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Sahih Muslim 1594d (Book 22, Hadith 126) #11202
Exchange of Goods with Different Qualities

SUMMARY: Exchange of goods with different qualities should be done through a third commodity or currency to avoid the element of interest.

Abu Nadra reported: I asked Ibn Umar and Ibn Abbas (Allah be pleased with them) about the conversion of gold with gold but they did not find any harm in that. I was sitting in the company of Abd Sa'id al-Khudri (Allah be pleased with him) and asked him about this exchange, and he said: Whatever is addition is an' interest. I refused to accept it on account of their statement (statement of Ibn 'Abbas and Ibn 'Umar). He said: I am not narrating to you except what I heard from Allah's Messenger . There came to him the owner of a date-palm with one sa' of fine dates, and the dates of Allah's Apostle were of that colour. Allah's Apostle said to him: Where did you get these dates? I went with two sa's of (inferior dates) and bought one sa' of (these fine dates), for that is the prevailing price (of inferior dates) in the market and that is the price (of the fine quality of dates in the market), whereupon Allah's Messenger said: Woe be upon you! You have dealt in interest, when you decide to do it (i. e. exchange superior quality of dates for inferior quality) ; so you should sell your dates for another commodity (or currency) and then with the help of that commodity buy the dates you like. Abu Sa'ad said: When dates are exchanged for dates (with different qualities) there is the possibility (of the element of) interest (creeping into that) or when gold is exchanged for gold having different qualities. I subsequently came to Ibn 'Umar and he forbade me (to do it), but I did not come to Ibn 'Abbas; (Allah be pleased with them). He (the narrator) said: Abu as-Sahba' narrated to me: He asked Ibn Abbas (Allah be pleased with them) in Mecca, and he too disapproved of it.
حَدَّثَنَا إِسْحَاقُ بْنُ إِبْرَاهِيمَ، أَخْبَرَنَا عَبْدُ الأَعْلَى، أَخْبَرَنَا دَاوُدُ، عَنْ أَبِي نَضْرَةَ، قَالَ سَأَلْتُ ابْنَ عُمَرَ وَابْنَ عَبَّاسٍ عَنِ الصَّرْفِ، فَلَمْ يَرَيَا بِهِ بَأْسًا فَإِنِّي لَقَاعِدٌ عِنْدَ أَبِي سَعِيدٍ الْخُدْرِيِّ فَسَأَلْتُهُ عَنِ الصَّرْفِ فَقَالَ مَا زَادَ فَهُوَ رِبًا ‏.‏ فَأَنْكَرْتُ ذَلِكَ لِقَوْلِهِمَا فَقَالَ لاَ أُحَدِّثُكَ إِلاَّ مَا سَمِعْتُ مِنْ رَسُولِ اللَّهِ جَاءَهُ صَاحِبُ نَخْلِهِ بِصَاعٍ مِنْ تَمْرٍ طَيِّبٍ وَكَانَ تَمْرُ النَّبِيِّ هَذَا اللَّوْنَ فَقَالَ لَهُ النَّبِيُّ ‏"‏ أَنَّى لَكَ هَذَا ‏"‏ ‏.‏ قَالَ انْطَلَقْتُ بِصَاعَيْنِ فَاشْتَرَيْتُ بِهِ هَذَا الصَّاعَ فَإِنَّ سِعْرَ هَذَا فِي السُّوقِ كَذَا وَسِعْرَ هَذَا كَذَا ‏.‏ فَقَالَ رَسُولُ اللَّهِ ‏"‏ وَيْلَكَ أَرْبَيْتَ إِذَا أَرَدْتَ ذَلِكَ فَبِعْ تَمْرَكَ بِسِلْعَةٍ ثُمَّ اشْتَرِ بِسِلْعَتِكَ أَىَّ تَمْرٍ شِئْتَ ‏"‏ ‏.‏ قَالَ أَبُو سَعِيدٍ فَالتَّمْرُ بِالتَّمْرِ أَحَقُّ أَنْ يَكُونَ رِبًا أَمِ الْفِضَّةُ بِالْفِضَّةِ قَالَ فَأَتَيْتُ ابْنَ عُمَرَ بَعْدُ فَنَهَانِي وَلَمْ آتِ ابْنَ عَبَّاسٍ - قَالَ - فَحَدَّثَنِي أَبُو الصَّهْبَاءِ أَنَّهُ سَأَلَ ابْنَ عَبَّاسٍ عَنْهُ بِمَكَّةَ فَكَرِهَهُ

TOPICS
exchange  *  interest  *  commodity  *  currency

QUICK LESSONS:
Use a third commodity while exchanging goods so as to avoid any kind of riba/usury from creeping into our transactions

EXPLANATIONS:
This hadith is about exchanging goods with different qualities. It is narrated by Abu Nadra that he asked Ibn Umar and Ibn Abbas about exchanging gold for gold but they did not find any harm in it. He then asked Abd Sa'id al-Khudri and he said that whatever is addition is an interest. The hadith further explains that when Allah's Messenger saw a man selling dates of superior quality for inferior quality dates, he told him to sell his dates for another commodity or currency and then buy the dates he likes as this would avoid the element of interest. This hadith teaches us that we should not exchange goods with different qualities directly as it may lead to an element of interest which is forbidden in Islam. We should instead use a third commodity or currency while exchanging goods so as to avoid any kind of riba or usury from creeping into our transactions.

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