on  Birmingham last year.

In the first part of this compilation we went through a prelude of Business Regulations in the shariah. We began with ‘Pillars of a business transactions’ and now we would like to continue on from where we left off Inshallah by looking into ‘The goals & purposes of shariah in Business transactions’ the second of the 10 matters mentioned in part 1 of this series.

The 3 main goals:

1. All business is permissible.

This is from the most important goals. The Shariah permits most contracts and only prohibits those few that fulfil certain conditions. Therefore every new contract is permissible except those that contain features or conditions in it that make it impermissible.

2. Prevention from oppression.

Allah has not decreed any oppression in His legislation, nor does He want us  to oppress each other, whether it is by mutual consent or coercion. (for example, the prohibition of selling that which is uncertain in its quality or quantity.)

3. Prevention of conflicts and disputes

Allah wishes to remove any matter that may cause us to have a dispute. (for example the prohibition of proposing to a sister for marriage, over the proposal of your brother.)

How does the Shariah legislate in a business?

It does so by either one of two ways:

1. By prohibiting the transaction
2. By allowing the transaction with certain conditions or within certain limits.

Many a times, a contract may have some sort of oppression in it, or may generally lead to conflicts and disputes, however it is still allowed due to the greater benefit that the Shariah perceives in allowing it.

Inshallah this will give us something to reflect on until the next post.

Wassalamu alaykum.

At The Course

A while back we mentioned that a member of our Team attended a 2 day course  called ‘The Real Deal’ focusing on ‘The Fiqh of Business Transactions’ taught by Sheikh Tawfique Chowdhury. We would like to carry on sharing with you the notes we took during this fantastic eye opening course and we continue the  series with the “Fiqh of Business Transactions In Islam”, inshallah.

The study of business regulations in the Shariah

A prelude to the study of the regulations regarding business entails the study of the following ten matters:

1. Pillars of a business transaction.
2. The goals and purposes of Shariah in business transactions.
3. Commodities and its types.
4. Trading competence.
5. Conditions of business transactions.
6. Conditions in business transactions.
7. Choice in contracts.
8. Contracts and its types.
9. Defects in contracts.
10. Profit and what is permissible from it.

Pillars of business

There are 3 main pillars;

1. The buyer
2. The seller
3. The commodity and its exchange

All of the following forms of exchange are permissible in Islam

• The buyer and seller are physically present and agree verbally to the contract.
• Silent transaction: where the money and the product change hands without verbal agreement. Such a contract is permissible according to the majority of the scholars of Islam.
• Modern methods of transaction: via the internet, phone, SMS, fax, telex, TV etc… take the ruling of the non-verbal silent transaction in permissibility

Ibn Taymiyyah rahimahullah says:
“it is not obligatory upon people to stick to only certain terminologies for the purpose of contracts. It is not impermissible for them to make a contract with terminologies that others use as long as the terminologies that are used pertain to their intended meaning – even if certain phrases are preferred over others.” [AlQawaid an-Nooraniyyah Al-Fiqiyyah (2/291)]

To be continued inshallah….

Wassalamu alaykum

Showing Kindness to the Poor

Showing kindness and mercy to the poor and needy in society is another way a person can increase his sustenance and wealth. This is because Allah ’s blessings shower upon a society due to its poor and helpless people among them.

The Prophet SAW said: “ Find me amongst your weak, because the only reason that you are provided sustenance and aided in victory is because of your weak!” Reported by Imam Ahmad in his Musnad (5/198).

Mulla ‘Ali Qari said:
“Find me amongst the weak’ means to search for the prophets pleasure by being kind and merciful to your poor’” Mirqat al-Mafatih (9/84)

The primary reason that Allah provides for us is due to the presence of the weak and poor so by being kind to them Allah will bestow a wealth to us.

Therefore those who wish to achieve the help of Allah should be kind to the weak and down-trodden in society even if it’s with a smile. For those of us that can’t show our kindness or mercy financially can show it in compassion and love by not looking down upon them with arrogance for verily its not status and wealth that make us better than one another but only the Taqwa of Allah .

And Allah knows best!

From “15 ways of increasing your earnings. From the Quran and Sunnah” by Abu Ammar Yasir Qadhi.  Publishing and distribution by Al-Hidayah.

To read more about other ways of increasing one’s wealth go to this section.

Islamic Law Regarding Business

Allah says:

Deal not unjustly, and you shall not be dealt with unjustly. [Al Qur'an 2:279]

O you who believe! When you deal with each other in transactions involving future obligations in a fixed period of time, reduce them to writing. Let him who incurs the liability dictate, but let him fear his Lord God, and not diminish aught of what he owes.”

So, Allah tells us that the most important rule when it comes to transactions is that it should be writen down in a contract.  Allah speaks about loans in this ayah and by having a contract it will, Inshallah, allow us to avioid many of the disputes and conflicts that may occur between one another.

Taken from the book entitled: Entering into a partnership with a person who deals with bribes and riba by Muhammad Salih Al-Munajjid

If a person earns money in haraam ways such as riba, bribes, stealing and cheating, etc., and his wealth is a combination of halaal and haraam, then it is valid to do business with him, buying and selling and entering into partnerships, but it is makrooh. If it is known that the product in which the trade is to be done is haraam in and of itself, then it is not permissible to enter into a partnership with him or work with him in that business.

Ibn Qudaamah said in al-Mughni (4/180):

“If he buys from someone whose wealth includes both haraam and halaal, such as an unjust ruler or someone who deals in riba, if it is known that the item sold is from the halaal portion of his wealth, then it is halaal, but if it is known that (the item) is from the haraam portion, then it is haraam.

If it is not known which it is, then we regard it as makrooh, because of the possibility that it may be haraam, but the sale is not invalid, because of the possibility that it may be halaal, whether the haraam element is small or great. In this case it is a doubtful matter. The lesser or greater the haraam element, the greater or lesser the doubt.”

It says in Haashiyat Qalyoobi wa ‘Umayrah (2/418):

“Partnerships are valid even if they are makrooh, such as a partnership with a dhimmi (a non-Muslim living under Muslim ruler), one who consumes riba and one whose wealth is mostly haraam.”

In Haashiyat al-Dasooqi (3/277) it says:

“Know that if a person’s wealth is mostly halaal and a small part of it is haraam, the correct view is that it is permissible to deal with him, lend money to him and eat from his wealth as Ibn al-Qaasim said, contrary to the view of Usbugh who says that that is haraam. But if a person’s wealth is mostly haraam and a small part of it is halaal, the view of Ibn al-Qaasim is that it is makrooh to deal with him, lend money to him and eat from his wealth. This is the correct view, contrary to the view of Usbugh who says that that is haraam. But if a person’s wealth is all haraam, this means that it is not allowed to deal with him, lend money to him or have any dealings with him, financial or otherwise.”

Download here

Buying and selling is undoubtedly permissible in Islam however, Allah and His Prophet (saw) have told us to be mindful and honest in our dealings:

Allah say in The Glorious Qur’an

And Allah has made business transactions permissible (Quran 2.275)

And take witnesses when you buy and sell  (Quran 2.282)

Except transactions done based on mutual agreement between you (Quran 4.29)

There is no harm upon you to seek after the bounties from your Lord (Quran 2.198)

A transaction between Muslims and between Muslims and non Muslims are an extremely important part of Deen and as such, requires our full attention lest we fall into error.

Buying and selling on eBay and other ecommerce websites should not remove the obligation of honesty and taqwa from our actions.  It is a lot easier to fool or be fooled online because transactions do not occur face to face and many of us have unfortunately fallen into this trap.

Our beloved Prophet Muhammad said:

Whosoever sells a defective product without disclosing its defect to the purchaser, shall earn the permanent anger of Almighty Allah and the angels continuously curse such a person

Muhammad Sayed Adly has spoken on this subject in a really interesting talk on the fiqh of business transactions.  Listen Here

Two beautiful hadith about conducting business in Islam

The Prophet Muhammad said:

An honest and truthful businessman shall be in the shade of the throne of Allah . (Al-Isbihani)

Prophet Muhammad   said

Whosoever sells a defective product without disclosing its defect to the purchaser, shall earn the permanent anger of Almighty Allah and the angels continuously curse such a person.