Are your Transactions Shari'ah Compliant?



Miscellaneous Etiquettes of Transactions:


The mutual consent of all the parties is vital for the validity of the transaction

All transactions that contain a form or an element of Interest or gambling are prohibited in Islam

The price, the commodity and the time should all be specified and should not be unknown or uncertain

The deal must not involve any excessive ambiguity or deception

Any of the parties should not stipulate a condition which advantages simply any one of them

The seller should not deceive, lie or breach the trust of the customer

Neither of the parties should stipulate a condition which binds one transaction to another or to a loan


The following commodities should not be sold:

  • which are termed in Shariah as Haraam
  • which are used exclusively for Haraam purposes
  • which are not in the possession or the control of the seller
  • which have not yet arrived


Selling Goods


No one may dispose of the property of another without the latter’s permission

The seller must not conceal the faults in the goods being sold

What is prohibited to take, is prohibited to give

A purchaser must not resell a commodity prior to taking possession of it

The trader should not give the customer than what the customer is paying for; but rather he should give a little extra.



It is permissible to claim from a debtor only that amount that was initially lent to him.



It is not permissible for a creditor to take any benefit from the pawned item since this will constitute interest.


Mutual Partnership

In a mutual partnership: Profit is based on the agreement of the parties, but loss is always subject to the ratio of investment.



The employee should be paid his wages “even prior to his perspiration drying”.


Credit Sales

It is permissible to deal in cash or credit sale. However, in a credit sale, the amount and the duration of the credit must be specified at the time of the transaction.


Written by: Hanif Patel, Student Darul Iftaa - UK


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