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Sahih Muslim 1587c (Book 22, Hadith 102) #11182
Payment in Kind

SUMMARY: Payment should be made in kind, with like for like and equal for equal. If the classes differ, then payment can be made as desired if it is done hand to hand.

Ubida b. al-Simit (Allah be pleased with him) reported Allah's Messenger as saying: Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt, like for like and equal for equal, payment being made hand to hand. If these classes differ, then sell as you wish if payment is made hand to hand.
حَدَّثَنَا أَبُو بَكْرِ بْنُ أَبِي شَيْبَةَ، وَعَمْرٌو النَّاقِدُ، وَإِسْحَاقُ بْنُ إِبْرَاهِيمَ، - وَاللَّفْظُ لاِبْنِ أَبِي شَيْبَةَ - قَالَ إِسْحَاقُ أَخْبَرَنَا وَقَالَ الآخَرَانِ، حَدَّثَنَا وَكِيعٌ، حَدَّثَنَا سُفْيَانُ، عَنْ خَالِدٍ، الْحَذَّاءِ عَنْ أَبِي قِلاَبَةَ، عَنْ أَبِي الأَشْعَثِ، عَنْ عُبَادَةَ بْنِ الصَّامِتِ، قَالَ قَالَ رَسُولُ اللَّهِ ‏ "‏ الذَّهَبُ بِالذَّهَبِ وَالْفِضَّةُ بِالْفِضَّةِ وَالْبُرُّ بِالْبُرِّ وَالشَّعِيرُ بِالشَّعِيرِ وَالتَّمْرُ بِالتَّمْرِ وَالْمِلْحُ بِالْمِلْحِ مِثْلاً بِمِثْلٍ سَوَاءً بِسَوَاءٍ يَدًا بِيَدٍ فَإِذَا اخْتَلَفَتْ هَذِهِ الأَصْنَافُ فَبِيعُوا كَيْفَ شِئْتُمْ إِذَا كَانَ يَدًا بِيَدٍ

TOPICS
payment  *  exchange  *  equal  *  kaffarah  *  tawapu  *  musawamah  *  yad  *  handtohand

QUICK LESSONS:
Make payments in kind , Make payments equally , Make payments hand to hand .

EXPLANATIONS:
This hadith teaches us about the importance of making payments in kind, meaning that one should pay with what they are receiving. For example, if someone is buying gold then they should pay with gold and not silver or any other currency. Furthermore, payment should be made equally and hand to hand so that both parties are satisfied with the exchange. This hadith also teaches us about fairness when it comes to exchanging goods or services; we must ensure that we are giving an equal amount of what we receive so that both parties benefit from the transaction.

The Prophet Muhammad ﷺ also taught us about being generous when making payments; if there is a difference between two classes of goods then one can make payment as desired as long as it is done hand to hand. This encourages people to be fair and generous when dealing with others in business transactions or exchanges of goods and services.

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