#748: Ruling on Biding in Auctions

748 QUESTION:

“Salamun aleikum. Please is auction (a transaction whereby a product is open to people for sale and the highest bidder gets to own the product) permissible in Islam, Both organizing and participating In it. Thanks”

ANSWER:

Alhamdulillāh.

There is nothing in the Sharī’ah to imply that bidding in auctions and organizing it is not permissible. And for this reason, majority of the Ulamā permitted it.

They have supported their position using the Hadith that was recorded by both Imām Al-Bukhārī and Muslim from ‘Atā bn Abī Ribāh from Jābir bn ‘Abdillah that in the era of the Rasūl -salallāhu alayhi wasallam – a man had decided to free a slave of his after his death but was later faced with need for money. The Rasūl -salallāhu alayhi wasallam – then took the Slave and declared: ‘Who will buy him from me?’ Nu’aym bn ‘Abdillah then bought him and he – salallāhu Alayhi Wasallam – gave the money to the man.

The Tābi’ī Imām ‘Atā bn Abī Ribāh – rahimahullāh – said, as was mentioned in Sahīh Al-Bukhārī:

“I grew to discerning age to meet that the people did not see anything wrong in selling their share of the booty to bidding.”

The Ulamā said: the point of reference in the Hadith of Jābir above is that the Rasūl -salallāhu alayhi wasallam – declared who will purchase because he needed the highest bidder that he may be able to pay off the man’s debts.

Likewise, of the evidences is the Hadith of Anas bn Mālik – radiyallāhu ‘anhu – that a man among the Ansār came to the Rasūl -salallāhu alayhi wasallam – seeking. Then the Rasūl -salallāhu alayhi wasallam – asked him:

“What have you got in your home?”

He said:

“Spreadsheets which we wear and spread, and a container from which we drink.”

He said:

“Bring them to me”

Then he brought them and the Rasūl -salallāhu alayhi wasallam – took them and announced:

“Who will buy these?”

Then a man said: ‘I will buy them for a Dirham’

Then the Rasūl -salallāhu alayhi wasallam – said:

“Who will add a Dirham?”

He said this twice or thrice.

Then a man said: ‘I will take them for two Dirhams’

Then the Rasūl -salallāhu alayhi wasallam – took the two dirhams and gave them to the Ansār man who came.

This Hadīth is recorded by Imām At-Tirmidhī who said after narrating it:

“And the practice of the People has been in accordance with this (Hadīth) by the nod of some of the Ulamā for they did not see anything wrong in selling booty shares and inherited properties to the highest bidder.”

What has preceded is enough proof for the permissibility of the auction and bidding in it. However there are some things to look out for that fall into Harām in what some people do today.

Of them is _An-Najash_ which is to bid an item for a much higher price not with Intention of purchasing it but with the intention of hurting others that might be interested and preventing them from it’s purchase. This is Harām by consensus . This is due to the Hadith of Abdullah bn Umar – radiyallāhu ‘anhumā – that was recorded by both Imām Al-Bukhārī and Muslim that the Rasūl -salallāhu alayhi wasallam – forbade it.

Of them also is cheating on your brother whom the owner of the items has already decided to sell the item to after the bidding process has ended by offering a counter bid. This is because once the bidding process is over, there should be no counter bidding thereafter.

And Allāh knows best.

Bārakallāhu Fīkum
Jazākumullāhu Khayran

📚 IslamNode

https://t.me/INQAArchive