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KembaraXtra – Legal Terms – Process
In legal terminology, process commonly refers to a formal document issued by a court requiring a party to take some step in legal proceedings. Such documents may compel attendance before the court, require the filing of a defence, or direct compliance with judicial orders. When process is used to begin legal proceedings, it is often called the originating process. Under Part 7 of the Civil Procedure Rules, civil proceedings in England and Wales are generally commenced through the issue of a claim form. Process therefore serves as the formal mechanism through which courts assert jurisdiction over parties and notify them of legal actions affecting their rights or obligations. Proper service of process is usually essential to ensure fairness and validity in legal proceedings.
The term “process” may also appear in the phrase abuse of process, which refers to misuse of the court’s procedures for improper purposes. Courts possess inherent powers to prevent abuse of process where proceedings are frivolous, oppressive, duplicative, or otherwise inconsistent with the administration of justice. In its broader sense, legal process reflects the structured methods through which courts administer justice and resolve disputes. Process ensures that litigation proceeds according to recognized legal standards rather than arbitrary action. It therefore forms an essential part of procedural fairness, legal certainty, and the rule of law within judicial systems.
In legal terminology, process commonly refers to a formal document issued by a court requiring a party to take some step in legal proceedings. Such documents may compel attendance before the court, require the filing of a defence, or direct compliance with judicial orders. When process is used to begin legal proceedings, it is often called the originating process. Under Part 7 of the Civil Procedure Rules, civil proceedings in England and Wales are generally commenced through the issue of a claim form. Process therefore serves as the formal mechanism through which courts assert jurisdiction over parties and notify them of legal actions affecting their rights or obligations. Proper service of process is usually essential to ensure fairness and validity in legal proceedings.
The term “process” may also appear in the phrase abuse of process, which refers to misuse of the court’s procedures for improper purposes. Courts possess inherent powers to prevent abuse of process where proceedings are frivolous, oppressive, duplicative, or otherwise inconsistent with the administration of justice. In its broader sense, legal process reflects the structured methods through which courts administer justice and resolve disputes. Process ensures that litigation proceeds according to recognized legal standards rather than arbitrary action. It therefore forms an essential part of procedural fairness, legal certainty, and the rule of law within judicial systems.
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KembaraXtra – Legal Terms – Procedure
In legal proceedings, procedure refers to the formal rules and methods governing how cases are conducted in court. Procedural law regulates the steps parties must follow when enforcing legal rights or defending claims. It includes rules concerning the commencement of proceedings, service of documents, filing requirements, evidence, hearings, appeals, and enforcement of judgments. Procedure is distinct from substantive law, which defines legal rights and obligations themselves. While substantive law determines what the law is, procedural law determines how that law is applied and enforced within the judicial system. Proper procedure is essential for ensuring fairness, efficiency, and consistency in legal proceedings.
Court procedures are commonly governed by rules of court and practice directions. In England and Wales, for example, civil proceedings are regulated largely by the Civil Procedure Rules, while criminal proceedings are governed by the Criminal Procedure Rules. Procedural requirements ensure that both parties receive fair notice of claims, opportunities to present evidence, and access to impartial adjudication. Failure to comply with procedural rules may result in sanctions, delays, dismissal of claims, or adverse costs orders. Procedure therefore plays a crucial role in maintaining the orderly administration of justice. Without clear procedural frameworks, the legal system would struggle to resolve disputes fairly and efficiently.
In legal proceedings, procedure refers to the formal rules and methods governing how cases are conducted in court. Procedural law regulates the steps parties must follow when enforcing legal rights or defending claims. It includes rules concerning the commencement of proceedings, service of documents, filing requirements, evidence, hearings, appeals, and enforcement of judgments. Procedure is distinct from substantive law, which defines legal rights and obligations themselves. While substantive law determines what the law is, procedural law determines how that law is applied and enforced within the judicial system. Proper procedure is essential for ensuring fairness, efficiency, and consistency in legal proceedings.
Court procedures are commonly governed by rules of court and practice directions. In England and Wales, for example, civil proceedings are regulated largely by the Civil Procedure Rules, while criminal proceedings are governed by the Criminal Procedure Rules. Procedural requirements ensure that both parties receive fair notice of claims, opportunities to present evidence, and access to impartial adjudication. Failure to comply with procedural rules may result in sanctions, delays, dismissal of claims, or adverse costs orders. Procedure therefore plays a crucial role in maintaining the orderly administration of justice. Without clear procedural frameworks, the legal system would struggle to resolve disputes fairly and efficiently.
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KembaraXtra – Legal Terms – Procedural Impropriety
Procedural impropriety refers to a failure by a public authority to act according to the requirements of procedural fairness and the common-law principles of natural justice. It is one of the principal grounds upon which courts may review and challenge administrative decisions through judicial review. Procedural impropriety may arise where a public authority fails to follow statutory procedures, ignores mandatory procedural safeguards, acts unfairly, or denies a person the opportunity to be heard. Examples include failing to provide adequate notice, refusing a fair hearing, showing bias, or disregarding consultation requirements imposed by law. The doctrine ensures that public bodies exercise their powers fairly, transparently, and consistently with legal standards. It therefore protects individuals against arbitrary or unfair exercises of public power.
The concept was clearly articulated by Lord Diplock in the landmark case of Council of Civil Service Unions v Minister for the Civil Service [1985] AC 374, where he identified procedural impropriety, illegality, and irrationality as the major common-law grounds of judicial review. Procedural impropriety is closely linked to the rules of natural justice, particularly the right to an impartial decision-maker and the right to be heard before adverse decisions are made. Courts assessing claims of procedural impropriety examine whether the decision-making process itself was lawful and fair rather than whether the decision was substantively correct. The doctrine therefore reinforces the rule of law by requiring public authorities to comply with legal procedures and principles of fairness. Modern cases, including Bank Mellat v HM Treasury [2013] UKSC 38, demonstrate the continuing importance of procedural fairness within administrative law and human rights jurisprudence.
Procedural impropriety refers to a failure by a public authority to act according to the requirements of procedural fairness and the common-law principles of natural justice. It is one of the principal grounds upon which courts may review and challenge administrative decisions through judicial review. Procedural impropriety may arise where a public authority fails to follow statutory procedures, ignores mandatory procedural safeguards, acts unfairly, or denies a person the opportunity to be heard. Examples include failing to provide adequate notice, refusing a fair hearing, showing bias, or disregarding consultation requirements imposed by law. The doctrine ensures that public bodies exercise their powers fairly, transparently, and consistently with legal standards. It therefore protects individuals against arbitrary or unfair exercises of public power.
The concept was clearly articulated by Lord Diplock in the landmark case of Council of Civil Service Unions v Minister for the Civil Service [1985] AC 374, where he identified procedural impropriety, illegality, and irrationality as the major common-law grounds of judicial review. Procedural impropriety is closely linked to the rules of natural justice, particularly the right to an impartial decision-maker and the right to be heard before adverse decisions are made. Courts assessing claims of procedural impropriety examine whether the decision-making process itself was lawful and fair rather than whether the decision was substantively correct. The doctrine therefore reinforces the rule of law by requiring public authorities to comply with legal procedures and principles of fairness. Modern cases, including Bank Mellat v HM Treasury [2013] UKSC 38, demonstrate the continuing importance of procedural fairness within administrative law and human rights jurisprudence.
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KembaraXtra – Legal Terms – Pro Bono Publico
Pro bono publico, a Latin phrase meaning “for the public good,” describes legal work carried out voluntarily and without payment for the benefit of the community. Pro bono work is often performed by lawyers, law firms, law students, and legal organizations to assist individuals who cannot afford legal representation or advice. Such services may include providing legal advice, drafting documents, representing clients in court, or participating in public legal education projects. Pro bono activities promote greater access to justice and help address inequalities in the legal system. Organizations such as Citizens Advice Bureaux have long provided assistance to members of the public through voluntary legal support. In recent years, universities and law schools have also encouraged students to participate in supervised pro bono programmes.
The concept of pro bono publico also has a broader interpretative meaning in law. In statutory interpretation, courts may sometimes apply the principle that legislation should be interpreted in a manner serving the public good. This approach reflects the idea that law should promote fairness, social welfare, and the broader interests of society rather than narrow technical outcomes. Although the phrase is most commonly associated with unpaid legal work, its underlying philosophy emphasizes public service and the social responsibilities of legal professionals. Pro bono work therefore represents both a practical method of expanding access to justice and an ethical commitment to the public interest within the legal profession.
Pro bono publico, a Latin phrase meaning “for the public good,” describes legal work carried out voluntarily and without payment for the benefit of the community. Pro bono work is often performed by lawyers, law firms, law students, and legal organizations to assist individuals who cannot afford legal representation or advice. Such services may include providing legal advice, drafting documents, representing clients in court, or participating in public legal education projects. Pro bono activities promote greater access to justice and help address inequalities in the legal system. Organizations such as Citizens Advice Bureaux have long provided assistance to members of the public through voluntary legal support. In recent years, universities and law schools have also encouraged students to participate in supervised pro bono programmes.
The concept of pro bono publico also has a broader interpretative meaning in law. In statutory interpretation, courts may sometimes apply the principle that legislation should be interpreted in a manner serving the public good. This approach reflects the idea that law should promote fairness, social welfare, and the broader interests of society rather than narrow technical outcomes. Although the phrase is most commonly associated with unpaid legal work, its underlying philosophy emphasizes public service and the social responsibilities of legal professionals. Pro bono work therefore represents both a practical method of expanding access to justice and an ethical commitment to the public interest within the legal profession.
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KembaraXtra – Legal Terms – Probation Officer
A probation officer is an officer responsible for supervising offenders and assisting courts in the administration of criminal justice. Probation officers oversee individuals subject to various court-imposed requirements, including rehabilitation activity requirements, supervision requirements, and unpaid work requirements. Their duties extend beyond supervision and include advising, assisting, and supporting offenders as part of efforts to reduce reoffending and encourage rehabilitation. Probation officers also work with individuals released from prison or granted bail, helping them reintegrate into society while ensuring compliance with legal obligations. The role combines elements of social work, risk assessment, public protection, and criminal justice administration. Courts rely heavily on probation services when determining appropriate sentencing options and rehabilitation measures.
One of the key responsibilities of probation officers is preparing reports for the court concerning offenders and their personal circumstances. These reports assist judges in deciding the most suitable method of dealing with an offender, including whether community-based sentences may be appropriate. Probation officers assess factors such as the offender’s background, risk of reoffending, attitude toward the offence, and potential danger to the public. They also provide recommendations regarding rehabilitation and support services. The probation system reflects the principle that criminal justice should not focus solely on punishment but also on reforming offenders and protecting society. As a result, probation officers play a significant role in balancing rehabilitation, supervision, and public safety within the criminal justice system.
A probation officer is an officer responsible for supervising offenders and assisting courts in the administration of criminal justice. Probation officers oversee individuals subject to various court-imposed requirements, including rehabilitation activity requirements, supervision requirements, and unpaid work requirements. Their duties extend beyond supervision and include advising, assisting, and supporting offenders as part of efforts to reduce reoffending and encourage rehabilitation. Probation officers also work with individuals released from prison or granted bail, helping them reintegrate into society while ensuring compliance with legal obligations. The role combines elements of social work, risk assessment, public protection, and criminal justice administration. Courts rely heavily on probation services when determining appropriate sentencing options and rehabilitation measures.
One of the key responsibilities of probation officers is preparing reports for the court concerning offenders and their personal circumstances. These reports assist judges in deciding the most suitable method of dealing with an offender, including whether community-based sentences may be appropriate. Probation officers assess factors such as the offender’s background, risk of reoffending, attitude toward the offence, and potential danger to the public. They also provide recommendations regarding rehabilitation and support services. The probation system reflects the principle that criminal justice should not focus solely on punishment but also on reforming offenders and protecting society. As a result, probation officers play a significant role in balancing rehabilitation, supervision, and public safety within the criminal justice system.
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KembaraXtra – Legal Terms – Probate Registry
A probate registry is a registry within the High Court Family Division where applications may be made for a grant of representation. Such grants include grants of probate, issued to executors named in a will, and letters of administration, issued where no valid executor exists or where there is no valid will. Probate registries therefore play a central administrative role in the legal process of estate administration after death. The principal registry is located in High Holborn, London, and is supported by various district probate registries and probate subregistries throughout England and Wales. These offices process applications, examine supporting documents, and issue the legal authority required to administer a deceased person’s estate. Probate registries thereby help ensure orderly and legally recognized succession procedures.
The probate registry examines whether the application complies with legal requirements concerning wills, executors, and estate administration. Where there is no dispute regarding the validity of the will, the registry may issue a grant in common form after the necessary documentation is filed. However, where disputes arise concerning testamentary capacity, execution, fraud, or undue influence, the matter may proceed to contentious probate proceedings before the court. Probate registries are therefore administrative bodies rather than courts determining contested issues. Their work is essential in providing legal certainty to executors, beneficiaries, creditors, and financial institutions dealing with estates. The probate system thus forms an important part of succession law and judicial administration.
A probate registry is a registry within the High Court Family Division where applications may be made for a grant of representation. Such grants include grants of probate, issued to executors named in a will, and letters of administration, issued where no valid executor exists or where there is no valid will. Probate registries therefore play a central administrative role in the legal process of estate administration after death. The principal registry is located in High Holborn, London, and is supported by various district probate registries and probate subregistries throughout England and Wales. These offices process applications, examine supporting documents, and issue the legal authority required to administer a deceased person’s estate. Probate registries thereby help ensure orderly and legally recognized succession procedures.
The probate registry examines whether the application complies with legal requirements concerning wills, executors, and estate administration. Where there is no dispute regarding the validity of the will, the registry may issue a grant in common form after the necessary documentation is filed. However, where disputes arise concerning testamentary capacity, execution, fraud, or undue influence, the matter may proceed to contentious probate proceedings before the court. Probate registries are therefore administrative bodies rather than courts determining contested issues. Their work is essential in providing legal certainty to executors, beneficiaries, creditors, and financial institutions dealing with estates. The probate system thus forms an important part of succession law and judicial administration.
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KembaraXtra – Legal Terms – Probate, Divorce and Admiralty Division
The Probate, Divorce and Admiralty Division was a division of the High Court of Justice created under the Judicature Acts 1873–75. Its purpose was to consolidate and reorganize several older courts into a unified judicial system. The Division assumed jurisdiction previously exercised by the Court of Probate, the Court for Divorce and Matrimonial Causes, and the High Court of Admiralty. As a result, matters concerning wills, succession, divorce, matrimonial disputes, and maritime law were all administered within a single judicial division. The creation of the Division reflected broader nineteenth-century reforms aimed at simplifying and modernizing the English court system. These reforms sought to reduce procedural complexity and improve judicial efficiency by merging overlapping jurisdictions.
In 1970, the Division was renamed the Family Division under the Administration of Justice Act 1970. At the same time, its jurisdiction was reorganized. Admiralty matters were transferred to the Queen’s Bench Division, specifically to the Admiralty Court, while contentious probate jurisdiction was moved to the Chancery Division. The Family Division thereafter focused primarily on family-related matters such as divorce, child welfare, and matrimonial disputes. The historical existence of the Probate, Divorce and Admiralty Division demonstrates the evolution of the English judicial system from specialized separate courts into a more integrated and modern structure. Its legacy continues to influence the organization of the High Court today.
The Probate, Divorce and Admiralty Division was a division of the High Court of Justice created under the Judicature Acts 1873–75. Its purpose was to consolidate and reorganize several older courts into a unified judicial system. The Division assumed jurisdiction previously exercised by the Court of Probate, the Court for Divorce and Matrimonial Causes, and the High Court of Admiralty. As a result, matters concerning wills, succession, divorce, matrimonial disputes, and maritime law were all administered within a single judicial division. The creation of the Division reflected broader nineteenth-century reforms aimed at simplifying and modernizing the English court system. These reforms sought to reduce procedural complexity and improve judicial efficiency by merging overlapping jurisdictions.
In 1970, the Division was renamed the Family Division under the Administration of Justice Act 1970. At the same time, its jurisdiction was reorganized. Admiralty matters were transferred to the Queen’s Bench Division, specifically to the Admiralty Court, while contentious probate jurisdiction was moved to the Chancery Division. The Family Division thereafter focused primarily on family-related matters such as divorce, child welfare, and matrimonial disputes. The historical existence of the Probate, Divorce and Admiralty Division demonstrates the evolution of the English judicial system from specialized separate courts into a more integrated and modern structure. Its legacy continues to influence the organization of the High Court today.
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Islamic Law of Transaction - Documentation, Witnessing, and Ethical Conduct in Sales
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
Sales and trade are lawful and permitted in Islam. Their legitimacy is supported by the Qur’an, the Sunnah (teachings and traditions of Prophet Muhammad ﷺ), and the consensus (ijmāʿ) of Islamic jurists.
The Qur’an clearly allows trade and commercial transactions. Allah says: “But Allah has permitted trade” [2:275]. The Qur’an also encourages proper commercial dealings by stating: “Take witnesses whenever you make a commercial contract” [2:282]. Another verse says: “Let there be trade among you by mutual consent” [4:29]. Allah also says: “It is no crime for you to seek the bounty of your Lord” [2:198], meaning that earning through lawful trade and business is permissible.
The Sunnah of Prophet Muhammad ﷺ also supports lawful trade. The Prophet ﷺ was once asked which type of income is the best. He replied that the best income comes from a person’s own work and from every lawful and honest sale, meaning a transaction free from cheating and betrayal.
In another Ḥadīth, the Prophet ﷺ said: “A sale must be by mutual consent.” This shows that both the buyer and seller must willingly agree to the transaction without force or deception.
The Prophet ﷺ also accepted trade as a normal and lawful activity among people during his time. He praised honest business people by saying that a truthful and trustworthy trader will be among the prophets, the righteous, and the martyrs in the Hereafter. This Ḥadīth was narrated by Al-Tirmidhi and classified as ḥasan (good).
There is also agreement (ijmāʿ) among Muslims that sales are permissible. Islamic scholars agree that trade is necessary because it helps people fulfil their needs by cooperating and exchanging goods and services with one another. Therefore, the general rule in Islamic law is that all sales are permissible unless there is clear evidence that a specific type of sale is forbidden.
Al-Shafi‘i explained that the basic rule for all sales is permissibility as long as the transaction is carried out by capable people who willingly consent to it. However, any type of sale specifically prohibited by Prophet Muhammad ﷺ, or anything very similar to a prohibited transaction, is not allowed. Anything outside those prohibited matters remains lawful based on the Qur’anic verses that permit trade and commercial dealings.
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
The Hanafi jurists also explained that a commodity or property (māl) must be something desirable and capable of being stored for future use. An object can be recognised as property if people generally see it as useful and valuable.
Mustafa Al-Zarqa criticised this definition and suggested a broader meaning. He defined property as any identifiable object that has material value to people.
Based on the Hanafi view, services and simple rights are not usually considered commodities because they are not physical objects that can be stored. However, the majority of Islamic jurists (fuqahāʾ) consider services and rights capable of ownership because the real benefit of physical property often comes from its use (usufruct).
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
In all cases, a sale in Islamic law must be based on a contract that includes an offer (ījāb) and an acceptance (qabūl) between the parties involved.
Islamic Ethics, Documentation, and Proper Conduct in Sales
Islam places great importance on honesty, fairness, mercy, transparency, and proper documentation in business transactions.
One important ethical principle is avoiding excessive profit and unfair advantage over buyers. Islam allows traders to make reasonable profit, but it discourages exploitation and cheating. The Maliki School scholars explained that excessive unfairness may exist when profit reaches one third or more above the normal value. Therefore, profit within reasonable limits is generally acceptable.
Another important principle is truthful and complete disclosure of information. A seller must provide honest and complete details about the product, including its type, origin, quality, condition, and cost. Hiding defects, giving false information, or misleading customers goes against Islamic business ethics.
Al-Tirmidhi narrated a Ḥadīth on the authority of Rifāʿah in which the Prophet ﷺ said that most merchants will be resurrected on the Day of Judgment as sinners except those who fear Allah, deal kindly with customers, and speak truthfully in their business transactions.
Islam also encourages ease and kindness in buying and selling. Sellers and buyers should not be too harsh in negotiations or place unreasonable conditions on one another. They should avoid demanding prices that are unfairly high or unrealistically low.
Al-Bukhari narrated on the authority of Jābir that the Prophet ﷺ said: “Allah shows mercy to a person who is easy and gentle when selling, buying, and collecting debts.” This Ḥadīth teaches Muslims to act with patience, kindness, and flexibility in financial dealings.
Islam further teaches Muslims to avoid swearing by the name of Allah during sales, even if the person is speaking truthfully. Using Allah’s name frequently in business transactions is considered disrespectful and not suitable for the honour of Allah’s name.
The Qur’an criticises the misuse of oaths by saying: “Do not use Allah’s name in your oaths as an excuse against doing good, acting rightly, or making peace between people” [2:224].
In another Ḥadīth narrated by Al-Bukhari and Muslim ibn al-Hajjaj on the authority of Abū Hurayrah, the Prophet ﷺ said: “Swearing may help sell goods, but it removes their blessings.” This means that even if swearing helps attract buyers, it can remove the spiritual blessings (barakah) from the business.
Islam also encourages merchants to give charity regularly. Traders may sometimes fall into mistakes such as swearing, hiding information, cheating, poor behaviour, or taking excessive profit during business transactions. Giving charity helps cleanse and purify their earnings and actions.
Al-Tirmidhi, Abu Dawud, and Ibn Majah narrated a Ḥadīth on the authority of Qays ibn Abī Gharzah in which the Prophet ﷺ said: “O merchants, sins and wrongdoing are present in trade, so purify your sales with charity.” This teaches that charity is an important way to seek forgiveness and blessings in business dealings.
Islam also encourages the proper documentation of contracts, loans, debts, and delayed payment sales. It is recommended that financial agreements be written down clearly and supported by witnesses. This helps protect the rights of all parties, prevents disputes, and promotes trust and justice in society.
Allah instructed believers in the Qur’an [2:282] to record debts and financial contracts and to involve witnesses in such agreements. This verse forms the basis for the Islamic principle of documenting and witnessing financial transactions.
These teachings encourage Muslims to rely on honesty, trustworthiness, kindness, charity, proper documentation, and good character rather than greed, deception, or careless dealings in trade.
Case Scenario: Ethical Trade and Proper Documentation
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Ahmad offers to sell the bicycle, and Bilal willingly accepts the offer. Ahmad honestly informs Bilal that the bicycle has a small scratch and that one brake needs repair. During the discussion, Bilal asks for a small discount because he is a student, and Ahmad kindly agrees. Ahmad also avoids swearing by Allah to convince Bilal to buy the bicycle. This transaction reflects Islamic teachings of honesty, fairness, ease, and mutual consent.
Bilal is unable to pay the full amount immediately, so both parties agree that RM200 will be paid later. Ahmad and Bilal write down the agreement and ask two friends to witness the delayed payment arrangement. This follows the Islamic recommendation to document debts and financial contracts to avoid future disagreements.
After completing several sales during the month, Ahmad realises that he may have spoken harshly to some customers or charged slightly high prices in certain situations. To seek Allah’s forgiveness and purify his earnings, he gives part of his profit to charity. This follows the Islamic teaching that charity helps cleanse mistakes that may occur in business dealings.
In another example, Sarah pays a tutor for online teaching services. Although Hanafi jurists may not classify services as physical commodities, the majority of Islamic scholars allow such transactions because the service provides recognised value and benefit.
However, if Ahmad hides major defects in the bicycle, falsely claims that it is new, swears repeatedly by Allah to convince Bilal, cheats customers, refuses to document debts properly, or demands extremely unreasonable prices to exploit buyers, he would be violating Islamic business ethics. Likewise, forcing someone into a transaction, dealing harshly, or selling prohibited and worthless items such as dead animals or dust would not be regarded as proper or valid conduct in Islamic law.
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
Sales and trade are lawful and permitted in Islam. Their legitimacy is supported by the Qur’an, the Sunnah (teachings and traditions of Prophet Muhammad ﷺ), and the consensus (ijmāʿ) of Islamic jurists.
The Qur’an clearly allows trade and commercial transactions. Allah says: “But Allah has permitted trade” [2:275]. The Qur’an also encourages proper commercial dealings by stating: “Take witnesses whenever you make a commercial contract” [2:282]. Another verse says: “Let there be trade among you by mutual consent” [4:29]. Allah also says: “It is no crime for you to seek the bounty of your Lord” [2:198], meaning that earning through lawful trade and business is permissible.
The Sunnah of Prophet Muhammad ﷺ also supports lawful trade. The Prophet ﷺ was once asked which type of income is the best. He replied that the best income comes from a person’s own work and from every lawful and honest sale, meaning a transaction free from cheating and betrayal.
In another Ḥadīth, the Prophet ﷺ said: “A sale must be by mutual consent.” This shows that both the buyer and seller must willingly agree to the transaction without force or deception.
The Prophet ﷺ also accepted trade as a normal and lawful activity among people during his time. He praised honest business people by saying that a truthful and trustworthy trader will be among the prophets, the righteous, and the martyrs in the Hereafter. This Ḥadīth was narrated by Al-Tirmidhi and classified as ḥasan (good).
There is also agreement (ijmāʿ) among Muslims that sales are permissible. Islamic scholars agree that trade is necessary because it helps people fulfil their needs by cooperating and exchanging goods and services with one another. Therefore, the general rule in Islamic law is that all sales are permissible unless there is clear evidence that a specific type of sale is forbidden.
Al-Shafi‘i explained that the basic rule for all sales is permissibility as long as the transaction is carried out by capable people who willingly consent to it. However, any type of sale specifically prohibited by Prophet Muhammad ﷺ, or anything very similar to a prohibited transaction, is not allowed. Anything outside those prohibited matters remains lawful based on the Qur’anic verses that permit trade and commercial dealings.
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
The Hanafi jurists also explained that a commodity or property (māl) must be something desirable and capable of being stored for future use. An object can be recognised as property if people generally see it as useful and valuable.
Mustafa Al-Zarqa criticised this definition and suggested a broader meaning. He defined property as any identifiable object that has material value to people.
Based on the Hanafi view, services and simple rights are not usually considered commodities because they are not physical objects that can be stored. However, the majority of Islamic jurists (fuqahāʾ) consider services and rights capable of ownership because the real benefit of physical property often comes from its use (usufruct).
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
In all cases, a sale in Islamic law must be based on a contract that includes an offer (ījāb) and an acceptance (qabūl) between the parties involved.
Islamic Ethics, Documentation, and Proper Conduct in Sales
Islam places great importance on honesty, fairness, mercy, transparency, and proper documentation in business transactions.
One important ethical principle is avoiding excessive profit and unfair advantage over buyers. Islam allows traders to make reasonable profit, but it discourages exploitation and cheating. The Maliki School scholars explained that excessive unfairness may exist when profit reaches one third or more above the normal value. Therefore, profit within reasonable limits is generally acceptable.
Another important principle is truthful and complete disclosure of information. A seller must provide honest and complete details about the product, including its type, origin, quality, condition, and cost. Hiding defects, giving false information, or misleading customers goes against Islamic business ethics.
Al-Tirmidhi narrated a Ḥadīth on the authority of Rifāʿah in which the Prophet ﷺ said that most merchants will be resurrected on the Day of Judgment as sinners except those who fear Allah, deal kindly with customers, and speak truthfully in their business transactions.
Islam also encourages ease and kindness in buying and selling. Sellers and buyers should not be too harsh in negotiations or place unreasonable conditions on one another. They should avoid demanding prices that are unfairly high or unrealistically low.
Al-Bukhari narrated on the authority of Jābir that the Prophet ﷺ said: “Allah shows mercy to a person who is easy and gentle when selling, buying, and collecting debts.” This Ḥadīth teaches Muslims to act with patience, kindness, and flexibility in financial dealings.
Islam further teaches Muslims to avoid swearing by the name of Allah during sales, even if the person is speaking truthfully. Using Allah’s name frequently in business transactions is considered disrespectful and not suitable for the honour of Allah’s name.
The Qur’an criticises the misuse of oaths by saying: “Do not use Allah’s name in your oaths as an excuse against doing good, acting rightly, or making peace between people” [2:224].
In another Ḥadīth narrated by Al-Bukhari and Muslim ibn al-Hajjaj on the authority of Abū Hurayrah, the Prophet ﷺ said: “Swearing may help sell goods, but it removes their blessings.” This means that even if swearing helps attract buyers, it can remove the spiritual blessings (barakah) from the business.
Islam also encourages merchants to give charity regularly. Traders may sometimes fall into mistakes such as swearing, hiding information, cheating, poor behaviour, or taking excessive profit during business transactions. Giving charity helps cleanse and purify their earnings and actions.
Al-Tirmidhi, Abu Dawud, and Ibn Majah narrated a Ḥadīth on the authority of Qays ibn Abī Gharzah in which the Prophet ﷺ said: “O merchants, sins and wrongdoing are present in trade, so purify your sales with charity.” This teaches that charity is an important way to seek forgiveness and blessings in business dealings.
Islam also encourages the proper documentation of contracts, loans, debts, and delayed payment sales. It is recommended that financial agreements be written down clearly and supported by witnesses. This helps protect the rights of all parties, prevents disputes, and promotes trust and justice in society.
Allah instructed believers in the Qur’an [2:282] to record debts and financial contracts and to involve witnesses in such agreements. This verse forms the basis for the Islamic principle of documenting and witnessing financial transactions.
These teachings encourage Muslims to rely on honesty, trustworthiness, kindness, charity, proper documentation, and good character rather than greed, deception, or careless dealings in trade.
Case Scenario: Ethical Trade and Proper Documentation
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Ahmad offers to sell the bicycle, and Bilal willingly accepts the offer. Ahmad honestly informs Bilal that the bicycle has a small scratch and that one brake needs repair. During the discussion, Bilal asks for a small discount because he is a student, and Ahmad kindly agrees. Ahmad also avoids swearing by Allah to convince Bilal to buy the bicycle. This transaction reflects Islamic teachings of honesty, fairness, ease, and mutual consent.
Bilal is unable to pay the full amount immediately, so both parties agree that RM200 will be paid later. Ahmad and Bilal write down the agreement and ask two friends to witness the delayed payment arrangement. This follows the Islamic recommendation to document debts and financial contracts to avoid future disagreements.
After completing several sales during the month, Ahmad realises that he may have spoken harshly to some customers or charged slightly high prices in certain situations. To seek Allah’s forgiveness and purify his earnings, he gives part of his profit to charity. This follows the Islamic teaching that charity helps cleanse mistakes that may occur in business dealings.
In another example, Sarah pays a tutor for online teaching services. Although Hanafi jurists may not classify services as physical commodities, the majority of Islamic scholars allow such transactions because the service provides recognised value and benefit.
However, if Ahmad hides major defects in the bicycle, falsely claims that it is new, swears repeatedly by Allah to convince Bilal, cheats customers, refuses to document debts properly, or demands extremely unreasonable prices to exploit buyers, he would be violating Islamic business ethics. Likewise, forcing someone into a transaction, dealing harshly, or selling prohibited and worthless items such as dead animals or dust would not be regarded as proper or valid conduct in Islamic law.
- Published on
Islamic Law of Transaction - Charity, Honesty, and Ethical Conduct in Sales
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
Sales and trade are lawful and permitted in Islam. Their legitimacy is supported by the Qur’an, the Sunnah (teachings and traditions of Prophet Muhammad ﷺ), and the consensus (ijmāʿ) of Islamic jurists.
The Qur’an clearly allows trade and commercial transactions. Allah says: “But Allah has permitted trade” [2:275]. The Qur’an also encourages proper commercial dealings by stating: “Take witnesses whenever you make a commercial contract” [2:282]. Another verse says: “Let there be trade among you by mutual consent” [4:29]. Allah also says: “It is no crime for you to seek the bounty of your Lord” [2:198], meaning that earning through lawful trade and business is permissible.
The Sunnah of Prophet Muhammad ﷺ also supports lawful trade. The Prophet ﷺ was once asked which type of income is the best. He replied that the best income comes from a person’s own work and from every lawful and honest sale, meaning a transaction free from cheating and betrayal.
In another Ḥadīth, the Prophet ﷺ said: “A sale must be by mutual consent.” This shows that both the buyer and seller must willingly agree to the transaction without force or deception.
The Prophet ﷺ also accepted trade as a normal and lawful activity among people during his time. He praised honest business people by saying that a truthful and trustworthy trader will be among the prophets, the righteous, and the martyrs in the Hereafter. This Ḥadīth was narrated by Al-Tirmidhi and classified as ḥasan (good).
There is also agreement (ijmāʿ) among Muslims that sales are permissible. Islamic scholars agree that trade is necessary because it helps people fulfil their needs by cooperating and exchanging goods and services with one another. Therefore, the general rule in Islamic law is that all sales are permissible unless there is clear evidence that a specific type of sale is forbidden.
Al-Shafi‘i explained that the basic rule for all sales is permissibility as long as the transaction is carried out by capable people who willingly consent to it. However, any type of sale specifically prohibited by Prophet Muhammad ﷺ, or anything very similar to a prohibited transaction, is not allowed. Anything outside those prohibited matters remains lawful based on the Qur’anic verses that permit trade and commercial dealings.
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
The Hanafi jurists also explained that a commodity or property (māl) must be something desirable and capable of being stored for future use. An object can be recognised as property if people generally see it as useful and valuable.
Mustafa Al-Zarqa criticised this definition and suggested a broader meaning. He defined property as any identifiable object that has material value to people.
Based on the Hanafi view, services and simple rights are not usually considered commodities because they are not physical objects that can be stored. However, the majority of Islamic jurists (fuqahāʾ) consider services and rights capable of ownership because the real benefit of physical property often comes from its use (usufruct).
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
In all cases, a sale in Islamic law must be based on a contract that includes an offer (ījāb) and an acceptance (qabūl) between the parties involved.
Islamic Ethics, Charity, and Proper Conduct in Sales
Islam places great importance on honesty, fairness, mercy, and good manners in business transactions.
One important ethical principle is avoiding excessive profit and unfair advantage over buyers. Islam allows traders to make reasonable profit, but it discourages exploitation and cheating. The Maliki School scholars explained that excessive unfairness may exist when profit reaches one third or more above the normal value. Therefore, profit within reasonable limits is generally acceptable.
Another important principle is truthful and complete disclosure of information. A seller must provide honest and complete details about the product, including its type, origin, quality, condition, and cost. Hiding defects, giving false information, or misleading customers goes against Islamic business ethics.
Al-Tirmidhi narrated a Ḥadīth on the authority of Rifāʿah in which the Prophet ﷺ said that most merchants will be resurrected on the Day of Judgment as sinners except those who fear Allah, deal kindly with customers, and speak truthfully in their business transactions.
Islam also encourages ease and kindness in buying and selling. Sellers and buyers should not be too harsh in negotiations or place unreasonable conditions on one another. They should avoid demanding prices that are unfairly high or unrealistically low.
Al-Bukhari narrated on the authority of Jābir that the Prophet ﷺ said: “Allah shows mercy to a person who is easy and gentle when selling, buying, and collecting debts.” This Ḥadīth teaches Muslims to act with patience, kindness, and flexibility in financial dealings.
Islam further teaches Muslims to avoid swearing by the name of Allah during sales, even if the person is speaking truthfully. Using Allah’s name frequently in business transactions is considered disrespectful and not suitable for the honour of Allah’s name.
The Qur’an criticises the misuse of oaths by saying: “Do not use Allah’s name in your oaths as an excuse against doing good, acting rightly, or making peace between people” [2:224].
In another Ḥadīth narrated by Al-Bukhari and Muslim ibn al-Hajjaj on the authority of Abū Hurayrah, the Prophet ﷺ said: “Swearing may help sell goods, but it removes their blessings.” This means that even if swearing helps attract buyers, it can remove the spiritual blessings (barakah) from the business.
Islam also encourages merchants to give charity regularly. Traders may sometimes fall into mistakes such as swearing, hiding information, cheating, poor behaviour, or taking excessive profit during business transactions. Giving charity helps cleanse and purify their earnings and actions.
Al-Tirmidhi, Abu Dawud, and Ibn Majah narrated a Ḥadīth on the authority of Qays ibn Abī Gharzah in which the Prophet ﷺ said: “O merchants, sins and wrongdoing are present in trade, so purify your sales with charity.” This teaches that charity is an important way to seek forgiveness and blessings in business dealings.
These teachings encourage Muslims to rely on honesty, trustworthiness, kindness, charity, and good character rather than greed, deception, or excessive oaths in trade.
Case Scenario: Ethical Business and Charity in Trade
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Ahmad offers to sell the bicycle, and Bilal willingly accepts the offer. Ahmad honestly informs Bilal that the bicycle has a small scratch and that one brake needs repair. During the discussion, Bilal asks for a small discount because he is a student, and Ahmad kindly agrees. Ahmad also avoids swearing by Allah to convince Bilal to buy the bicycle. This transaction reflects Islamic teachings of honesty, fairness, ease, and mutual consent.
After completing several sales during the month, Ahmad realises that he may have spoken harshly to some customers or charged slightly high prices in certain situations. To seek Allah’s forgiveness and purify his earnings, he gives part of his profit to charity. This follows the Islamic teaching that charity helps cleanse mistakes that may occur in business dealings.
In another example, Sarah pays a tutor for online teaching services. Although Hanafi jurists may not classify services as physical commodities, the majority of Islamic scholars allow such transactions because the service provides recognised value and benefit.
However, if Ahmad hides major defects in the bicycle, falsely claims that it is new, swears repeatedly by Allah to convince Bilal, cheats customers, or demands extremely unreasonable prices to exploit buyers, he would be violating Islamic business ethics. Likewise, forcing someone into a transaction, dealing harshly, or selling prohibited and worthless items such as dead animals or dust would not be regarded as proper or valid conduct in Islamic law.
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
Sales and trade are lawful and permitted in Islam. Their legitimacy is supported by the Qur’an, the Sunnah (teachings and traditions of Prophet Muhammad ﷺ), and the consensus (ijmāʿ) of Islamic jurists.
The Qur’an clearly allows trade and commercial transactions. Allah says: “But Allah has permitted trade” [2:275]. The Qur’an also encourages proper commercial dealings by stating: “Take witnesses whenever you make a commercial contract” [2:282]. Another verse says: “Let there be trade among you by mutual consent” [4:29]. Allah also says: “It is no crime for you to seek the bounty of your Lord” [2:198], meaning that earning through lawful trade and business is permissible.
The Sunnah of Prophet Muhammad ﷺ also supports lawful trade. The Prophet ﷺ was once asked which type of income is the best. He replied that the best income comes from a person’s own work and from every lawful and honest sale, meaning a transaction free from cheating and betrayal.
In another Ḥadīth, the Prophet ﷺ said: “A sale must be by mutual consent.” This shows that both the buyer and seller must willingly agree to the transaction without force or deception.
The Prophet ﷺ also accepted trade as a normal and lawful activity among people during his time. He praised honest business people by saying that a truthful and trustworthy trader will be among the prophets, the righteous, and the martyrs in the Hereafter. This Ḥadīth was narrated by Al-Tirmidhi and classified as ḥasan (good).
There is also agreement (ijmāʿ) among Muslims that sales are permissible. Islamic scholars agree that trade is necessary because it helps people fulfil their needs by cooperating and exchanging goods and services with one another. Therefore, the general rule in Islamic law is that all sales are permissible unless there is clear evidence that a specific type of sale is forbidden.
Al-Shafi‘i explained that the basic rule for all sales is permissibility as long as the transaction is carried out by capable people who willingly consent to it. However, any type of sale specifically prohibited by Prophet Muhammad ﷺ, or anything very similar to a prohibited transaction, is not allowed. Anything outside those prohibited matters remains lawful based on the Qur’anic verses that permit trade and commercial dealings.
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
The Hanafi jurists also explained that a commodity or property (māl) must be something desirable and capable of being stored for future use. An object can be recognised as property if people generally see it as useful and valuable.
Mustafa Al-Zarqa criticised this definition and suggested a broader meaning. He defined property as any identifiable object that has material value to people.
Based on the Hanafi view, services and simple rights are not usually considered commodities because they are not physical objects that can be stored. However, the majority of Islamic jurists (fuqahāʾ) consider services and rights capable of ownership because the real benefit of physical property often comes from its use (usufruct).
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
In all cases, a sale in Islamic law must be based on a contract that includes an offer (ījāb) and an acceptance (qabūl) between the parties involved.
Islamic Ethics, Charity, and Proper Conduct in Sales
Islam places great importance on honesty, fairness, mercy, and good manners in business transactions.
One important ethical principle is avoiding excessive profit and unfair advantage over buyers. Islam allows traders to make reasonable profit, but it discourages exploitation and cheating. The Maliki School scholars explained that excessive unfairness may exist when profit reaches one third or more above the normal value. Therefore, profit within reasonable limits is generally acceptable.
Another important principle is truthful and complete disclosure of information. A seller must provide honest and complete details about the product, including its type, origin, quality, condition, and cost. Hiding defects, giving false information, or misleading customers goes against Islamic business ethics.
Al-Tirmidhi narrated a Ḥadīth on the authority of Rifāʿah in which the Prophet ﷺ said that most merchants will be resurrected on the Day of Judgment as sinners except those who fear Allah, deal kindly with customers, and speak truthfully in their business transactions.
Islam also encourages ease and kindness in buying and selling. Sellers and buyers should not be too harsh in negotiations or place unreasonable conditions on one another. They should avoid demanding prices that are unfairly high or unrealistically low.
Al-Bukhari narrated on the authority of Jābir that the Prophet ﷺ said: “Allah shows mercy to a person who is easy and gentle when selling, buying, and collecting debts.” This Ḥadīth teaches Muslims to act with patience, kindness, and flexibility in financial dealings.
Islam further teaches Muslims to avoid swearing by the name of Allah during sales, even if the person is speaking truthfully. Using Allah’s name frequently in business transactions is considered disrespectful and not suitable for the honour of Allah’s name.
The Qur’an criticises the misuse of oaths by saying: “Do not use Allah’s name in your oaths as an excuse against doing good, acting rightly, or making peace between people” [2:224].
In another Ḥadīth narrated by Al-Bukhari and Muslim ibn al-Hajjaj on the authority of Abū Hurayrah, the Prophet ﷺ said: “Swearing may help sell goods, but it removes their blessings.” This means that even if swearing helps attract buyers, it can remove the spiritual blessings (barakah) from the business.
Islam also encourages merchants to give charity regularly. Traders may sometimes fall into mistakes such as swearing, hiding information, cheating, poor behaviour, or taking excessive profit during business transactions. Giving charity helps cleanse and purify their earnings and actions.
Al-Tirmidhi, Abu Dawud, and Ibn Majah narrated a Ḥadīth on the authority of Qays ibn Abī Gharzah in which the Prophet ﷺ said: “O merchants, sins and wrongdoing are present in trade, so purify your sales with charity.” This teaches that charity is an important way to seek forgiveness and blessings in business dealings.
These teachings encourage Muslims to rely on honesty, trustworthiness, kindness, charity, and good character rather than greed, deception, or excessive oaths in trade.
Case Scenario: Ethical Business and Charity in Trade
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Ahmad offers to sell the bicycle, and Bilal willingly accepts the offer. Ahmad honestly informs Bilal that the bicycle has a small scratch and that one brake needs repair. During the discussion, Bilal asks for a small discount because he is a student, and Ahmad kindly agrees. Ahmad also avoids swearing by Allah to convince Bilal to buy the bicycle. This transaction reflects Islamic teachings of honesty, fairness, ease, and mutual consent.
After completing several sales during the month, Ahmad realises that he may have spoken harshly to some customers or charged slightly high prices in certain situations. To seek Allah’s forgiveness and purify his earnings, he gives part of his profit to charity. This follows the Islamic teaching that charity helps cleanse mistakes that may occur in business dealings.
In another example, Sarah pays a tutor for online teaching services. Although Hanafi jurists may not classify services as physical commodities, the majority of Islamic scholars allow such transactions because the service provides recognised value and benefit.
However, if Ahmad hides major defects in the bicycle, falsely claims that it is new, swears repeatedly by Allah to convince Bilal, cheats customers, or demands extremely unreasonable prices to exploit buyers, he would be violating Islamic business ethics. Likewise, forcing someone into a transaction, dealing harshly, or selling prohibited and worthless items such as dead animals or dust would not be regarded as proper or valid conduct in Islamic law.
- Published on
Islamic Law of Transaction - Honesty, Avoidance of Swearing, and Ethics in Sales
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
Sales and trade are lawful and permitted in Islam. Their legitimacy is supported by the Qur’an, the Sunnah (teachings and traditions of Prophet Muhammad ﷺ), and the consensus (ijmāʿ) of Islamic jurists.
The Qur’an clearly allows trade and commercial transactions. Allah says: “But Allah has permitted trade” [2:275]. The Qur’an also encourages proper commercial dealings by stating: “Take witnesses whenever you make a commercial contract” [2:282]. Another verse says: “Let there be trade among you by mutual consent” [4:29]. Allah also says: “It is no crime for you to seek the bounty of your Lord” [2:198], meaning that earning through lawful trade and business is permissible.
The Sunnah of Prophet Muhammad ﷺ also supports lawful trade. The Prophet ﷺ was once asked which type of income is the best. He replied that the best income comes from a person’s own work and from every lawful and honest sale, meaning a transaction free from cheating and betrayal.
In another Ḥadīth, the Prophet ﷺ said: “A sale must be by mutual consent.” This shows that both the buyer and seller must willingly agree to the transaction without force or deception.
The Prophet ﷺ also accepted trade as a normal and lawful activity among people during his time. He praised honest business people by saying that a truthful and trustworthy trader will be among the prophets, the righteous, and the martyrs in the Hereafter. This Ḥadīth was narrated by Al-Tirmidhi and classified as ḥasan (good).
There is also agreement (ijmāʿ) among Muslims that sales are permissible. Islamic scholars agree that trade is necessary because it helps people fulfil their needs by cooperating and exchanging goods and services with one another. Therefore, the general rule in Islamic law is that all sales are permissible unless there is clear evidence that a specific type of sale is forbidden.
Al-Shafi‘i explained that the basic rule for all sales is permissibility as long as the transaction is carried out by capable people who willingly consent to it. However, any type of sale specifically prohibited by Prophet Muhammad ﷺ, or anything very similar to a prohibited transaction, is not allowed. Anything outside those prohibited matters remains lawful based on the Qur’anic verses that permit trade and commercial dealings.
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
The Hanafi jurists also explained that a commodity or property (māl) must be something desirable and capable of being stored for future use. An object can be recognised as property if people generally see it as useful and valuable.
Mustafa Al-Zarqa criticised this definition and suggested a broader meaning. He defined property as any identifiable object that has material value to people.
Based on the Hanafi view, services and simple rights are not usually considered commodities because they are not physical objects that can be stored. However, the majority of Islamic jurists (fuqahāʾ) consider services and rights capable of ownership because the real benefit of physical property often comes from its use (usufruct).
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
In all cases, a sale in Islamic law must be based on a contract that includes an offer (ījāb) and an acceptance (qabūl) between the parties involved.
Islamic Ethics and Proper Conduct in Sales
Islam places great importance on honesty, fairness, mercy, and good manners in business transactions.
One important ethical principle is avoiding excessive profit and unfair advantage over buyers. Islam allows traders to make reasonable profit, but it discourages exploitation and cheating. The Maliki School scholars explained that excessive unfairness may exist when profit reaches one third or more above the normal value. Therefore, profit within reasonable limits is generally acceptable.
Another important principle is truthful and complete disclosure of information. A seller must provide honest and complete details about the product, including its type, origin, quality, condition, and cost. Hiding defects, giving false information, or misleading customers goes against Islamic business ethics.
Al-Tirmidhi narrated a Ḥadīth on the authority of Rifāʿah in which the Prophet ﷺ said that most merchants will be resurrected on the Day of Judgment as sinners except those who fear Allah, deal kindly with customers, and speak truthfully in their business transactions.
Islam also encourages ease and kindness in buying and selling. Sellers and buyers should not be too harsh in negotiations or place unreasonable conditions on one another. They should avoid demanding prices that are unfairly high or unrealistically low.
Al-Bukhari narrated on the authority of Jābir that the Prophet ﷺ said: “Allah shows mercy to a person who is easy and gentle when selling, buying, and collecting debts.” This Ḥadīth teaches Muslims to act with patience, kindness, and flexibility in financial dealings.
Islam further teaches Muslims to avoid swearing by the name of Allah during sales, even if the person is speaking truthfully. Using Allah’s name frequently in business transactions is considered disrespectful and not suitable for the honour of Allah’s name.
The Qur’an criticises the misuse of oaths by saying: “Do not use Allah’s name in your oaths as an excuse against doing good, acting rightly, or making peace between people” [2:224].
In another Ḥadīth narrated by Al-Bukhari and Muslim ibn al-Hajjaj on the authority of Abū Hurayrah, the Prophet ﷺ said: “Swearing may help sell goods, but it removes their blessings.” This means that even if swearing helps attract buyers, it can remove the spiritual blessings (barakah) from the business.
These teachings encourage Muslims to rely on honesty, trustworthiness, and good character rather than excessive promises or oaths in trade.
Case Scenario: Ethical and Unethical Behaviour in Sales
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Ahmad offers to sell the bicycle, and Bilal willingly accepts the offer. Ahmad honestly informs Bilal that the bicycle has a small scratch and that one brake needs repair. During the discussion, Bilal asks for a small discount because he is a student, and Ahmad kindly agrees. This transaction reflects Islamic teachings of honesty, fairness, ease, and mutual consent.
Ahmad also avoids swearing by Allah to convince Bilal to buy the bicycle. Instead, he relies on truthful explanation and good manners. This follows the Islamic teaching that business should be conducted with sincerity and respect for Allah’s name.
In another example, Sarah pays a tutor for online teaching services. Although Hanafi jurists may not classify services as physical commodities, the majority of Islamic scholars allow such transactions because the service provides recognised value and benefit.
However, if Ahmad hides major defects in the bicycle, falsely claims that it is new, swears repeatedly by Allah to convince Bilal, or demands an extremely unreasonable price to exploit the buyer, he would be violating Islamic business ethics. Likewise, forcing someone into a transaction, dealing harshly, or selling prohibited and worthless items such as dead animals or dust would not be regarded as proper or valid conduct in Islamic law.
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
Sales and trade are lawful and permitted in Islam. Their legitimacy is supported by the Qur’an, the Sunnah (teachings and traditions of Prophet Muhammad ﷺ), and the consensus (ijmāʿ) of Islamic jurists.
The Qur’an clearly allows trade and commercial transactions. Allah says: “But Allah has permitted trade” [2:275]. The Qur’an also encourages proper commercial dealings by stating: “Take witnesses whenever you make a commercial contract” [2:282]. Another verse says: “Let there be trade among you by mutual consent” [4:29]. Allah also says: “It is no crime for you to seek the bounty of your Lord” [2:198], meaning that earning through lawful trade and business is permissible.
The Sunnah of Prophet Muhammad ﷺ also supports lawful trade. The Prophet ﷺ was once asked which type of income is the best. He replied that the best income comes from a person’s own work and from every lawful and honest sale, meaning a transaction free from cheating and betrayal.
In another Ḥadīth, the Prophet ﷺ said: “A sale must be by mutual consent.” This shows that both the buyer and seller must willingly agree to the transaction without force or deception.
The Prophet ﷺ also accepted trade as a normal and lawful activity among people during his time. He praised honest business people by saying that a truthful and trustworthy trader will be among the prophets, the righteous, and the martyrs in the Hereafter. This Ḥadīth was narrated by Al-Tirmidhi and classified as ḥasan (good).
There is also agreement (ijmāʿ) among Muslims that sales are permissible. Islamic scholars agree that trade is necessary because it helps people fulfil their needs by cooperating and exchanging goods and services with one another. Therefore, the general rule in Islamic law is that all sales are permissible unless there is clear evidence that a specific type of sale is forbidden.
Al-Shafi‘i explained that the basic rule for all sales is permissibility as long as the transaction is carried out by capable people who willingly consent to it. However, any type of sale specifically prohibited by Prophet Muhammad ﷺ, or anything very similar to a prohibited transaction, is not allowed. Anything outside those prohibited matters remains lawful based on the Qur’anic verses that permit trade and commercial dealings.
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
The Hanafi jurists also explained that a commodity or property (māl) must be something desirable and capable of being stored for future use. An object can be recognised as property if people generally see it as useful and valuable.
Mustafa Al-Zarqa criticised this definition and suggested a broader meaning. He defined property as any identifiable object that has material value to people.
Based on the Hanafi view, services and simple rights are not usually considered commodities because they are not physical objects that can be stored. However, the majority of Islamic jurists (fuqahāʾ) consider services and rights capable of ownership because the real benefit of physical property often comes from its use (usufruct).
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
In all cases, a sale in Islamic law must be based on a contract that includes an offer (ījāb) and an acceptance (qabūl) between the parties involved.
Islamic Ethics and Proper Conduct in Sales
Islam places great importance on honesty, fairness, mercy, and good manners in business transactions.
One important ethical principle is avoiding excessive profit and unfair advantage over buyers. Islam allows traders to make reasonable profit, but it discourages exploitation and cheating. The Maliki School scholars explained that excessive unfairness may exist when profit reaches one third or more above the normal value. Therefore, profit within reasonable limits is generally acceptable.
Another important principle is truthful and complete disclosure of information. A seller must provide honest and complete details about the product, including its type, origin, quality, condition, and cost. Hiding defects, giving false information, or misleading customers goes against Islamic business ethics.
Al-Tirmidhi narrated a Ḥadīth on the authority of Rifāʿah in which the Prophet ﷺ said that most merchants will be resurrected on the Day of Judgment as sinners except those who fear Allah, deal kindly with customers, and speak truthfully in their business transactions.
Islam also encourages ease and kindness in buying and selling. Sellers and buyers should not be too harsh in negotiations or place unreasonable conditions on one another. They should avoid demanding prices that are unfairly high or unrealistically low.
Al-Bukhari narrated on the authority of Jābir that the Prophet ﷺ said: “Allah shows mercy to a person who is easy and gentle when selling, buying, and collecting debts.” This Ḥadīth teaches Muslims to act with patience, kindness, and flexibility in financial dealings.
Islam further teaches Muslims to avoid swearing by the name of Allah during sales, even if the person is speaking truthfully. Using Allah’s name frequently in business transactions is considered disrespectful and not suitable for the honour of Allah’s name.
The Qur’an criticises the misuse of oaths by saying: “Do not use Allah’s name in your oaths as an excuse against doing good, acting rightly, or making peace between people” [2:224].
In another Ḥadīth narrated by Al-Bukhari and Muslim ibn al-Hajjaj on the authority of Abū Hurayrah, the Prophet ﷺ said: “Swearing may help sell goods, but it removes their blessings.” This means that even if swearing helps attract buyers, it can remove the spiritual blessings (barakah) from the business.
These teachings encourage Muslims to rely on honesty, trustworthiness, and good character rather than excessive promises or oaths in trade.
Case Scenario: Ethical and Unethical Behaviour in Sales
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Ahmad offers to sell the bicycle, and Bilal willingly accepts the offer. Ahmad honestly informs Bilal that the bicycle has a small scratch and that one brake needs repair. During the discussion, Bilal asks for a small discount because he is a student, and Ahmad kindly agrees. This transaction reflects Islamic teachings of honesty, fairness, ease, and mutual consent.
Ahmad also avoids swearing by Allah to convince Bilal to buy the bicycle. Instead, he relies on truthful explanation and good manners. This follows the Islamic teaching that business should be conducted with sincerity and respect for Allah’s name.
In another example, Sarah pays a tutor for online teaching services. Although Hanafi jurists may not classify services as physical commodities, the majority of Islamic scholars allow such transactions because the service provides recognised value and benefit.
However, if Ahmad hides major defects in the bicycle, falsely claims that it is new, swears repeatedly by Allah to convince Bilal, or demands an extremely unreasonable price to exploit the buyer, he would be violating Islamic business ethics. Likewise, forcing someone into a transaction, dealing harshly, or selling prohibited and worthless items such as dead animals or dust would not be regarded as proper or valid conduct in Islamic law.