By applying the following principles, we can determine whether a transaction involves Ribā or not:
PRINCIPLE 1:
إذا بيع الربوي بجنسه، اشترط فيه شرطان: التقابض والتماثل.
If a ribawi item is sold for its own kind, two conditions must be met:
1. Immediate Exchange (التقابض): Both parties must take possession of their respective items during the transaction session before parting.
2. Equal Measure (التماثل): The exchanged items must be equal according to the Shari'ah standards (i.e., weight for weight or volume…
When examining the first group (gold & silver), the علة is clear = الثمينة (currency/monetary nature). As such, modern day paper currency can be analogised with them, as most contemporary scholars hav
As for the second group (wheat, barley, date, salt), where there is significant disagreement and no clear علة, Qiyās cannot be confidently applied.
As a result: The Ribawi items are:
Group 1: Currency
1. Gold ذهب
2. Silver فضّة
3. Paper currency (based on Qiyās)
Group 2: Food Items
3. Wheat ٌشَعِير
4. Barley بُرّ
5. Dates تَمْر
6. Salt مِلْح
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المسألة الثالثة: أنواع الربا
Types of Ribā
1st…
- Its prohibition is a mercy to people, as it involves taking the wealth of others without offering anything of value in return. The usurer benefits from others' money while providing them with no ben
- Ribā leads to the inflation of wealth at the expense of impoverishing others, particularly the poor.
- It encourages laziness and idleness, diverting individuals from engaging in productive, lawful, and beneficial economic activities.
- Engaging in Ribā severs acts of kindness among people, closes the door to good loans, and allows a class of usurers to dominate the wealth and economy of a nation.
- Ribā is…
5. The item must not be from أموال الربوبية which require hand to hand exchange. We will discuss this further in the next subchapter inshaAllah.
ADDITIONAL NOTES:
1. The seller does not have the right to retain ownership of the sold item after the sale. For instance, he is not allowed to say: "Ownership will only transfer to the buyer once all installments are paid." However, it is permissible for the seller to stipulate a restriction on resale, meaning that ownership transfers to the buyer, but the buyer is prohibited from selling the item until all…
5. The commodity must be in the seller's possession at the time of concluding the sale contract, meaning the seller must own the goods (التملك), have them in their possession (القبض), and be able to d
IMPORTANT NOTE:
If a binding contract is made before the financial institute owns the car, this is an impermissible and invalid transaction because it involves selling what one does not own. On the other hand, if the agreement made initially is not a contract but merely a promise to purchase, then the process becomes permissible.
The condition here is that when the item is attained, a new contract must be made…
Kitāb Al-Buyoo’ (Fiqh Al-Muyassar)
Lesson 5 Notes
(21 Jumada Ath-Thani 1446 H - 22/12/24)
Continuation...
المسألة السابعة: الإقالة في البيع
Rescission in Sale (Al-Iqālah)
If the sale is completed and there is no khiyār, it becomes binding, and neither party has the right to rescind it except by mutual consent. Rescission by mutual consent is called "Iqālah." Thus, Iqālah is the cancellation or annulment of a…
Similarly, Zayd ibn Thābit (may Allāh be pleased with him) reported that the Messenger of Allāh ﷺ forbade selling goods in the same location where they were purchased until traders move them to their
Thus, a buyer must take full possession of an item before reselling it.
NOTE: Ibn Qudamah rahimahullah said in Al-Mughni:
«قبض كل شيء بحسبه، فإن كان المبيع دراهم أو دنانير، فقبضها باليد، وإن كان ثيابا فقبضها نقلها، وإن كان حيوانا، فقبضه تمشيته من مكانه، وإن كان مما لا ينقل ويحول، فقبضه التخلية بينه وبين مشتريه لا حائل دونه، لأن القبض مطلق في الشرع، فيجب الرجوع فيه إلى العرف»
"The manner of taking possession…
﴿وَتَعَاوَنُوا۟ عَلَى ٱلۡبِرِّ وَٱلتَّقۡوَىٰۖ وَلَا تَعَاوَنُوا۟ عَلَى ٱلۡإِثۡمِ وَٱلۡعُدۡوَ ٰنِۚ﴾
"And cooperate in righteousness and piety, but do not cooperate in sin and aggression." [Surah Al-Māʾidah: 2]
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3⃣. بيع المسلم على بيع أخيه
Selling Over Another’s Sale
An example of this is when someone says to a buyer who has purchased an item for a set price, “I will sell you the same item for a lower price,”…
Any transaction involving harm is prohibited
Examples include:
- Selling an animal intentionally kept unmilked to deceive the buyer about its milk production (المُصرّاة) – if returned, it must be returned with a (صاع) of dates.
- Engaging in artificially inflating the price of goods to deceive buyers (النجش)
- Intercepting traders before they reach the market (تلقي الركبان)
- A local resident selling on…
Kitāb Al-Buyoo’ (Fiqh Al-Muyassar)
Lesson 4 Notes
(13 Jumada Ath-Thani 1446 H - 14/12/24)
Continuation...
المسألة السادسة: البيوع المنهي عنها
Prohibited Transactions
TYPES OF SALES:
Sales are classified into two main types:
1⃣. Permissible Sale (البيع المباح)
This refers to a sale that meets the necessary conditions and pillars of a valid transaction while avoiding any prohibitions. This is the default…
The item sold must be known to both the buyer and seller either through:
(1) direct observation, or
(2) a clear description that distinguishes it from others.
SPECIFYING THE ثمن:
The price of the item must be clearly known by specifying its value and currency at the time of the transaction, such as a price tag.
Ambiguity (جَهالة) relating to the item or price is a type of gharar. Thus, it is invalid to sell…
The Prophet (ﷺ) gave him a dinar to purchase a sheep. He bought two sheeps with the dinar, then sold one of them for a dinar and returned to the Prophet (ﷺ) with a dinar and a sheep. The Prophet (ﷺ) p
Point of evidence: This Companion purchased an additional sheep and sold it without prior permission from the Prophet ﷺ. However, the Prophet ﷺ validated the transaction through his subsequent approval.
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4️⃣. أن يكون المبيع مما يباح الانتفاع به
The Item Sold Must Be Permissible for Use
The item being sold must be something (1) lawful and (2) contain a beneficial use, such as food, drink, clothing, vehicles,…
However, it is considered unethical and can lead to disputes, harm, and exploitation.
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2️⃣. أن يكون العاقد جائز التصرف
Legal Capacity of the Contracting Parties
The parties must have the legal capacity to transact, meaning they must be:
1. بالغ = mature
2. عاقل = sane
3. حُرّ = free (not enslaved)
4. رشيد = prudent in managing their
affairs.
* These are the four conditions for someone to be deemed جائز التصرف!
EVIDENCES:
The evidence for البلوغ & الرشد is the saying of Allāh ﷻ:
{…
Kitāb Al-Buyoo’ (Fiqh Al-Muyassar)
Lesson 3 Notes
(7 Jumada Ath-Thani 1446 H - 8/12/24)
Continuation...
المسألة الخامسة: شروط البيع
Conditions for a Valid Sale
BENEFIT: Conditions of the sale (شروط البيع) Vs. Conditions in the sale (شروط في البيع):
1⃣. I(شروط البيع)I are established by the Shari'ah, whereas l(شروط في البيع)l are determined by one of the contracting parties.
2⃣. I(شروط البيع)l are essential for…
1. Price Manipulation (النجش):
(a) Overpricing (لمصلحة البائع): A seller conspires with others to artificially inflate the price during an auction, tricking the buyer into paying more than the market value. In this case, the buyer gains the right to revoke the contract.
(b) Underpricing (لمصلحة المشتري): A buyer conspires with others to suppress bids, leading the seller to accept a price significantly below market…
Khiyār Ash-sharṭ is NULLIFIED under the following circumstances:
1. Expiration of the Agreed Period
2. Buyer’s Action to Terminate: The buyer may voluntarily waive their right to revoke the contract during the option period.
3. Transfer of Ownership by buyer (not seller): If the buyer engages in any action that results in the transfer of ownership (e.g., selling the item or gifting it), their option right is voided.
________
3️⃣. خيار العيب
Option of Defect:
This option is…
However, Ibn al-Qayyim said [Iʿlām al-Muwaqqiʿīn, 4/29)]: “A man tells another person: Buy this house or this item from so-and-so for such-and-such a price, and I will give you a profit of such-and-such. But the buyer is afraid that if he buys it, the one who gave the order might change his mind and not want it anymore, and then he (the buyer) will not be able to return it. The solution is: he should buy it with a…
CASES WHERE KHIYĀR AL-MAJLIS IS NULLIFIED (aside from physical separation):
1. Express Waiver During the Meeting: Either party may explicitly state during the meeting, "I waive my right to khiyār al-majlis," thus nullifying their right. This must be a clear and voluntary declaration. The other parties right to Khiyār remains intact until they separate.
2. Mutual Agreement to Waive Khiyār: If, during the contract negotiation, both parties agree to waive the right of khiyār al-majlis by…
"And He has not placed upon you in the religion any difficulty." [Surah Al-Ḥajj: 78]
NOTE: For significant transactions involving large sums or deferred payments—where documentation and clarity are essential—it is HIGHLY recommended to document the agreement and have witnesses. This provides a reference in case of disputes between the parties.
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المسألة الرابعة: الخِيار في البيع
The Option of Withdrawal…
Kitāb Al-Buyoo’ (Fiqh Al-Muyassar)
Lesson 2 Notes
(6 Jumada Ath-Thani 1446 H - 7/12/25)
Continuation...
المسألة الثالثة: الإشهاد على البيع
Having witnessing in a Sale Transactions
Having a witness to sales transactions is مستحب (recommended) but not obligatory.
This is based on Allāh's statement:
﴿وَأَشۡهِدُوۤا۟ إِذَا تَبَایَعۡتُمۡ﴾
“And take witnesses when you make a sale.” [Surah Al-Baqarah: 282]
The…
This includes the seller, the buyer, and anyone acting on their behalf.
BENEFIT: There are five types of individuals who can act on behalf of the buyer or seller:
I1l الوكيل = agent
I2l الوصي = the executor in matters related to one-third of the estate after death,
I3I ناظر الوقف = the guardian of a waqf
I4I القاضي = the judge in matters concerning the legally incapacitated,
I5I الولي = the guardian of an…
2. This exchange involves one of three types of matters:
١. مال = tangible wealth
٢. دين = debt/deferred payment
٣. منفعة = service/benefit
3. These three types must be clearly specified in the contract. However, the manner of specification can vary:
١. مُعين بالإشارة
Items that can be directly pointed to, i.e. Physically present
٢. مُعين بالوصف
A particular item but it is not physically present at the time of transaction
٣. الموصوف غير المعين
A general…
Kitab Al-Buyoo' (Fiqh Al-Muyassar)
Lesson 1 Notes
(29 Jumada Al-Awwal 1446 H - 1/12/24)
After completing the 1st section of Fiqh (قسم العبادات), we move onto the next section (المعاملات) The fiqh of transactions/dealings.
كتاب المعاملات
The book of transaction
- There are different types of transactions, but the focus in this chapter is on financial transactions (المعاملات المالية).
DEFINITIONS:
- The term…