Bargaining in Business

 

Bargaining in Business


It was narrated from Jabir ibn ‘Abdullah (may Allah be pleased with him) that he was riding on a camel of his that had become exhausted to the point that he wanted to let it go. He said: The Prophet (blessings and peace of Allah be upon him) caught up with me and offered supplication for me, and he hit it and the camel started moving (energetically) as I had never seen it move before. He said: “Sell it to me for one Uqiyah.” I said: No. He (blessings and peace of Allah be upon him) said: “Sell it to me.” So I sold it to him for one Uqiyah and stipulated that I be allowed to ride it home. When I arrived I brought the camel to him, and he gave me its price, then I left. He sent someone after me and said: “Did you think that I bargained with you in order to take away your camel? Take your camel and its price; they are both yours.” (Narrated by Al-Bukhari, 1991 and Muslim, 715) 

This shows that even the Prophet (PBUH) participated in bargaining and accepted it as normal practice in trade.

In Islam, trade and commerce are encouraged, and fairness and mutual consent are emphasized. Bargaining is generally permissible, as long as it is conducted in an ethical and just manner, without deception, coercion, or causing undue harm.

Here's a breakdown of what the Quran and Hadith say about bargaining and asking for price reductions, along with insights from authentic Islamic sources:

From the Quran:

While the Quran doesn't explicitly detail the mechanics of bargaining, it lays down foundational principles for just and ethical transactions. Key themes include:

  Mutual Consent: The Quran emphasizes that trade should be based on mutual consent between the buyer and seller. Allah says: "...except it be a trade amongst you, by mutual consent..." (Quran 4:29). This implies that both parties have the right to negotiate and agree upon a price they are comfortable with.

  Fairness and Justice: The Quran repeatedly stresses the importance of fairness, giving full measure and weight, and not defrauding others in their dealings.

    "And, O my people, give full measure and weight justly, and defraud not men of their things, and act not corruptly in the land making mischief." (Quran 11:85)

    "Woe to the defrauders, who, when they take the measure (of their dues) from men take it fully, but when they measure out to others or weigh out for them, they are deficient." (Quran 83:1-3)

  Avoiding Unjust Gain: The Quran prohibits consuming one's property in vanity or through unlawful means, which includes exploitative pricing or dishonest practices.

From the Hadith:

The Hadith, which are the sayings and actions of the Prophet Muhammad (peace be upon him), provide more specific guidance on the etiquette of trade and bargaining:

·         Permissibility of Bargaining: There are Hadith that indicate the permissibility of bargaining. For instance, it is narrated that the Prophet Muhammad (peace be upon him) himself bargained when buying items. This shows that negotiating a price is a recognized practice in Islamic tradition.

  A Hadith in Mishkat-ul-Masabih mentions that the Prophet (peace be upon him) came and bargained in relation to the price of a lower garment, and they sold it to him. (Narrated in Mishkat-ul-Masabih)

·         Kindness and Easiness in Transactions: The Prophet (peace be upon him) encouraged Muslims to be kind and easy going in their buying and selling.

    "May Allah have mercy on a man who is easy going when he buys, when he sells and when he asks for payment." (Sahih Bukhari)

·         Prohibition of Undercutting After Agreement: Islam prohibits a person from offering a lower price for an item that another person has already agreed to purchase, if the initial deal is close to being finalized. This is to prevent causing harm and resentment among Muslims.

   * "One amongst you should not enter into a transaction when another is bargaining." (Sahih Muslim) This Hadith indicates that once a price has been agreed upon or is close to being agreed upon, it is not permissible for another person to interfere and offer a different price.

·         Avoidance of Deception and Harm: The Hadith strongly condemn cheating, deception, and causing harm to others in business dealings. Bargaining should not involve misleading the seller or taking unfair advantage of their situation.

Authentic Scholarly Sources:

Islamic scholars throughout history have interpreted the Quran and Hadith to provide rulings on commercial matters, including bargaining.

·         Most scholars agree that bargaining is permissible as long as it adheres to Islamic ethical guidelines.

·         It is the right of both the buyer and the seller to negotiate the price.

·         Selling at a price lower than the market value is permissible and can even be considered a charitable act if done with good intention, unless it is intended to harm other merchants.

·         Selling at a price significantly higher than the market value, especially if the buyer is unaware, can be considered a form of deception and is not permissible.

·         The principle of "no harm, no reciprocating harm" (La darara wa la dirar) is applied to commercial interactions, meaning that bargaining should not lead to undue harm for either party.

It says in Subul as-Salaam: This indicates that there is nothing wrong with asking a man to sell you something that he has, or with bargaining. End quote.

 It was narrated that Suwayd ibn Qays said: Makhramah al-‘Abdi and I brought some garments from Hajar to Makkah. The Messenger of Allah (blessings and peace of Allah be upon him) came to us on foot and bargained with us for some trousers, and we sold them to him 

Narrated by at-Tirmidhi (1305) – he said: it is hasan saheeh. Also narrated by Abu Dawood (3336), an-Nasaa’i (4592) and Ibn Maajah (2220). 

Bargaining refers to haggling between the seller and the buyer when deciding the price, as it says in an-Nihaayah (2/425) 

This bargaining, in a moderate and reasonable manner, is a sign of maturity, sound mind and knowledge of the market price. This is something praiseworthy because such a person is less likely to be given an unfair deal or be deceived or cheated when buying and selling. 

Hence the fuqaha’ said: you may know that the son of a trader has reached maturity once he knows how to buy and sell and bargain. 

See: al-Mawsoo‘ah al-Fiqhiyyah (22/215)

 

In summary:

Islam permits bargaining and asking for price reductions in trade, viewing it as a natural part of commercial transactions based on mutual consent. However, this permission is conditional upon adhering to strong ethical principles, including fairness, honesty, kindness, and avoiding deception or causing harm to others. Bargaining should be a respectful negotiation process, not an opportunity for exploitation. The price list in your quotation is a starting point for this negotiation, and a potential buyer is within their rights to discuss pricing based on the provided information.

https://islamqa.info/en/answers/202876/is-it-proven-that-the-prophet-blessings-and-peace-of-allah-be-upon-him-used-to-bargain-when-buying-and-selling-until-he-began-to-sweat


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