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(Book 31, Hadith 81) #36422
Truthfulness & Honesty in Business Transactions

SUMMARY: This hadith explains the importance of truthfulness and honesty in business transactions, and how to resolve disputes between two parties.

Malik related to me that he had heard that Abdullah ibn Masud used to relate that the Messenger of Allah, may Allah bless him and grant him peace, said, "When two parties dispute about a business transaction, the seller's word is taken, or they make an agreement among themselves. Malik spoke about someone who sold goods to a man, and said at the contracting of the sale, 'I will sell to you provided I consult so-and-so. If he is satisfied, the sale is permitted. If he dislikes it, there is no sale between us'. They made the transaction on that basis. Then the buyer regretted before the seller consulted the person. Malik said, "That sale is binding on them according to what they described. The buyer has no right of withdrawal, and it is binding on him, if the person whom the seller stipulated to him, permits it". Malik said, "The way of doing things among us about a man who buys goods from another and they differ about the price, and the seller says, 'I sold them to you for ten dinars,' and the buyer says, 'I bought them from you for five dinars,' is that it is said to the seller, 'If you like, give them to the buyer for what he said. If you like, swear by Allah that you only sold your goods for what you said'. If he swears it is said to the buyer, 'Either you take the goods for what the seller said, or you swear by Allah that you bought them only for what you said'. If he swears, he is free to return the goods. That is when each of them testifies against the other".
وَحَدَّثَنِي مَالِكٌ، أَنَّهُ بَلَغَهُ أَنَّ عَبْدَ اللَّهِ بْنَ مَسْعُودٍ، كَانَ يُحَدِّثُ أَنَّ رَسُولَ اللَّهِ قَالَ ‏ "‏ أَيُّمَا بَيِّعَيْنِ تَبَايَعَا فَالْقَوْلُ مَا قَالَ الْبَائِعُ أَوْ يَتَرَادَّانِ

TOPICS
business  *  transaction  *  dispute  *  agreement  *  seller  *  buyer

QUICK LESSONS:
Be truthful and honest in all your dealings with others; come to agreements among yourselves; swear by Allah only when necessary; do not cause any harm or injustice towards anyone else; abide by agreements made between both parties involved in a transaction.

EXPLANATIONS:
This hadith emphasizes the importance of truthfulness and honesty when it comes to business transactions. It explains that if two parties are disputing a transaction, then the seller's word should be taken or they should come to an agreement among themselves. The hadith also states that if one party regrets before consulting with another person, then the sale is still binding on them. Furthermore, if there is a dispute about price between buyer and seller, then either party can swear by Allah that they are telling the truth about their side of the transaction. If one swears by Allah then they are free to return goods or take them for what was said by either party. This hadith teaches us that we must always be honest in our dealings with others so as not to cause any harm or injustice towards anyone else.

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