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(Book 32, Hadith 12) #36455
Responsibilities of an Agent in Qirad Transactions

SUMMARY: The hadith discusses the responsibilities of an agent who is given qirad money to buy goods and then sells them for a price to be paid later. It also explains that if the agent dies before receiving payment, his heirs have a right to take their father's stipulated portion from the profit.

Yahya said that Malik said, "The generally agreed on way of doing things among us about an investor who pays qirad money to an agent to buy goods, and the agent then sells the goods for a price to be paid later, and has a profit in the transaction, then the agent dies before he has received payment, is that if his heirs want to take that money, they have their father's stipulated portion from the profit. That is theirs if they are trustworthy to take the payment. If they dislike to collect it from the debtor and they refer him to the investor, they are not obliged to collect it and there is nothing against them and nothing for them by their surrendering it to the investor. If they do collect it, they have a share of it and expenses like their father had. They are in the position of their father. If they are not trustworthy to do so, they can bring someone reliable and trustworthy to collect the money. If he collects all the capital and all the profit, they are in the position of their father". Malik spoke about an investor who paid qirad money to a man provided that he used it and was responsible for any delayed payment for which he sold it. He said, "This is obligatory on the agent. If he sells it for delayed payment, he is responsible for it".

TOPICS
transaction  *  profit  *  payment  *  heirs  *  qirad

QUICK LESSONS:
Be responsible when dealing with financial transactions such as qirads which involve investing money into buying goods with potential profits or losses involved in such transactions; Bring someone reliable and trustworthy instead if you are not able trust your own family members; Take your father's stipulated portion from any profits made through these investments; Respect agreements made between investors & agents regarding payments & other terms related thereto; Follow Islamic laws & regulations related thereto etc..

EXPLANATIONS:
This hadith discusses the responsibilities of an agent who is given qirad money by an investor to buy goods and then sells them for a price to be paid later. If the agent dies before receiving payment, his heirs have a right to take their father's stipulated portion from the profit as long as they are trustworthy enough to do so. If not, they can bring someone reliable and trustworthy instead in order to collect all capital and profits due. Furthermore, it is obligatory on the agent if he sells it for delayed payment as he will be responsible for it. This hadith teaches us about responsibility when dealing with financial transactions such as qirads which involve investing money into buying goods with potential profits or losses involved in such transactions.

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