Hadith on Islamic Finance #28

Table of content

Theme: Business Etiquette in Islam

The Messenger of Allah (ﷺ) said, “The Muslim is the brother of another Muslim, and it is not permissible for a Muslim to sell his brother goods in which there is a defect, without pointing that out to him.”

Narrated by ‘Uqbah bin ‘Amir

(Source: Sunan Ibn Majah, hadith No. 2246)

Our beloved Prophet (ﷺ) gave great importance to ethical dealings. He (ﷺ) once said: “no one of you shall become a true believer until he desires for his brother what he desires for himself”. Hence, it is only fitting for Muslim traders to be truthful in their business transactions and avoid cheating or deceiving customers.

As mentioned in the above hadith, we are commanded to be transparent and honest in all our transactions. That is to indicate any defects found before completing a sale. In surah al-Baqarah, verse 188, Allah SWT said: “And do not consume one another’s wealth unjustly”.

However, in a situation when the defect was known and noticed after the deal has been done, the buyer:

  1. may be refunded the difference between the two values (Paid minus Defect)
  2. or may return/exchange the goods back to the seller.

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