Is buying and selling halal?

Buying and selling is a normal part of life. Islam does not look at it with suspicion. It sees it as good, halal work, with a few clear rules to keep it fair.

• Allah says: Allah has made trade halal, and made riba haram¹.
• He says: do not eat up each other's money in wrong ways. Only by trade that both sides agree to².
• Nabi ﷺ said: a sale only counts when both sides agree³.

So the starting point is easy: any deal is halal unless there is a clear reason it is not. You do not need proof to sell a phone, rent a flat or buy groceries. Someone needs proof to say a deal is haram.

All the rules below protect one thing: nobody gets cheated or wronged. Each side knows what they give and what they get, and agrees freely.

What does every sale need?

Scholars use many words to list the parts of a sale. In plain words, a sale needs three things:

How do you agree?

• One side offers and the other accepts: "I sell it to you for 50." "I accept."
• You do not need special words. Most scholars say actions count too. You put the item on the counter, pay, and take it. Clicking Buy and paying online also counts as saying yes.
• Children buying small everyday things, like a snack, is normal. Many scholars accept it. For bigger things, a parent or guardian buys for them.

Who sets the price?

The seller does. Islam sets no limit on profit. When prices went up in Madinah, people asked Nabi ﷺ to fix prices. He said: Allah is the One who sets prices. He did not want to wrong anyone in their money⁴. So you may charge what people are willing to pay. Just do not lie, cheat, or take advantage of someone who is desperate.

What if you cannot really know what you get?

Nabi ﷺ forbade sales with gharar⁵. Gharar means too much uncertainty. One side does not really know what they are getting, or if they will get it at all. A deal like that is close to gambling, and it often ends in a fight.

Deals Nabi ﷺ forbade

• A calf not yet born from a calf not yet born: paying now for the baby that a camel's unborn baby will one day have⁶.
• Buying by touching or throwing: the deal is done the moment you touch a cloth, or the seller throws it to you. You get no chance to look at it⁷.
• Buying with a thrown stone: whatever the stone lands on is sold⁸.
• Fruit that is not ripe yet: selling fruit on the tree before you can see it will turn out good⁹.

What it looks like today

• Mystery boxes sold for a price, where what is inside may be worth far less, or nothing.
• Selling something you cannot hand over, like a lost item or goods stuck in a dispute.
• A price or delivery date that is left open: "Pay me something later." "I will deliver some time."

Small uncertainty is fine

You never know every detail of a deal. Scholars agree that small, normal uncertainty is forgiven. Uncertainty only spoils a deal when it is:

• Big, not small.
• About the main thing you are buying, not a small side part.
• Avoidable. If people cannot trade without it, it is forgiven.

So all of these are fine:

• Buying a house without seeing inside the walls or under the floor.
• Paying one price at a buffet or a gym, even though people eat or train different amounts.

Scholars differ on whether insurance has too much uncertainty. See Honest dealing, gambling and work, and the chapter Insurance and takaful.

Can you sell what you do not have yet?

Hakim ibn Hizam asked Nabi ﷺ: a man asks me to sell him something I do not have. Should I sell it to him, then buy it in the market? Nabi ﷺ said: do not sell what is not with you¹⁰.

So do not sell a specific thing you do not own yet as if it were yours, hoping to buy it later. You might not find it, or the price might change, and someone gets wronged.

Goods you bought but have not received

Nabi ﷺ said: whoever buys food should not sell it until he has received it¹¹. Ibn Abbas, who reported a similar hadith, said: I think everything is like that¹².

One day Ibn Umar bought olive oil in the market. Right away a man offered him a good profit for it. Ibn Umar was about to sell. Then Zayd ibn Thabit took his hand from behind and said: do not sell it where you bought it. First take it to your place, because Nabi ﷺ forbade that¹³.

The schools differ on which goods this rule covers:

• Shafi'is: all goods, as Ibn Abbas said.
• Hanafis: all goods you can move. Land and buildings may be sold on before you take them over.
• Malikis: only food.
• Hanbalis: mainly food, and goods sold by measure, weight or count.

When have you "received" something?

Receiving (qabd) means what people normally count as taking it over. It does not always mean holding it in your hand:

• A house or car: you have the keys, or it is in your name and handed over to you.
• Goods kept for you in a warehouse, where you now carry the risk if they are lost or damaged: many scholars today count that as received.

Two allowed ways to sell before you have the goods

• Salam (paying in advance). In Madinah, people paid now for dates to be delivered a year or two later. Nabi ﷺ allowed it and said: pay for a known amount, a known weight, and a known time¹⁴. The buyer pays the full price now. The goods are clearly described. It is not one specific item that may not exist.
• Istisna (made to order). You order something to be made, like furniture, a tailored suit, or a house built for you. Nabi ﷺ had a silver ring made for himself¹⁵. Hanafis treat this as its own kind of deal, and you can pay in stages. The other schools treat it like salam.

Can you change your mind and cancel?

Nabi ﷺ said: the buyer and the seller may keep or cancel the deal as long as they have not parted. If they tell the truth and make everything clear, their deal is blessed. If they lie and hide things, the blessing is wiped out¹⁶.

When Ibn Umar bought something he liked, he would walk away from the seller quickly so the deal became final¹⁷.

The schools differ on what this means:

• Shafi'is and Hanbalis: it is a real right. Until you part from each other (leave the place, or end the call or chat), either side may cancel, even after saying "I accept".
• Hanafis and Malikis: the deal is final as soon as both sides agree. They read "parting" as finishing the talk: once both have said yes, it is done.

Other ways to undo a deal

• A trial time you both agree on. A man who was often cheated in trade told Nabi ﷺ about it. Nabi ﷺ told him: when you buy, say no cheating¹⁸. In another report he added: and you have the choice for three nights. If you like it, keep it. If not, return it¹⁹. So buyer and seller may agree on a trial time.
• A hidden fault. If you find a fault the seller did not tell you about, you may return the item. A buyer was tricked about how much milk an animal gave. Nabi ﷺ let him choose to keep it or return it²⁰.
• Kindly agreeing to cancel. Even when the deal is final, the other side may ask to undo it. Nabi ﷺ said: whoever agrees to cancel a deal with a Muslim, Allah will forgive his mistakes on the Day of Resurrection²¹.

One more rule of good manners: do not talk someone out of a deal they just made so that they buy from you instead²².

Is a deposit allowed?

You often pay a deposit when you buy a car, book a hall or reserve furniture. All scholars allow some kinds. Scholars differ on one kind.

• Hanbalis: urbun is allowed. They point to a report that Umar's governor bought a house in Makkah this way. Many fiqh councils today agree, as long as the waiting time is fixed.
• Hanafis, Malikis and Shafi'is: it is not allowed. The seller keeps money without giving anything for it, and there is uncertainty. A hadith forbids it, but its chain of narrators is weak, so they rely mainly on the general rules.

Real scholars hold both views. Follow a scholar you trust.

Can a shop charge more if you pay later?

Buying now and paying later is halal. Nabi ﷺ himself bought food from a Jewish man on credit, and left his armor with him as a guarantee²³.

Can the pay-later price be higher than the cash price?

Most scholars, including the four schools, say yes. A shop may sell a phone for 600 cash, or 720 paid over 12 months. This is a sale, and the seller may set the price. It is not a loan of money.

A few scholars, past and present, disliked it or forbade it, because the extra looks like a charge for time. Most scholars reply: in a sale, time can be part of the price. What is haram is lending money and taking back more.

Two rules for a halal pay-later price

• Fix one price before you part. Nabi ﷺ forbade two sales in one²⁴. Scholars explain it like this: "10 cash or 20 on credit", and you part without choosing. Choose one, and it is fine.
• Nothing extra for paying late. If a payment is late and the price goes up, that extra is riba. Some Islamic contracts have a late fee that is given to charity, not kept as profit. See What riba is.

Why write a debt down?

The longest ayah in the Quran is about writing down debts. Allah says: when you take a debt for a fixed time, write it down²⁵.

In plain words, that ayah teaches:

• Write the amount and the date it must be paid back.
• The person who owes the money should say what to write. He should be honest and leave nothing out.
• Have witnesses.
• Do not think a debt is too small to write, small or big. Writing is fairer, works better as proof, and stops doubts later.
• A trade paid on the spot does not need to be written.

When there is nobody to write, like on a journey, take something as a guarantee²⁶. Nabi ﷺ left his armor as a guarantee for food he bought on credit²⁷.

Most scholars say writing debts down is a very good thing to do, but you are not sinful if you do not. The same ayah says: if you trust each other, let the trusted one keep his trust²⁸.

What this looks like today

• Lending to family or friends? A short message with the amount and the date counts as writing. It protects the friendship.
• Running a business? Use written contracts, invoices and receipts.
• Also write down what you owe, and tell your family. Then your debts get paid if you die. See How to get out of debt as a Muslim.

Do you have to keep the terms you agreed?

Allah says: O you who believe, keep your contracts²⁹. He also says: keep your promises. You will be asked about your promises³⁰.

• Nabi ﷺ said one sign of a hypocrite is: when he promises, he breaks it³¹.
• He said: Muslims must keep the terms they agree to, except a term that makes the halal haram, or the haram halal³².
• A term that goes against Allah's law does not count, even if there are a hundred of them³³.

So buyer and seller may add fair terms: free delivery, a delivery date, a service plan, time to return it. Once you both agree, you must keep them. Nabi ﷺ himself agreed to a term when he bought a camel³⁴.

What about online shopping, returns and warranties?

Online shopping follows the same rules. A clear listing tells you exactly what you are buying, so most online shopping is simply halal.

Can you buy what you have not seen?

• Hanafis, Malikis and Hanbalis: buying from a clear description counts as a proper sale. Hanafis also let the buyer return it when he first sees it.
• Shafi'is: the main view of the school is that you had to see the item. Many scholars today say clear photos, sizes and details tell you what it is, so online buying is fine.
• If what arrives is not what was described, you may send it back.

Paying now, getting it later

Paying now for goods that arrive in a few days is fine. You know the item, the price and the delivery time. Pre-orders for things not made yet are like salam or made-to-order, as long as the item is clearly described.

Returns

• A shop's return policy is one of the terms of the sale. You may use it, and the shop must keep it.
• Do not abuse it. Wearing a dress to a wedding and then returning it as "unused" is lying and taking what is not yours. So is returning something you broke yourself.
• If you are the seller, being easy about returns is a kind sunnah³⁶.

Warranties

• A warranty that comes with the product is part of the sale. It is halal, and you may claim it.
• An extended warranty sold separately, where you pay now for repairs you may or may not need: scholars differ. Some see it as like insurance, with too much uncertainty, and avoid it. Others allow it as paying for a service. Follow a scholar you trust.

Is dropshipping halal?

In dropshipping, you list a product in your online shop. When a customer pays, you order it from a supplier. The supplier sends it straight to the customer. You never hold the goods.

The worry is the hadith: do not sell what is not with you³⁷. Scholars today give different answers:

• Many scholars: the usual way, selling a product as yours before you own it, is not allowed. But there are halal ways to run the same business (below).
• Other scholars: it is allowed if the product is clearly described (not one specific item), the customer pays in full, and the delivery time is known. Then it is like salam, paying in advance³⁸.

Ways most scholars accept

• Be an agent. Sell for the supplier and take a fee or commission. Nabi ﷺ sent Urwa to buy a sheep for him. Urwa did well, and Nabi ﷺ made dua for his trade³⁹.
• Buy first. Buy the stock so it is yours and the risk is yours, even if the supplier stores and ships it for you.
• Affiliate links for halal products, where you earn a commission on each sale, are an agent's fee. Most scholars allow them.

Whichever way you choose, be honest about delivery times and quality. Long delays, and goods that look nothing like the photos, are where dropshipping most often turns into cheating.

What do people wrongly think is haram?

• Bargaining. Asking for a lower price, and saying no, is normal. Jabir said no to Nabi ﷺ before he agreed⁴⁰.
• A big profit. Islam sets no limit on profit⁴¹. What is haram is lying, cheating, and taking advantage of someone who is desperate.
• A higher price for paying in parts, set by the seller and fixed at the start: most scholars allow it.
• Buying on credit from a non-Muslim. Nabi ﷺ did it⁴².
• Paying in advance for something to be made or delivered later, with clear terms⁴³.
• A deal not made in Arabic, or without special words. Any clear way of agreeing counts.

Common questions

I shook hands on buying a used car, then changed my mind before I left. Can I cancel?

Shafi'is and Hanbalis say yes, until you part⁴⁴. Hanafis and Malikis say the deal was final once you both agreed. Either way, you may ask the seller to cancel. It is a good deed for him to agree⁴⁵.

A customer wants a product I do not have. Can I take the money and order it?

Do not sell a specific item you do not own yet⁴⁶. You have three halal options. Act as the customer's agent for a fee. Or buy it first, then sell it. Or take full payment for a clearly described item with a clear delivery date, like salam⁴⁷.

The furniture shop wants a deposit it will not give back if I cancel. Is that allowed?

Scholars differ. Hanbalis and many councils today allow it if the waiting time is fixed. The other three schools do not. If you can, ask for a deposit you can get back, or a down payment that counts toward the price.

The store offers a laptop for 1,000 cash or 1,200 over a year. Is the second price riba?

If the store itself sells you the laptop at a fixed 1,200, most scholars say it is a halal sale on credit. Make sure nothing is added if you pay late. Also check it is not really a separate interest loan from a finance company.

I lent my brother money. Do I really need to write it down?

Allah tells us to write debts down, small or big⁴⁸. Most scholars say it is a very good thing to do, but not a must. A short message with the amount and date is enough, and it protects your relationship.

Can I return clothes I wore once if I put the tags back on?

Only if the shop's policy really allows it. Returning something used as if it were new is lying and taking what is not yours.

Is buying a mystery box online allowed?

If you pay a price and may get something worth much less, or nothing useful, that is the too-much-uncertainty Nabi ﷺ forbade⁴⁹. If you know what kind of items you can get, and each one is worth the price, the uncertainty is small.