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Sunan an-Nasai 4518 (Book 44, Hadith 70) #19051
Forbidden Transactions in Islam

SUMMARY: The Prophet Muhammad forbade two types of transactions, Gharar and Hasah.

It was narrated that Abu Hurairah said: "The Messenger of Allah forbade Gharar transaction and Hasah transactions".
أَخْبَرَنَا عُبَيْدُ اللَّهِ بْنُ سَعِيدٍ، قَالَ حَدَّثَنَا يَحْيَى، عَنْ عُبَيْدِ اللَّهِ، قَالَ أَخْبَرَنِي أَبُو الزِّنَادِ، عَنِ الأَعْرَجِ، عَنْ أَبِي هُرَيْرَةَ، قَالَ نَهَى رَسُولُ اللَّهِ عَنْ بَيْعِ الْحَصَاةِ وَعَنْ بَيْعِ الْغَرَرِ

TOPICS
transaction  *  prohibition  *  gharar  *  hasah

QUICK LESSONS:
Follow ethical practices while engaging in any kind of transaction .

EXPLANATIONS:
The hadith narrated by Abu Hurairah states that the Prophet Muhammad forbade two types of transactions, Gharar and Hasah. Gharar is a type of transaction which involves uncertainty or risk. It is a form of gambling or speculation where one party does not know what they are buying or selling. On the other hand, Hasah is a type of transaction which involves deception or fraud. It is when one party deceives another into believing something that isn’t true in order to gain an advantage over them. Both these forms of transactions are forbidden in Islam as they involve unethical practices and can lead to harm for both parties involved in the transaction.

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