Fiqh Of Business And Halal Investing

Hacene Chebbani


Channel: Hacene Chebbani

File Size: 62.15MB

Episode Notes

Share Page

Transcript ©

AI generated text may display inaccurate or offensive information that doesn’t represent Muslim Central's views. No part of this transcript may be copied or referenced or transmitted in any way whatsoever.

00:02:07--> 00:02:07


00:02:10--> 00:02:13

So, lovely to start your

00:02:15--> 00:02:15


00:02:17--> 00:02:18

and hello investing

00:02:19--> 00:02:20


00:02:21--> 00:02:23

you know everyone knows the importance of

00:02:24--> 00:02:26

knowing this endless

00:02:27--> 00:02:30

response of knowledge or dealing with life.

00:04:10--> 00:04:12

Another formally known issue

00:04:14--> 00:04:17

volume sales or modern financial system

00:04:18--> 00:04:31

do you still happen during the time of fossilize I sell in different ways in different forms. But of course, you know, life is you know people are inventing people are inventing new methods of doing business.

00:04:32--> 00:04:38

And it's very hard sometimes to catch up to understand

00:04:39--> 00:04:45

what's going on in the market. It's very difficult sometimes to understand so many new

00:04:46--> 00:04:59

new products that are being made on a regular basis and being provided for customers or for investors in the market, so, but at

00:05:00--> 00:05:02

least what we try to do as muslims

00:05:04--> 00:05:08

in these classes will relate to Allah is to understand the basics

00:05:09--> 00:05:15

of doing business, how do we do business? What are the things that we are supposed to stay away from

00:05:16--> 00:05:25

and how to do it in a halal way to the best of our ability, because when we say here how to navigate around it,

00:05:26--> 00:05:31

it means that river is found in every almost in every transaction.

00:05:32--> 00:05:38

You know this financial system is based on this concept of interest and time value of money.

00:05:40--> 00:06:27

But there is a way how if you know what is halal and what is haram and you understand the essence of Riba and the essence of these transactions, we try as Muslims as a set to navigate around these problems and try to make money and it is possible it is possible and if we say something is halal, why it's halal if we say something is haram, why it's hard. This is the most important thing there are many people, many people when they come to the masjid and ask about a certain you know, a transaction or the ask about some products or some you know some transactions that are found in the market. Their main concern is to know if it is halal or haram and they're satisfied with the answer

00:06:27--> 00:06:28

which Allah is headed or haram.

00:06:30--> 00:06:55

Many of them do not ask why or they don't want to know. So it's very important to correct our intention, we're starting our Halaqa here the intention should be to learn the fifth, often more omelette, filled with business transactions, not because you want to buy a house in a halal way. And just waiting for your husband to say to tell you this company is doing offering some Halal agreements

00:06:56--> 00:07:32

or this option is filled in is available for you. And that says this is what you want. No one we need to try. It's a bird. It's a form of anywhere that to learn the fix to understand your deen. So before you fasted Ramadan, you need to understand you know, the type of fasting before you start praying, we need to understand the basics of this Eva the effect of salaat so when it comes to doing business also, same thing. We need to come with this intention, you know, understand to understand have a better understanding.

00:07:34--> 00:07:43

Now and then we'll inshallah at the end we'll talk about also stock and crypto trading and talk a little bit about cryptocurrencies and,

00:07:44--> 00:08:26

and what's the ruling about mixed, you know, mixed companies that are involved in Halal activities, but they have some haram elements. So we'll, we'll talk about the different opinions of Muslims collars and what and what what is my recommendation? You know, so there are some health options inshallah we'll talk about them, but we will start with the basic rules basically Levita Allah before that, I believe this is a beautiful dua I will try to start every Halaqa with a beautiful tool. And this rod he said what was recommended by the McGraw pay Rahmatullah ally

00:08:27--> 00:08:38

so he said it's a very one of the best two arts along mean yes, Luca Raja and as the meta analyst tools any meta mean Cooley bill will pose a bill Jannetty when Nigeria Tamina na

00:08:40--> 00:08:54

O Allah asked her determination to follow the right guidance and as he Metalla rushed, it is important why because sometimes you know something is good for you, but you are not you don't have the ability to do it. You don't have the power you don't have the will to do it.

00:08:55--> 00:09:03

A person might feel that he should be going to the mercy to offer the five daily prayers with the Muslims but you don't have the will

00:09:04--> 00:09:13

to do it. He's lazy or he should be you know exercising ya should be doing this and this and this, but there is no whim no Azeema

00:09:15--> 00:09:59

no determination. He knows what is right and wrong. But he doesn't have the power to you know, follow and follow the follow the right guidance. So this here is very important with any midterm equilibrium, beneficial share in every goodness, whether whether it's in Africa or in this worldly life, so that's a beautiful dua here will fossa Bill Jana and success to attain Jana and as yet Amina Nora safety from hellfire and why we added all the old AMA and actually the last three parts of this dua are found in what Hadith in one day. And the first part allah how many I said, Okay. Azima terminology is found in another

00:10:00--> 00:10:09

Have a beautiful day, but the other day is long. So remember who I am believes that I have to learn that this is one of the most beautiful to us.

00:10:10--> 00:10:35

What I can promise is I have the translation, I'll just put it on the last Infosys board in this size and the size of the system. So next week when you come find that there, the Arabic dry with the English, I have it printed in the office, but I didn't find the time to put it in the notice board. And next week, the shadow will have a different too and we'll have it from the ready for you on the notice board.

00:10:37--> 00:10:46

Now, it is important to start with this introduction here to know what does Islam care about? What does Islam protect?

00:10:47--> 00:10:54

And these are called Mikaze. The Sharia the main objectives of Sharia, so number one is religion.

00:10:56--> 00:11:00

Islam Allah subhanaw taala wants you to protect your religion to take care of your deen

00:11:01--> 00:11:04

because that will be in sha Allah.

00:11:06--> 00:11:14

If you protect your deen if you have a better relationship with Allah subhanaw taala it will be your ticket to gender Bismillah AR

00:11:15--> 00:11:27

and that will be the way you save yourself on the day of judgment and should be number one priority. So because of the Sharia and Cobra have the deen protection of Deen religion that's why sometimes Muslims

00:11:28--> 00:11:59

have the obligation we become under the obligation to leave a certain place if they are not able to practice their Deen if they're not able to offer the five daily prayers. If they're not able to offer my prayer, they're not able to practice the deen or the main SHA you know the main obligations of the team then it might become an obligation upon them to leave that place and go to another place. So leave everything they lived their business and their land for the sake of protecting their team.

00:12:00--> 00:12:48

Number two is enough's human life. And SWAT is a major sin to kill someone without valid to kill someone without a valid reason. It's a crime. It's a measure of crime in Islam, and Apple, the power of intellect. That's why it's haram to to take to drink alcohol or to take intoxicants. So because you lose the power of thinking in the power of, you know, making a decision and thinking in the right way. Number four, a lot of the honored your reputation, your dignity. That's why it's a major sin to attack the honor of someone else without a valid reason. You know, so reputation, honor and dignity of other people need to be protected. And number five is immense wealth, and that's why we

00:12:48--> 00:12:52

have these rules of business.

00:12:53--> 00:12:59

Someone you know, no one has the right to take your your property without a valid reason.

00:13:00--> 00:13:40

Even through transactions, if a transaction contains some injustice, boom, then it becomes haram. Why? Because the person would be through this transaction, he's not taking your money, he's not stealing your money. He's doing business with you, but because it contains some blood or uncertainty or volume, so form of injustice, then this, this transaction might become forbidden and haram because of this. So wealth is protected. And Allah Subhana Allah wants us to protect our wealth. And that's why as I said, we have the section in the Islamic fearful Islamic jurisprudence as you're calling Mohammed and Maria.

00:13:42--> 00:13:51

Now, when we talk about the sources of legislation, we usually mentioned the Quran and Sunnah as main sources of fear of the Shri

00:13:52--> 00:14:31

ossola Tishreen. But we have the issue map, which is a scholarly consensus. If the redeemer of Ahmed Mohamed Salah Allah, Allah Salems agree on something. We make Ishmael something after his death after he passed away. There is no Ishmael during the time of Rasulillah Salam because the war he was still coming down Quran was revealed to him and he was conveying the message of Islam when we have Allah subhanaw taala to the Muslim ummah. And he had the authority of course to teach the Ummah and to make rulings. So the Sunnah is another source major source of legislation.

00:14:32--> 00:14:57

But this man has to take after his death. So if a group of Muslim scholars agree all Muslim scholars who have the ability to make history had they're qualified scholars, they're qualified to make history had they agree on something it might become a Sharia and accepted and confirmed Sharia ruling in Islam. TS analogy they use it the route Emma they use it as a fourth

00:14:59--> 00:15:00

you know, so

00:15:00--> 00:15:21

also flesh installation. And it is basically to, you know, it's used to find the ruling of the new things that are not things that don't have any ruling in the Quran and the Sunnah. So, I am a scholar, Muslim scholar, we'll come to something. Then we asked about the ruling of this case for example.

00:15:22--> 00:15:27

And then he has a duty to look into the Quran, then the Sunnah

00:15:28--> 00:16:19

or the Ismar of the Muslim scholars, if nothing is there, then he can he has the right. If he is qualified to do this, he had to compare it with other cases with other incidents. I will give you an example. If we have a type of a drink, we don't know the ruining of this drink if it is halal or haram. By default it should be halal, unless there is some problems with it. But this ad will find that this drink is intoxicant. So it's like Hummer, what is the effective cause 11 Levita Harryman cover the effective cause of making the Hummer Hara is being intoxicant, intoxication right. So this intoxication is found in another substance in another drink. So this drink yes, they drink, there is

00:16:19--> 00:17:12

no ruling about it in the Quran and Sunnah. But it has the same problem, similar problem like any type of alcohol or wine. So, it will it will be given the ruling will be extended to this new product or new drink the ruling will be extended via PS an analogy. Masala masala, the orlimar looked at the masala the benefits, some of them are rejected. Why rejected because there is something against them in the Quran. It's a Muslim, but it is rejected. What could be rejected Muslim benefit method for example, two people agree to make a contract alone someone will give a loan to someone, the other person needs the loan. The second person who is asking for the loan and

00:17:12--> 00:17:58

the first the lender will tell him, I'll give you the loan, but you pay me some extra money interest premium, I give you 1000 You pay me back Bay back 11 1100. So, there is a Muslim half for the first for the lender and there is a Muslim half for the borrower, there is a benefit for the bore, he needs money, he needs this $1,000 And there is a benefit for the lender. But this benefit is rejected by the Sharia. Why because Sharia deals with contract as an interest based transaction and therefore, it is not accepted there is a masala masala that is considered better for example,

00:17:59--> 00:18:49

if someone wants to make a transaction with someone else, buy something from a company and he makes it to condition in the contract that the company will deliver the product to his to his place, then this is accepted and it is endorsed by the Sharia and it is valid and there is nothing wrong with it. There is are some masala that are not known. The so there is nothing against them in the Sharia. And there is nothing that is endorsed endorsing them the real the rule and look at them and the makeup she had the neck he had and they make the effort to read a ruling about them because it's something new we have nothing against it in the Sharia. We have nothing that is endorsing 18 Sharia

00:18:49--> 00:19:01

or supporting it nothing no similar case. So they look into this masala and he makes he had sometimes they have different opinions based on their HDL. On this Masada

00:19:03--> 00:19:06

said the Vera ad blocking the means of evil.

00:19:07--> 00:19:21

Sometimes the transaction would be fine in itself would be accepted but because it leads to evil, it leads to something forbidden. I was asked recently about

00:19:23--> 00:19:29

three credit card companies and their stocks, their stocks,

00:19:30--> 00:19:33

MasterCard and Visa and American Express.

00:19:35--> 00:19:52

So they were classified as Sharia compliant by an app. It's called Islamically I guess why? Because they said these companies are only payment processing companies. We don't benefit from interest.

00:19:54--> 00:20:00

Who is taking the interest is the issuer of the credit card like TD for example or RB

00:20:00--> 00:20:04

See, or any other company, Walmart or any other company,

00:20:05--> 00:20:20

but visa is not collecting any interest is a processing payment company. It's like a pipeline taking money from the creditor credit TD for example, in this case

00:20:21--> 00:20:39

on behalf of the customer the loan is given to the customer who is buying milk or bread or buying a car from the seller. So, we have the seller, we have the customer, we have the issuer of the card and we have visa here visa is not collecting interest

00:20:41--> 00:20:47

who is collecting the interest is TD the bank which issued the card the credit card,

00:20:49--> 00:20:56

but visa is the processing payment company it is doing is providing the infrastructure

00:20:57--> 00:20:59

for this operation, the whole operation.

00:21:01--> 00:21:08

So, I the brother told me what do you think Yanni, do you think their stock will be Sharia compliant I told him no way

00:21:09--> 00:21:16

cannot be Sharia compliant because they are providing the infrastructure for this business interest based transactions.

00:21:18--> 00:21:38

If if they don't provide their service, these cards will be useless. The card that is issued by issued by TD or any bank or any other financial institution will be useless, because there will be no payment here. So visa is only taking money from facilitating the transfer of money from

00:21:40--> 00:22:06

from as I said, the issuer, the bank, the lender, to the merchant, the merchant is not taking the loan, the merchant is receiving payment for what he sold, the subject of sale or the product that he sold, who's taking the loan, the card header yourself you you are taking the loan, taking the loan not from visa, taking the loan from TD or from Bank of Montreal.

00:22:08--> 00:22:15

So I told the brother that you know these companies cannot be Sharia compliant, why because they are providing the

00:22:16--> 00:22:19

they're talking here about SIdora ad blocking the means of evil

00:22:21--> 00:22:28

walking the means if we say that they are not Sharia compliant, and they shouldn't be there, then this business will stop.

00:22:29--> 00:22:36

And of course, you know, we we need to talk about credit cards and how to use them I know that people use them and Donita

00:22:38--> 00:22:44

we will talk about how to navigate with with them and how to use them in the right way and try to minimize evil right.

00:22:46--> 00:23:09

So we're trying in in this led to find solutions for Muslim Muslim brothers and sisters instead of saying this is haram and this is Khaled and black and white give black and black and white answers by the way, yeah, there are there are when we talk about these issues, I feel that there is like around three methodologies.

00:23:13--> 00:23:16

One, so a group of rules are very strict.

00:23:17--> 00:23:18


00:23:19--> 00:23:23

we sometimes rush into you know, including

00:23:25--> 00:24:11

or making conclusions about some transactions that they are forbidden or they are haram sometimes without understanding the essence of the transaction, or the essence of the product, especially when it comes to new products that are found in the new currencies or cryptocurrencies or digital assets or many products that are found in the market. So I don't like this approach. I don't like the approach of the other I wouldn't call them rude ml but sometimes students of knowledge are people who say you know, take it easy, everything should be halal, because we live in the 21st century and you know, there is no Halal there is no halal.

00:24:12--> 00:24:15

If you look for Halal income you will not be able to find it.

00:24:16--> 00:24:28

Nothing is pure. And to a certain degree, yes, we can say that nothing is pure at this time, and ah yes. But this doesn't give us a green light.

00:24:29--> 00:24:35

Green light to ignore the rule the basic rulings of Sharia.

00:24:36--> 00:24:59

To say that yeah, we are depositing our money in the bank. We're working in companies that are involved even if our job is halal. They have other haram activities. They are taking money from the bank and they are paying interest or collecting interest and working in these companies. Therefore nothing is pure. We

00:25:00--> 00:25:20

I agree with this statement, but this does not give us the green light to make everything halal and to ignore the Sharia of Allah subhanho wa taala. So what we should be the right methodology is to learn and try to find how to navigate around the system here

00:25:21--> 00:25:46

and make a handle a profit, and of course, our 100 income. And of course, you know, sometimes things will look difficult to life difficult because of our way of thinking sometimes you know, there are people who met and tell you, I'm not allowed we shouldn't be allowed to work in, in math in a place like superstore

00:25:47--> 00:26:36

or Safeway, or Walmart, even if I am doing something Hello, shelving, or working in the department of fruit and division, vegetables, or working in the bakery to be Khaled working the bakery, you're not you're not dealing with kunzea You're not selling alcohol. Even if this big company superstore or Safeway has some products that are haram and they are being sold, they're, you know, dealing with them directly. Then your job if you are involved in a Khaled activity, your job should be Halon. And you don't have to worry about the other activities because you are not a decision maker. You are not a decision maker. You are not the manager you own don't own the company. When you become the owner,

00:26:37--> 00:26:40

then you will be accountable in front of Allah subhanho wa taala.

00:26:42--> 00:26:59

That's why us Allah says Elam used to make business with the Jewish merchant in the city of Medina, even though they were heavily involved in river. But he used to do business with them. Why? Because his transactions with them were halal. So you should care about your own transaction.

00:27:00--> 00:27:18

Yesterday, I received a question from a brother. He said if I am selling a car to someone, and I know that he is receiving the payment that he will give it to me is a loan that he's taking from someone else and he will be paying interest on this loan.

00:27:19--> 00:27:59

Am I allowed to sell my car to him? And I said yes, it's harder for you to sell your car to him. So the road ama distinguish between two transactions here. The first transaction is between you and him selling the car to him. Now it's his responsibility now to provide the payment for this car, whether it is from his own Halla income from alone from it His problem is his problem the only one at one time Well, the one the only time you know that it's haram for you to do business with him. If you know that he stole the money.

00:28:01--> 00:28:09

The money should be given to the rightful owner. This is not right. All you buy something you know for sure that the seller

00:28:10--> 00:28:11

stole it.

00:28:12--> 00:28:44

It's a stolen item. Here in this case, it's haram for you to do business with them. So as I said, what I'm trying to say here, sometimes life becomes difficult, not because the Dean philosophy that Allah is difficult, or everything is haram in this society. This is a big statement here. Now because of the way we look at things, the way we think, or lack of knowledge here is a bigger problem, the way we look at things and look at different transactions.

00:28:46--> 00:29:01

So I mean with knowledge insha Allah these problems will be solved beginning later, but a lot of customary practices, some of some customary practices are accepted in Sharia. If they don't, they don't lead to anything that is forbidden.

00:29:03--> 00:29:13

If the oath is accepted in the Sharia, there is nothing wrong with it. Nothing against is in Syria. It should be honored and accepted if it is

00:29:15--> 00:29:25

made as a condition it as a condition in the contract of sale or any rental agreement or any contract that you make with other with other people.

00:29:29--> 00:29:35

Now, in this occasion, it's nice to talk to talk about

00:29:36--> 00:29:40

some Islamic legal Maxim's I'll cover it for here.

00:29:42--> 00:29:53

And acidophilic recording was she wrote in Javas will say hell. So the rule number they said the presumption of validity and permissibility applies to all contract, contracts and condition what does it mean?

00:29:55--> 00:29:58

We mean that as a basic principle

00:30:01--> 00:30:05

Any contract, any transaction should be halal.

00:30:06--> 00:30:09

Unless you know that it contains

00:30:11--> 00:30:25

something that is forbidden. For example, it includes rubber, wood, it includes a lot of high level of uncertainty, or it was forbidden by the Sharia of Allah subhanaw taala for another external factor,

00:30:27--> 00:30:28

but then the timing

00:30:29--> 00:30:30


00:30:31--> 00:30:39

some business transactions on Friday, some of them are Hara during the time of humor. It's not about the river. It's not about

00:30:40--> 00:31:26

the timing when the Imam is on the member delivering the hotbar It's haram for you, you know, to do business at that time, unless there are a couple of hot bugs and any different massages, then you're planning to go to a different message and the message you are planning to attend your Joomla and it is not start going to start the room at three o'clock. That's a different story. So we are allowed to do business at 12 or one o'clock because your zoom I will start at three o'clock. That's a different story. But let's talk about a case where there is one Masjid in the town, one masjid and the Imam is on the member. So it's not about Riba is not about the other. But this is an external

00:31:26--> 00:31:32

factor is found in Sharia, that it is haram for Muslims to do business at the time of Zuma.

00:31:33--> 00:31:45

So if there is nothing against it, in the deen of Allah subhanho wa Taala then it should be as a basic principle this contract this transaction should be held and us fulfill Asha and Eva.

00:31:46--> 00:31:48

Why the route Emma took this

00:31:49--> 00:32:12

legal or the came up with this legal Maxim based on some other proofs in the Quran, Allah subhanaw taala reminds his servant about his favorites that He created everything in this universe for them to enjoy. But when it comes to forbidden items, they are mentioned by name in the Quran and Zieve that meet

00:32:14--> 00:33:06

mohila Me he the very left anything that was dedicated to other than Allah subhana wa Tala, Hummer alcohol and of course there are some other items when it comes to food items mentioned in the sunnah of our Prophet Mohammed Salah produces so everything is halal, except what was explicitly classified as haram or forbidden in the Sharia of Allah subhanho wa Taala so this will make our life easy and that's why some wrote Mo is saying between trading bitcoin trading Bitcoin and Aetherium not all not all cryptocurrencies, they're saying they should be held this trading should be halal. But the US this one this maxim this filthy Maxim as one of their proofs, and we'll talk about it at the end

00:33:06--> 00:33:11

inshallah maybe in the in the fourth session at the end of the month we'll talk about this some modern transaction

00:33:12--> 00:33:30

and hook them on a che if I want to enter so every one of the legal Maxim's judgment is to be based on knowledge and understanding. If I don't understand the essence of this transaction or how this item works, and I'm asked about the ruling I cannot say It's haram

00:33:31--> 00:33:48

without knowing how it works, Today I received the question for example, someone is giving an amount of money to some group of people and receiving a profit after every 45 days Masha Allah receiving a good amount of profit.

00:33:50--> 00:34:19

Okay, what is the ruling? This is the question that I received. What is the ruling is it haram there is former in this in this transaction? what the answer was I need to know the nature of this activity, the native nature of this business what kind of business is this and also the way this profit is calculated? Mashallah, it's a good amount of profit given to you after every 45 days.

00:34:21--> 00:34:28

So, what is the nature of this business, what kind of business you are involved in what kind of investment

00:34:29--> 00:34:59

so you cannot make a ruling and to me this profit seems like too good to be true and it's a big amount right? But they cannot jump and say It's haram. Like there are some any Muslim scholars when they are asked about cryptocurrency and said It's haram, but they don't give any explanation. When you say It's haram you have to give an explanation you have to explain to people why It's haram. So and look more at a che if our own answer so would he need to understand the transaction

00:35:00--> 00:35:03

understand the product and to sell the investment before you

00:35:04--> 00:35:23

issue a ruling about it. And this is as I said, the job of Muslim scholars, and a profit recording in Mikaze, one man elearning alpha, we will move early. So in contracts, greater weight is given to substance, and meaning rather than words and forms. I'll give you an example. Very common example nowadays.

00:35:25--> 00:35:28

People who like to bike, buy new cars,

00:35:30--> 00:35:40

from dealers, they go to the dealer and he tell him I am a Muslim, I cannot deal deal with interest and cannot pay your interest.

00:35:41--> 00:36:04

Is it possible to do it in a halal way? Now dealers they know, they know that Muslims do not they're familiar with this concept. Now, with this problem, they know slim customers, or many of them do not deal with interest, we came up with a solution. What is the solution is dealers, many dealers tell Muslim customers, I will add the amount

00:36:05--> 00:36:11

of the interest to the whole amount. And if the cash price of this car would be 20,000.

00:36:12--> 00:36:23

And the interest amount will be 5000. I'll make it one price $25 I will remove the word interest from the contract is not there.

00:36:25--> 00:36:31

And you're gonna pay, make your payment a monthly payment and then everything will be fine everything will be handled.

00:36:32--> 00:36:36

Now here the word interest is removed from the contract.

00:36:37--> 00:36:43

Right. But does interest exist in this contract? Yes. Because there is still

00:36:45--> 00:36:59

a third party who is collecting interest who is the third party here is the financier, the bank, who is giving the loan to the Muslim custom, even if the contract is signed in the dealership,

00:37:00--> 00:37:13

these documents came from the bank or the financing company. And it will be they will be sent back to the bank. And you will be at the end paying let's say 25,000 25,000.

00:37:15--> 00:37:18

The dealer will take his money upfront from the bank.

00:37:20--> 00:37:42

The dealer cannot wait. I had a long meeting with one of the big dealers here. He owns nine locations were looking for solution for Muslim customers. And I told him about Morava grotto. murabaha obey an Azure credit sale with a payment plan that you increase the price for Muslim customers but you give them a halal product. So they cannot do it.

00:37:43--> 00:37:48

He said I cannot do it, it cannot wait for five years I need my money upfront

00:37:50--> 00:37:52

from where he gets his money he gets it from the bank

00:37:53--> 00:38:42

takes the money from the bank the 20,000 has to come to him sometimes less because they there is a bonus that he received from from the bank a bonus 2000 or something he received it from the bank for for bringing customers to them. But there is amount of interest that is given to the bank. So here as I said, what we did is we removed the word interest. The contract doesn't have interest this term is removed and it's one price and the Muslim customer could be happy Oh I got a halal deal is not halal. Sharia doesn't look at the words in the form of this contract, it looks at the essence the structure, who is involved in it, who is financing

00:38:43--> 00:38:49

what is the role of the dealer is he giving you the deal the loan

00:38:51--> 00:38:52

or someone else?

00:38:53--> 00:39:00

So here we have to be careful and this this this 15 You know 50 maximum is very important to you.

00:39:02--> 00:39:25

And Michelle computationally Good to see you hardship begets facility and Masha one of the beautiful, legal Maxim's it is a proof that our Sharia is reasonable. And it is full Fraga and mercy and that's why some remember they said when something becomes very common and it is widely used within a certain environment, a certain society or community

00:39:26--> 00:39:29

if there is a way to better use it without

00:39:30--> 00:39:43

without disobeying Allah subhanho wa Taala then Muslims should be allowed to use it because if they don't use it, they will face hardship or extreme hardship as an example for that car insurance.

00:39:44--> 00:39:59

Commercial insurance conventional insurance as a basic principle it should be haram forbidden by all Muslim scholars worldwide, all of them he said it is halal because why is based on her it's not riba Laura

00:40:00--> 00:40:19

which is uncertainty and Sherry I have some tolerance for her and never becomes permissible at times of need when when we are dealing with a pressing need without cause Muslims will have a miserable life. Imagine if we're not allowed to drive cars because insurance is how

00:40:21--> 00:40:30

our life would be different. Who are the relevant here they're looking at this principle for example, Masha cashlib, etc. Credit cards, many Rhoda Maddy said

00:40:31--> 00:40:53

it is permissible to use them with some conditions. We'll talk about them when we talk about credit cards or some source with some conditions. So they look at the use this beautiful legal Maxim and these legal Maxim's, as I said are built on other proofs from Sharia from Quran and Sunnah. The Quran and sunnah of our Prophet Muhammad sallallahu alayhi wa sallam

00:40:54--> 00:40:59

harassing the Dhamma man benefit profit or profit is linked to liability

00:41:00--> 00:41:04

liability for someone to make money and to earn a profit

00:41:05--> 00:41:53

in a transaction he has to be there has to have some risk to bear some risk. If there is no transfer of risk, when he doesn't buy as a basic principle, he is not allowed to make a profit from this transaction. That's why one of the conditions of you know selling something, after you buy it from another merchant is to it has to come into possession why? Because when it comes into your possession, there is a transfer of fear of risk even if it is for five minutes for 10 minutes. And here we can talk about this product, this principle when we talk about whatever and some other transactions. So profit in Islam is linked to effort and liability,

00:41:54--> 00:42:02

effort and liability and capital. So these three is linked to these three things will allow you to add value.

00:42:05--> 00:42:57

Now talking about the contract of sale, it is mubadala to man in the melon, Allah sebelah Torabi, Allah subhanaw taala v. So, a contract for the exchange of property with another property based upon mutual consent. Why because ALLAH SubhanA wa Taala talks about mutual consent is sorted on the set, if a business has to do has to be done with satisfaction, both both parties need to be satisfied with this business transaction. Now, this will lead us to talk about the contracts of adhesion shuru to record an event where you don't have the right to negotiate the terms. So, the Muslim scholars have talked about, you know, these contracts of adhesion, and he said, you know, it is against the

00:42:57--> 00:43:30

concept of mutual consent. But if there is a government, which is supervising and protecting customers and consumers, then these contracts should be allowed, because they are very beneficial for the society. And big companies cannot negotiate, you know, these deals and contracts with every customer. But then if you think about utility companies, you know, electricity or internet or from a big company, these companies they don't have,

00:43:31--> 00:44:19

they can they cannot negotiate every contract with every customer and give different terms to every customer to every single customer. You don't do it this way. But he said as long as there is a government, which is supervising this business, and the rights of customers are protected, then in sha Allah, these kinds of contract should be should be valid will allow you to add on here we might think about some other Muslim companies where they are called housing companies, they are also most of the time making the terms writing the terms and the conditions of the contract before they offer you and it's sticky to leave it basically concept Yanni you don't have the right to negotiate the

00:44:19--> 00:44:48

terms of the contracts and here I think the what is needed here is the job of Muslim scholars to keep an eye on this Muslim companies. Are they doing a good job? Are the treating the Muslim customers with justice or not? This is the obligation of Muslim Muslim scholars will love to Allah. But these are contracts of adhesion. Yeah, and you don't have a right to negotiate. I mean, please go to

00:44:49--> 00:44:51

buy something in a store.

00:44:53--> 00:44:59

Usually there is no contract to sign by buying furniture or buying a TV or camera yeah in this

00:45:00--> 00:45:41

cases, maybe you can ask you can negotiate the price, you look at the quality of the product, and you might you negotiate the conditions of your sale. That's a different story. But I'm talking about those big companies, which give a standard standard contract. So see, these contracts are called contracts of adhesion. So mutual consent is not there is not really sometimes you're not happy with the contract that you signed it because you don't have a choice. But this is the as a basic principle, we are supposed to do business with mutual consent, both parties have to be satisfied with the contract. It is an exchange between two parties.

00:45:42--> 00:46:24

And properties, of course, can be different types. And the importance of knowing different types is sometimes you know, the way the way we deliver property or possession takes place within a transaction is based on the nature of the property. So when you receive when you buy a house, you don't receive it in your hand. This is something that we need to talk about it we'll talk about money, food and other properties. So you don't receive it in your head. If you receive the key, then this is a valid form of possession. It's a real possession, because in Islam, we have what is called Real possession. And constructive possession you don't have you don't receive it in your head

00:46:24--> 00:46:30

perspective, but you have control over this property. So different types of properties.

00:46:32--> 00:46:40

Anything any business deal that is made through coercion or pressure is not valid, in the Sharia of Allah subhanho wa taala.

00:46:42--> 00:47:11

Now, there are three ways usually three ways of exchanging wealth, money for money, which is currency or money exchange, you can talk about forex, or crypto currency trading. And it's called the sale of surf in Sharia Al islamiya is the sale of surf. It has some conditions. The problem with many Muslim brothers when they hear about sometimes some conditions that are related to the sale of sort of,

00:47:12--> 00:47:14

there are some restrictions here in Sharia.

00:47:16--> 00:47:19

We think these restrictions are found in every contract of sale.

00:47:21--> 00:47:34

But then I'll give you an example. When we are exchanging money, it has to be on the spot. If I'm exchanging Canadian, with American, it has to be made on the spot the delivery has to be immediate.

00:47:36--> 00:47:53

Now even if the money is transferred to my account is still a form of possession. It's called constructive possession because I have access to my account, it is accepted. The Sherry had a hadith of rasool Allah so Allah Allah wa sallam use the term EMB it had to help

00:47:54--> 00:48:39

some of them they feel like oh, you know doing business in Islam is very difficult. Everything has to be head to head no, this is about riddle we items money, all the rebounding atoms that were used in an exchange in a barter economy. When you read the Hadith, a total return on a date for date and bodily for barley, and wheat. This is we're talking here about a barter economy, something that existed during the time of Fula Isola low annual selling. So we're not concerned with these kind of transactions. But we are we should be concerned with the way we exchange money. Because people are making money out of money, they're selling money and buying all the time, right? Whether you go to

00:48:39--> 00:48:42

an exchange, a foreign exchange,

00:48:43--> 00:49:27

a place or you buy money online, you do Forex, currency trading online, or any any form of you chaining Kryptos or so you need to know the rulings but the rulings of this type of exchange do not necessarily apply to a general sale they Mukluk when you buy with money, you buy a car, or you buy a house or you buy method food, it's a different type of exchange, a different sale, different contract. So he have to be careful when we talk about some rulings, we have to distinguish between different types of transactions.

00:49:28--> 00:49:59

An item of value would another for another item of value is called the barter transaction. And as I said, it you it used to be very common at the time of Rasulullah sallallahu alayhi wa sallam. Amazingly, there are people in North America who started doing this bartering, bartering business. I don't know how it works, where there is a community of people in North America, and they are changing items of value for without money. There is no money insight into trends.

00:50:00--> 00:50:07

actually selling commodities for commodities and the way they are they have their own websites and their own, you know, community,

00:50:09--> 00:50:24

different groups of people, and to try and get their doing business this way. So I don't have enough information about these kinds of activity nowadays. But it was, it was very common at the time of Rasulullah, sallAllahu, alayhi wasallam.

00:50:26--> 00:50:31

Now, now require now it's called barter,

00:50:32--> 00:50:33

barter transaction.

00:50:35--> 00:50:36

But I'm bitter.

00:50:39--> 00:50:49

So let's talk about some basic rules of the contract of sale here. The first rule that rule number they say the subject of sale must be existing at the time of sale.

00:50:51--> 00:51:01

And they give an example you're not allowed to buy an unborn animal, for example, this is what is found in the classical books.

00:51:02--> 00:51:36

Or to sell the fish in the sea. I mean, it's still in the sea. So it's like, it does not exist. Yeah, it exists in the sea, but it's not in your head. Right. So but there is, of course, some exceptions for these rules. The three rules there are some exceptions when it comes to sell and sale. And it's the snap. These two exceptions can be used by many brothers and sisters, if they want to do business online business and or open online. You know, businesses we can we can we can use these modes of

00:51:37--> 00:51:44

most of these contracts of sale. So the second the second

00:51:45--> 00:51:51

basic rule, they said the subject of sale must be in the ownership of the seller at the time of sale.

00:51:52--> 00:52:36

So do not sell letter B, malice or InDeck do not sell what is not with you. This is the hadith of Hakeem reserve. When he sought the advice of Rasool Allah as I sent him, he said a man may came to me might come to me and asked me to buy something for for him from the market. So I would sell it to him before I buy it. So if it is a specific item, if you are talking about a specific item, an item that belongs to has a shoe Burnie and you come and you tell him, you know, I'll sell you this iPhone, hoping that you'll come you go to haselbury, buy it for 1000 and sell it to the other brother for 1200. So you make 200. So this is not permissible. This is a specific item that belongs

00:52:36--> 00:52:45

to someone else, you're not sure you're not confident that you will be able to make a deal with the original owner. But if something is

00:52:46--> 00:53:30

manufactured is, is an agricultural agricultural product that is widely available, that's a different story. We'll talk about the two exceptions, or something that is house to be built or a car to be made. That's a different story. But if you're talking about specific item, you cannot sell it before you own it. He wants that specific item that is found in that shop, or that belongs to Mr. Diamond or rather Le he wants to buy it so you sell it to him before you own it. This is not halal, because you're not sure if you're gonna you're gonna you'll be able to sell it buy it from the other person or not. The subject of sale must be in the physical or constructive possession of the seller.

00:53:31--> 00:53:37

When he sells it. These are general rules, the exceptions is sell them sale and it's the snap.

00:53:38--> 00:53:47

What are the rules of Selim, do you should do it at the time of Rasulullah Selim the farmers used to sell dates for two years

00:53:49--> 00:54:38

or three years. So they receive the payment two years before they deliver the product. And they used to do it because they need money. It was haram for them to borrow money to borrow money with interest to borrow with interest, right? To borrow with river it was hard for them. So these farmers, they used to sell these agricultural products dates or wheat or barley, sell them for two years Yeah, and the delivery will happen after two years or three years. So as Allah says him came to Medina, when he found that this transaction is full of transaction was very common. So he said if you do it, then you have to do it, that the product has to be well described, the way it has to be

00:54:38--> 00:54:49

well known and agile, the time of delivery has to be agreed upon. So now this is how people do business nowadays, you make an order

00:54:51--> 00:54:59

from a factory in China, for example. If you do a contract with them, then you have to agree on the time of delivery.

00:55:00--> 00:55:14

The product has to be well described, you're well aware, you know, what you're familiar with it, you saw the pictures, you have the details, this is what you know, people who are selling online e commerce provide, you know,

00:55:15--> 00:55:59

provide a description for distribution. If you go to Amazon, for example, you read about the product, full description is there, the picture of the product is there, so you have enough knowledge about it. So this will, Sharia wants you to have enough knowledge about the product that you are buying. Or if you are selling the product, that you provide enough knowledge to the customer about the product that you're selling, or you allow to sell before you own it. In this case, you are allowed, as I said, this is an exception. And this is how people think that they should be able to do drop shipping. But you know, there are different platforms and different companies were giving

00:55:59--> 00:56:01

this mode of sale.

00:56:02--> 00:56:47

Many Rhoda Murray said the way it is done, the conventional way of doing drop shipping is not valid. But they always give alternatives. And they give solutions to Muslim investors. And they give them ideas how to build a business online while using these contracts of selling. So you don't have to own the product. You don't have to have a store, you don't have to have the inventory in your basement, you can open a store online, and you have the description of the products and the items well described. customers know what you're talking about. They have enough knowledge about the product, you can make an order, what are the conditions they have to pay upfront? What is the what

00:56:47--> 00:57:08

are the conditions of Selim, Selim is not valid, if the price is not paid upfront, and it's easy to do it, ask the asker to transfer the money, and then you buy it, and you deliver the product to them. So it's possible to do it is possible to do this kind of business through Selim, say

00:57:09--> 00:57:14

is this now is manufacturing contract or building

00:57:17--> 00:57:21

contract agreement, the house does not exist.

00:57:22--> 00:58:06

But you can you are allowed to make an agreement with the builder to build the house for you. You agree on the description of this house, how many bedrooms, how many washrooms how many floors, you have the design you have, you are you know the house very well, you have enough knowledge about the house, but it does not exist is not there. So the builder is Allah, you are Allah to make a contract agreement with him. And you buy this house and he will build it for you this is called is the SMA. And it's not like selling, you don't have to pay the price upfront. You can pay, you have a payment plan, and you pay him on a regular basis on a monthly basis or every three months, you make a

00:58:06--> 00:58:16

payment based on your agreement. So through this contract we can this is what actually people are how people are making business in modern times.

00:58:17--> 00:58:53

But anyway, if you are these three conditions, or three basic rules that they mentioned, they are about something specific, that exists, doesn't belong to you, you're not allowed to sell it before you own it, because you're not sure if you'll be able to secure it or buy it, you're not able to you're not sure if you will be able to make the delivery on time. So, there are many issues here. As I said, if you follow the rules of Salem and this is not you will be able in sha Allah to to do many business activities, especially online nowadays.

00:58:56--> 00:59:18

The other basic rules of of sale, the subject of sale must be a property value. Here when we talk about for example, some some digital assets, NF T's, for example, non fungible tokens, some of them don't have any value. So that is something that we might talk about it later on in sha Allah. But

00:59:19--> 00:59:37

you know, the owner Maddie said it has to be a property value it has a value it's useful, people can use it in in a in a way in any way I mean, they can benefit from it. The subject of say cannot be an item which is not used except for haram purpose.

00:59:38--> 00:59:42

So if it is hammer, a Muslim cannot benefit from coming.

00:59:44--> 00:59:46

If it is concealed

00:59:48--> 00:59:52

How can you benefit from kunzea Pork you can't.

00:59:53--> 00:59:59

It's used as a food but not for Muslims. Right is a meat that is consumed by some people

01:00:00--> 01:00:21

Oh by the Muslim cannot eat kunzea So this item cannot be a subject of sale. But how about a subject of sale that could be used in both ways could be used in a halal way could be used in hardware here So Muslims become confused. It is helpful for you to sell this kind of items

01:00:23--> 01:00:42

when you are not sure if the person will use it in a halal way or haram way, and you don't have the obligation to ask them here's a customer your customer coming to buy method a box of grapes you sell you are you're selling fruits

01:00:43--> 01:00:51

it's possible that he will take these grapes and make wine out of it right in old days they used to make wine of us grapes to make wine right company.

01:00:52--> 01:00:59

B not sure he's selling it as a fruit, then this is halal. If you are selling guns for example.

01:01:00--> 01:01:26

Okay, it's not there is no civil war for people or is it halal to sell guns? Here it is halal, weapons and guns, right? It is halal as a basic principle. But they said the rule of at the time of a civil war, you're not allowed to sell them. Why? Because most likely the people will be using these guns to kill each other. But if you are sure that the person is buying the gun to kill someone else that in this case, you're not allowed to

01:01:27--> 01:01:41

sell it right to this person. But as a basic principle, if you sell something that could be used in a halal way or in Haram, well, then it is permissible. Let's phone let's say for example,

01:01:42--> 01:01:50

we use them to, to talk to family members and friends and do business right. But it could be used in a haram way or not.

01:01:51--> 01:02:19

It's possible right? You know what I'm talking about. But is it haram in this case two cell phones is not because there are many people who use it in Halal way Muslims and non Muslims right they will be using just to watch the news or to use it as a phone right. Right. So as a basic principle, if something is used, could be used in both ways, then it is harder to to sell it.

01:02:21--> 01:02:26

The subject of sale was specifically known and identify to the buyer.

01:02:27--> 01:02:30

It has to be known and identified. Yeah, and you should know it.

01:02:31--> 01:02:34

I'll give you an example. One of the problems that we have

01:02:36--> 01:02:38

within the Islamic

01:02:39--> 01:02:41

housing market

01:02:43--> 01:02:50

most of the time, most of the time is housing companies are offering selling houses to the customers

01:02:51--> 01:02:55

either through murabaha or Musharaka.

01:02:59--> 01:03:09

And with Mushara car partnership, the combine two other sometimes two other contracts rental agreement.

01:03:10--> 01:03:40

And the third agreement should be a sale because through the sale you can buy the share until you own the house. So in the beginning the first agreement is Musharaka partnership. You come up with the income with you deposit a down payment of 20% for example, if the value of the house 100,000 Do you contribute their contribution their contribution is 400,080%. So the whole 80% You don't want the person to the house.

01:03:41--> 01:03:50

It is halal to do it this way if it is done properly in in a right way. But sometimes sometimes

01:03:51--> 01:03:57

these companies ask the ask you this the the customer to start making payment.

01:04:00--> 01:04:01

But the

01:04:03--> 01:04:11

the subject of sale is not known what are what are you buying? Are you buying their share 80%

01:04:13--> 01:04:21

If you buy this share from day one 80%. We should be out of the picture. They don't have the right to charge you rent.

01:04:23--> 01:04:24

You are not partners anymore.

01:04:26--> 01:04:27

It's a credit sale.

01:04:28--> 01:04:38

You already bought bought the 80%. Yes, you didn't pay it up front. It's a credit sale with a payment plan for 20 years. So 25 years.

01:04:39--> 01:04:47

How to correct How do you correct do we correct this Miranda? No, this transaction, the subject of sale has to be well defined.

01:04:49--> 01:04:59

And there are some companies I think we paid I think attention to this problem. And they started changing terms every five months every five years like conventional

01:05:00--> 01:05:47

banks do it and that's fine. But within these five years, the subject of sale has to be specified. What what are you selling to me? 20% Okay, that's fine 20% of your share, then I become from day one, the moment I buy this 20% They become the owner of 40 persons because initially I own 20 Now I'm buying from you 20 person and it is, it is each man it is agreed upon by Muslims call it that it is permissible to buy a share in a property in a property that is not divided in a house here that is owned by two parties is not divided. You cannot divide it this one house. The customer wants to use the house the whole house cannot divide it.

01:05:49--> 01:06:38

Very scholarly consensus was talking about each man scholarly consensus that it is permissible to buy a share in an N divided property, whether it is land, or a house, so it's okay I'm buying from you 20% Then that's halal. I know that I'm buying 20% I become the owner after I buy this 20% Owner 40 person. So you charge me rent only for 60% If you charge rent, for charging read there is a problem with it. Because they ask you to pay for everything. So companies, some other companies now paid attention again to this problem. There is no rental agreement, you remove the rental agreement, there is only partnership and sale. And then they ask you because they are not charging you rent,

01:06:38--> 01:07:29

then you pay for the utilities, property tax and you pay for the insurance, which is fair because you're not they're not charging you rent. They are doing they are combining between only partnership and sale but when it comes to the sale, I have to know what I am buying if I buy from day one, you asked me to make payment to pay you for your contribution 400,000 Then I'm buying the whole share which is 80%. And you should be out of the picture. You're not my partner anymore. You sold me the house with a credit sale and I will just pay you every month your money and that's it. But anyway, these problems are found in the what is called the Islamic housing market is there so, so anything

01:07:29--> 01:07:38

you buy, you have to know it it has to be specified. It has to be identified. Well known. The delivery of the salt come