KITAB AL-BUYU'
(THE BOOK OF TRANSACTIONS)
Honesty in commercial dealings is more strictly enjoined by Islam than by any other religion. It is because Islam is a religion which regulates and directs life in all its departments. It is not to be regarded, like the modern man's religion. as a personal, private affair, which has nothing to do with his economic and political life. It is not merely a body of dogmas or a bundle of rites and rituals; it is a practical code which governs life in all its spheres. Its laws are as effectively operative in our commerce and politics as in our domestic life and social relations. Islam censures political chicanery and economic exploitation as strongly as social excesses and individual dishonesty. Indeed, a true Islamic society is based upon honesty, justice and fraternity, and is absolutely intolerant of dishonesty in all its various forms. That is the reason why perfect honesty in business and truthfulness in trade are much emphasised by the Holy Prophet (may peace be upon him). It will not be an exaggeration to say that absolute honesty in business and commerce is really an Islamic concept. The Hindus and Jews were (and still, are) worshippers of the Mammon. Both of them have been mercenary nations, notorious for their greed. The pre-Islamic Christians. too, did not possess any high standard of business morality. It was Prophet Muhammad (may peace be upon him) who, on the one hand, urged his followers to adopt trade as their profession, and, on the other band, exhorted them to observe truthfulness and honesty in their business transactions.
Islam lays the greatest emphasis on Qat Haldl (food earned through lawful means). The pious among us believe that just as nasty food spolis our physical health, similarly. food earned through unlawful means spoils our spiritual and moral health. A man who liver on income derived through illicit means and fraudulent practices cannot be morally advanced and spiritually elevated. If we try to comprehend the exact, implications of the term Haram (unlawful) we can form an idea of the high standard of morality on which Islam wants us to conduct our business. And, if business is conducted strictly in accordance with the Islamic principles of commerce, there can be absolutely no scope for any kind of commercial dishonesty varying from the simplest and most glaring type of business fraud to the most cunning and subtle type of profiteering which is often masked under a semblance of honesty.
Islam is most vehement in its condemnation of commercial dishonesty. It denounced, in the strongest possible terms, all sorts of deceitful dealings and illegal profits. It has disallowed all transactions not based upon justice and fairplay The Holy Prophet (may peace be upon him), while reprimanding the dishonest dealer, said: "Laisa minna man gashshdna" (Whosoever deceives us is not one of us).
According to Imam Ghazali, a Muslim who makes up his mind to adopt trade as a profession or to set up his own business should first acquire a thorough understanding of the rules of business transactions codified in the Islamic Shari'ah. Without such understanding he will go astray and fail into serious lapses making his earning unlawful. No people in the world have ever attached so much importance to lawful trading as did the early Muslims, nor has any other nation evinced such a dread of unlawful trading as they did. That is why al-Ghazali said stress on a clear understanding of the rules and laws governing business transactions as a necessary prerequisite to adopting trade or business as a profession.
The Holy Qur'an has stressed the importance of fairness in business: "And, O my people, give full measure and weight justly, and defraud not men of their things, and act not corruptly in the land making mischief. What remains with Allah is better for you, if you are believers" (xi. 85-86).
In these words addressed by Hadrat Shu'aib to his people, the Holy Qur'an enunciates the fundamental principles of commerce as follows:
- To give just measure and weight.
- Not to withhold from the people the things that are their due.
- Not to commit evil on the earth with the intent of doing mischief.
- To be contented with the profit that is left with us by God after we have paid other people their due.
We are told in these verses that commerce can flourish under conditions of peace and security. The people are, therefore, warned not to disturb the peace of the land so that there is a free and untrammelled trade between different parts of the world. In commercial relations we are expected to be absolutely just and honest, liberally giving other people their due. We are not to be guilty of selfish greed and not to indulge in profiteering; and we are told that the lawful profit which has God's blessings is the one that we are able to make through perfectly honest dealings with others. The injunctions contained in these Qur'anic verses and found elsewhere in the Holy Book close the door of all dishonest and unjust transactions. We should not forget that justice is a master virtue. If we give others just measure and just weight that tantamounts to saying that we should be fair and just in our dealings.
A careful study of "Kitab al-Buyu`" (the book pertaining to business transactions) will reveal the fact that the Holy Prophet (may peace be upon him) based business dealings strictly on truth and justice. He has strongly disapproved all transactions which involve any kind of injustice or hardship to the buyer or the seller. He wanted that both, the buyer and the seller, should be truly sympathetic and considerate towards each other. One should not take undue advantage of the simplicity or ignorance of the other. The seller should not think that he has unrestricted liberty to extort as much as possible from the buyer. He has to be just; he should take his own due and give the buyer what is his.
Islam, which condemns every kind of injustice and exploitation in human relations, wants its followers to conduct business in a sublime spirit of justice tempered with human kindness. The conduct of the seller in a transaction should be characterised not only by Insaf (justice), but also by Ihsan (magnanimity). "God will forgive the sins of a Muslim who absolves a fellow-Muslim from a sale-contract not liked by the latter," says the Holy Prophet (may peace be upon him).
All transactions should be based on the fundamental principle of "Ta'auanu ala birri wa't-taqwa" (mutual co-operation for the cause of goodness or piety). A transaction not based upon this sound principle is not lawful. Unlawful transactions are motivated by lust for money and an ignoble desire to build up prestige. Islam strikes at the root of the passion for money and suggests a different yardstick to measure the prestige of a person. The Holy Qur'an, on the one hand, condemns hoarding and the excessive love for wealth, and, on the other, declares virtue and piety to be the criterion for determining a person's worth. "Inna akramakum `ind-Allahi atqakum" (The noblest in the eyes of God is the most pious among you). Thus does Islam minimise in every possible way the temptation to illegal trade and traffic. Let us now take note of the forms of business transactions which have been prohibited in Islam. The Holy Prophet (may peace be upon him) has not only disapproved of certain forms of business transactions, but has also laid down some basic conditions that should be fulfilled in every transaction if it is to be lawful.
Islam lays the greatest emphasis on Qat Haldl (food earned through lawful means). The pious among us believe that just as nasty food spolis our physical health, similarly. food earned through unlawful means spoils our spiritual and moral health. A man who liver on income derived through illicit means and fraudulent practices cannot be morally advanced and spiritually elevated. If we try to comprehend the exact, implications of the term Haram (unlawful) we can form an idea of the high standard of morality on which Islam wants us to conduct our business. And, if business is conducted strictly in accordance with the Islamic principles of commerce, there can be absolutely no scope for any kind of commercial dishonesty varying from the simplest and most glaring type of business fraud to the most cunning and subtle type of profiteering which is often masked under a semblance of honesty.
Islam is most vehement in its condemnation of commercial dishonesty. It denounced, in the strongest possible terms, all sorts of deceitful dealings and illegal profits. It has disallowed all transactions not based upon justice and fairplay The Holy Prophet (may peace be upon him), while reprimanding the dishonest dealer, said: "Laisa minna man gashshdna" (Whosoever deceives us is not one of us).
According to Imam Ghazali, a Muslim who makes up his mind to adopt trade as a profession or to set up his own business should first acquire a thorough understanding of the rules of business transactions codified in the Islamic Shari'ah. Without such understanding he will go astray and fail into serious lapses making his earning unlawful. No people in the world have ever attached so much importance to lawful trading as did the early Muslims, nor has any other nation evinced such a dread of unlawful trading as they did. That is why al-Ghazali said stress on a clear understanding of the rules and laws governing business transactions as a necessary prerequisite to adopting trade or business as a profession.
The Holy Qur'an has stressed the importance of fairness in business: "And, O my people, give full measure and weight justly, and defraud not men of their things, and act not corruptly in the land making mischief. What remains with Allah is better for you, if you are believers" (xi. 85-86).
In these words addressed by Hadrat Shu'aib to his people, the Holy Qur'an enunciates the fundamental principles of commerce as follows:
- To give just measure and weight.
- Not to withhold from the people the things that are their due.
- Not to commit evil on the earth with the intent of doing mischief.
- To be contented with the profit that is left with us by God after we have paid other people their due.
We are told in these verses that commerce can flourish under conditions of peace and security. The people are, therefore, warned not to disturb the peace of the land so that there is a free and untrammelled trade between different parts of the world. In commercial relations we are expected to be absolutely just and honest, liberally giving other people their due. We are not to be guilty of selfish greed and not to indulge in profiteering; and we are told that the lawful profit which has God's blessings is the one that we are able to make through perfectly honest dealings with others. The injunctions contained in these Qur'anic verses and found elsewhere in the Holy Book close the door of all dishonest and unjust transactions. We should not forget that justice is a master virtue. If we give others just measure and just weight that tantamounts to saying that we should be fair and just in our dealings.
A careful study of "Kitab al-Buyu`" (the book pertaining to business transactions) will reveal the fact that the Holy Prophet (may peace be upon him) based business dealings strictly on truth and justice. He has strongly disapproved all transactions which involve any kind of injustice or hardship to the buyer or the seller. He wanted that both, the buyer and the seller, should be truly sympathetic and considerate towards each other. One should not take undue advantage of the simplicity or ignorance of the other. The seller should not think that he has unrestricted liberty to extort as much as possible from the buyer. He has to be just; he should take his own due and give the buyer what is his.
Islam, which condemns every kind of injustice and exploitation in human relations, wants its followers to conduct business in a sublime spirit of justice tempered with human kindness. The conduct of the seller in a transaction should be characterised not only by Insaf (justice), but also by Ihsan (magnanimity). "God will forgive the sins of a Muslim who absolves a fellow-Muslim from a sale-contract not liked by the latter," says the Holy Prophet (may peace be upon him).
All transactions should be based on the fundamental principle of "Ta'auanu ala birri wa't-taqwa" (mutual co-operation for the cause of goodness or piety). A transaction not based upon this sound principle is not lawful. Unlawful transactions are motivated by lust for money and an ignoble desire to build up prestige. Islam strikes at the root of the passion for money and suggests a different yardstick to measure the prestige of a person. The Holy Qur'an, on the one hand, condemns hoarding and the excessive love for wealth, and, on the other, declares virtue and piety to be the criterion for determining a person's worth. "Inna akramakum `ind-Allahi atqakum" (The noblest in the eyes of God is the most pious among you). Thus does Islam minimise in every possible way the temptation to illegal trade and traffic. Let us now take note of the forms of business transactions which have been prohibited in Islam. The Holy Prophet (may peace be upon him) has not only disapproved of certain forms of business transactions, but has also laid down some basic conditions that should be fulfilled in every transaction if it is to be lawful.
The following are some of these basic conditions:
1. Things sold and money offered as their price to be lawfully acquired. The things sold and the money to be offered as their price should both be lawfully acquired and clearly specified. This condition demands that the goods sold should have been lawfully obtained. One has no business to sell goods which one has stolen or which one has acquired in a fraudulent manner. nor should one purchase anything with the money which one has accepted as illegal gratification or has aceuired in some other deceitful way. This condition holds the buyer and the seller responsible for lawful possession of the goods on the partof one and of the money on the part of other.
2. Goods not to be sold before obtaining their possession. The Holy Prophet (may peace be upon him) has warned the Muslims against indulging in forward transactions which means selling goods before obtaining their possession. "Whoever buys cereals shall not tell them until he has obtained their possession," says the Holy Prophet (may peace be upon him). According to Ibn 'Abbas, what applies to cereals also applies to other categories of goods. On another occasion the Holy Prophet (may peace be upon him) has said: "Bargain not about that which is not with you."
3. Goods to be bought in the open market. Goods and commodities for sale should go into the open market, and the seller or his agents must be aware of the state of the market before proposals are made for the purchase by the buyers. The seller should not be taken unawares lest the buyers should take undue advantage of his ignorance of the conditions and prices prevailing in the market.
4. No trade and traffic in things, the use of which is prohibited by Islam. A Muslim can trade in those goods and commodities only the use of which has been declared to be Halal (lawful). There can be no trade and traffic in things the use of which is proliibited by Islam. For example, there can be no trade in wine, swine, dead bodies of animals and idols. A devout Muslim merchant would not even traffic in thin and transparent stuff for ladies because the use of such stuff by ladies is unlawful. One cannot sell the carcass of an animal. He can, however, flay its skin which can be used for making shoes and which can therefore, be sold, but not the flesh of the dead animal. What is true of the usable skin of animals is also true of the tusks of an elephant.