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Sunan an-Nasai 4634 (Book 44, Hadith 186) #19167
Forbidden Transactions and Concessions

SUMMARY: The Prophet Muhammad forbade certain types of transactions, except for 'Araya, which he allowed with a concession.

It was narrated that Jabir said: "The Messenger of Allah forbade Muhaqalah, Muzahanah, Mukhabarah, Mu'awamah, and selling with an exception unless it is defined but he gave concession allowing 'Araya.
أَخْبَرَنَا عَلِيُّ بْنُ حُجْرٍ، قَالَ حَدَّثَنَا إِسْمَاعِيلُ بْنُ إِبْرَاهِيمَ، عَنْ أَيُّوبَ، وَأَخْبَرَنَا زِيَادُ بْنُ أَيُّوبَ، قَالَ حَدَّثَنَا ابْنُ عُلَيَّةَ، قَالَ أَنْبَأَنَا أَيُّوبُ، عَنْ أَبِي الزُّبَيْرِ، عَنْ جَابِرٍ، قَالَ نَهَى رَسُولُ اللَّهِ عَنِ الْمُحَاقَلَةِ وَالْمُزَابَنَةِ وَالْمُخَابَرَةِ وَالْمُعَاوَمَةِ وَالثُّنْيَا وَرَخَّصَ فِي الْعَرَايَا

TOPICS
transactions  *  exchange  *  contract  *  agreement  *  exception  *  muhaqalah  *  muzahanh  *  mukhabarah  *  muawamh  *  araya

QUICK LESSONS:
Carefully consider all kinds of transactions before engaging in them; follow Islamic principles when making agreements or contracts; understand different types of transactions before entering into them.

EXPLANATIONS:
This hadith is about the various types of transactions that were forbidden by the Prophet Muhammad. Muhaqalah is a type of transaction where goods are exchanged for goods, Muzahanah is an exchange of goods for money, Mukhabarah is a contract between two parties to pay each other in installments over time, and Mu'awamah is an agreement between two parties to exchange goods or services at different times. All these transactions were forbidden by the Prophet Muhammad except for 'Araya which was allowed with a concession. This hadith teaches us that we should be careful when engaging in any kind of transaction and make sure it follows Islamic principles.

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