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Sunan an-Nasai 4633 (Book 44, Hadith 185) #19166
Forbidden Transactions

SUMMARY: The Prophet forbade certain types of transactions unless they are defined.

It was narrated from Jabir that: the Prophet forbade Muhaqalah, Muzahanah, Mukhabarah and selling with an exception unless it is defined.
أَخْبَرَنَا زِيَادُ بْنُ أَيُّوبَ، قَالَ حَدَّثَنَا عَبَّادُ بْنُ الْعَوَّامِ، قَالَ حَدَّثَنَا سُفْيَانُ بْنُ حُسَيْنٍ، قَالَ حَدَّثَنَا يُونُسُ، عَنْ عَطَاءٍ، عَنْ جَابِرٍ، أَنَّ النَّبِيَّ نَهَى عَنِ الْمُحَاقَلَةِ وَالْمُزَابَنَةِ وَالْمُخَابَرَةِ وَعَنِ الثُّنْيَا إِلاَّ أَنْ تُعْلَمَ

QUICK LESSONS:
Follow Islamic teachings when engaging in business activities; ensure all conditions are explicitly stated and agreed upon before entering into any transaction; be mindful when making purchases or sales so one does not fall into prohibited practices according to Islamic law; be aware of one’s rights and responsibilities when engaging in commercial activities so one does not become victimised by unscrupulous traders who may try to take advantage through unfair practices such as those mentioned above .

EXPLANATIONS:
This hadith is about the prohibition of certain types of transactions, such as Muhaqalah, Muzahanah, and Mukhabarah. These are all forms of trade that involve a person selling something with an exception or condition attached to it. For example, if someone sells something with the condition that they will buy it back at a later date for a higher price, this is known as Muhaqalah. Similarly, if someone sells something with the condition that they will buy it back at a later date for the same price or less than what was originally paid for it, this is known as Muzahanah. Lastly, if someone sells something with the condition that they will receive some kind of benefit from it in return for their purchase then this is known as Mukhabarah. The Prophet forbade these kinds of transactions unless there was an explicit definition or agreement between both parties involved in the transaction beforehand. This means that any conditions attached to a sale must be clearly stated and agreed upon by both parties before any transaction can take place in order to avoid any potential disputes or misunderstandings afterwards.

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