Buying and selling: one contract, several rules

Dear reader, now that I have explained to you what I will and will not talk about, now that your ideas are clear (I hope), let us go deeper through our topic: the Islamic Business Enterprise. What is it? how does it work? those are the questions that I will try to answer in the next articles.

Feel free to comment on this post or send me an email if you want me to clarify anything.

Some Rules of selling:

An IBE has to apply the islamic contracts related to its sector and activities

A contract is a dealing made by two pubescent and san people. Each contract has to fulfill specific conditions and integrals.

Then, an IBE can be defined as an organization composed by several individuals. This organization aims to make profits while applying specific contracts related to its activities and sector and avoiding certain types of dealings.

Definition of Selling:

Originary in the arabic language, the term “Al-bay^” which is usualy translated in english by “selling”, means to give something in return to something else.

In the religious context, selling means “to give something that has a monetary value in return to another thing that has a monetary value in a specific way”.

The conditions and integrales of buying and selling contracts:

Ø  The exchanged articles have to be lawful

The article given by the seller and the one given by the buyer shouldn’t be prohibited in the religion. From here, we know that it is not permissible to sell blood or buy it, also wine (alcohol), urine, the meat that was not slatered lawfuly

Ø  The exchanged articles have to be pure

This means that both articles shouldn’t be filthy such as urine, blood, porc or alcohol.

Ø  The transaction shouldn’t be time limited

This means that both buyer and seller have not to agree on a time at which the contract ends. If this occures, it makesthe contract invalid.

Ø  The selling and buying should not be contingent upon the occurence of something

For example, if one says to another means “now, there is a contract between us, if my father comes the contract would be valid and if my father doesn’t come, the contract would be invalid” such a contract is not valid.

Ø  The sold articles need also to be beneficial

Some issues that are sold are not considered as beneficial in religion which means that it is not permissible religiously to use them. Some others are not considered beneficial physicaly. And it is not permissible to sell both types. For example, the burned bread, it has in fact no benefit for anybody as no one can eat it. Therefore, it is prohibited to sell or buy it.

Ø  It is a condition that the sold item should be known

So, it is not permited to say “I sell you now one of those two houses”. In fact, the house which will be sold should be known.

Ø  The buyer should be able to recieve the sold item

For example, if a person had a pigeon which went away from him, then he doesn’t know anymore where it is. he cannot sell it to another person.

Ø  The sold item shouldn’t be non-existent[1]

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[1] An exception of this rule is « the salam » which will be presented briefly in the coming artciles