Qur’anic Code for Trade

Qur’anic Code for Trade

Khalid Durrani

Islam is a complete code of life that provides guidance to the humankind in every walk of life. Although trade and commerce is vital for the survival and progress of human society, it can only be carried out according to a code of ethics, to ensure justice and fair play. It is also essential to abide by the principles of good management, and indeed no human activity is complete without the element of benevolence and charity.

Lastly, there has to be a strong legal machinery to monitor observance of the prescribed code of conduct and Impose sanctions on those who violate it. The principles of trade mentioned in the holy Qur’an, encompass all the essential aspects of human conduct.

‘Woe to those that deal in fraud. Those who, when they have to receive by measure from men, exact full measure, but when they have to give by measure or weight to men, give less than due.” (83: 1-3). The word 'fraud' here, does not apply only to the practice of resorting to short measure or short weight but in fact it is the spirit of injustice that has been condemned.

In domestic and social matters it refers to an individual or group that may ask for honour or respect or services which they are not willing to give to others in similar circumstances. With what face can a man ask for mercy or love from Allah when he is unwilling to give it to his fellow beings? The spirit of the Ayaat is that we must give in full what is due from us, whether we expect to receive full consideration from the other side or not. Ayat 35 of Surah Al-Asra reiterates that giving just measure and weight is not only right in itself, but is ultimately, to the best spiritual and material advantage of the person who gives it. “Give full measure when you measure and weigh with a balance that is straight: that is the most fitting and the most advantageous in the final determination.

The holy Quran further enjoins men not to indulge in mischief by withholding things from people unjustly. Surah Al Shuara, Ayaat 181- to 183 state, “give just measure and cause no loss (to others by fraud). And weigh with scales true and upright. And withhold not things justly due to men, nor do evil in the land, working mischief.”

Allah Almighty has guided men to be honest, just and fair in all their dealings This includes not only weighing things that one is selling, but justice and honesty in conduct. in fact the scope of this Ayat also encompasses justice with one‘s own self and obedience of divine laws. The importance of 'balance' it trade and other worldly affairs has been further reiterated in Ayaat 7-9 of Surah Rahman, ‘And the firmament has He raised high, and He has set up the balance (of justice) In order that you may not transgress (due balance). So establish weight with justice and fall not short in the balance.”

It is unfortunate that many of us today, do not realize the hazards of accumulating wealth-through unjust and unfair means. Amassing wealth by unfair means is in fact a clear and willful disobedience of our Creator. “Give measure and weight with full justice, no burden do We place_ on any soul, but that which it can bear.” (6: 152).

‘Now has come to you a clear (sign) from your Lord! Give just measure and weight, nor withhold from the people the things that are their due, and do no mischief on the earth after it has been set in order: that will be best for you, if you have faith.” (7: 85).

Almighty Allah has urged men to earn by means of free and fair trade. We have also been warned against the hazards of greed and jealousy because Allah has promised to reward each individual, according to the effort he puts in.

“O you people who believe! Do not devour each other's property by deceit (or unlawful)”. (4: 29). “Do not desire (in greed) of His Grace which, Allah gives more to some than the others Men’s portion is according to what they earn and women’s portion is according to what they earn. And keep asking Him of His bounty. (4: 32)

Human mind is not like a computer where data may be stored permanently. Man is likely to forget things. Similarly, oral communication is likely to be misheard and misunderstood. Miscommunication is often the cause of disputes and misunderstandings between human beings. it destroys the otherwise affectionate and cordial relationship between dear friends and relatives. This is precisely the reason why Islam has ordained men to reduce their business contracts to writing. “You who believe! When you deal with each other, in transactions involving future obligations in a fixed period of time, reduce them to writing. Let a scribe write down faithfully as between the parties: let not the scribe, refuse to write as Allah has taught him, so let him write. Let him, who incurs the liability dictate, but let him fear his Lord Allah.

“There should he no (word or item) left out or reduced. If the party liable, is mentally deficient, or weak, or unable himself to dictate, let his guardian dictate faithfully. And get two witnesses out of your own men. And if there are not two men, then a man and two women, such as you choose for witnesses, so that if one of them errs, the other can remind her. The witnesses should not refuse when they are called on (for evidence). Disdain not to reduce to, writing (your contract) for a future period, whether it be small or big, also fix (and enter) term agreed, There is justice in this for you, in the sight of Allah, more suitable as evidence and more convenient to prevent doubts among yourselves.” (2: 282).

The first part of Ayat 282 deals with transactions involving future payment or future consideration. In order to understand the above part of the Ayat move realistically, it may be prudent to note the following points:

Ø  The words, “Thee is justice in this for you, in the sight of Allah, more suitable as evidence and more convenient to prevent doubts among Yourselves”, indicate that a written document is recommended in case of future transactions, but it is not obligatory in law.

Ø  it is desirable that the men or women chosen as witness should be from the circle to which the parties belong, as they would best be able to understand the transaction, and will be more easily available, if their evidence is required in future.

The second part of Ayat 282, deals with transactions in which payment and delivery are made on the spot. Such transactions require no contract or evidence in writing, but apparently oral witnesses to such transactions are recommended.

“But if it be a transaction which you carry out on the spot among yourselves, there is no blame on you if you reduce it not to writing. But take witnesses whenever you make a commercial contract, and let neither scribe nor witness suffer harm, if you do (such harm) it would be wickedness in you. So fear Allah; for it is Allah that teaches you. And Allah is well acquainted with all things.” (2: 282).

Commercial morality in the above pan of the Ayat has been taught in the most practical manner, both in regard to the bargains to be made, the evidence to be provided, the doubts to be avoided and the duties and rights of scribes and witnesses.

Ayat 283 of Surah Al Baqarah explains the principles of pledge as a means of commercial transactions “If you are on a journey, and cannot find a scribe, a pledge with possession (may serve the purpose). And if one of you deposits a thing on trust with another, let the trustee (faithfully) discharge his trust, and let him fear Allah, his Rabb. Conceal not evidence: for whoever conceals it, his heart is tainted with sin. And Allah Knows all that you do.”

A pledge or security stands on its own independent footing, though it is a very convenient form of closing the bargain where the parties cannot trust each other and cannot get a written Agreement with proper witnesses. The law of deposit implies great trust in the depositary on the part of the depositor. The depositary becomes a trustee whose duty is to guard the interests of the person on whose behalf he holds the trust and to render back the property and accounts when required, according to the terms of the trust. It is at times possible to gain a material advantage by destroying or concealing an Inconvenient piece of evidence. We have been warned not to yield to such temptation. Concealment of evidence has a serious effect on our own moral and spiritual life. Our heart is the seat of all our affections and false dealings taint all our affections.

Allah Almighty has forbidden excessive profit faking and exploitation of the needy. We have been strictly restrained from multiplying our wealth through unjust, exploitative and excessive profit taking. “O you people who believe! Do not eat (earnings) doubled and multiplied through Riba, but fear Allah that you may really prosper.” (3: 130).

According to the explanation of the above Ayat by Abdullah Yusuf Ali, it is highly incumbent on us to refrain from oppressing our fellow beings in need. Usury or Riba is the opposite extreme of charity, unselfishness, striving and giving ourselves in the service of Allah and of our fellow beings. Heal prosperity consists not in greed but in giving ourselves and our wealth in the cause of Allah, and in the service of Allah’s creatures. Al-mighty Allah has warned us that those who are only engrossed in the vanities of this world, and wish to accumulate wealth in this temporary and transitory life, are disregarding the direction and advice of Allah, Such people may become materialistically rich in this world, but they would be paupers in the eternal life hereafter.

“Whoever intends to harvest his crop in the hereafter, We increase the yield of his crop. And If one intends to harvest his crop in this world, We give It to him in this (life), then he has no share of it in the hereafter” (Surah Al Shura, Ayat 20). Ayaat 15 and 16 of Surah Hud (11), explain the above concept in greater depth. “One who desires the life of this world and its glitters, We will satisfy him in full (according to) his deeds, in this life, there will be no deduction from it. For all such people there is nothing in the hereafter, except fire. What they had built (in this world) will be rendered futile, and all their deeds will be ineffective.”

It is by no means enough to give guidance to people, frame rules and regulations, but leave people free to violate the law if they choose to do so. Justice and fair play must be enforced with iron hand in order to ensure a lust, equitable and peaceful co-existence in the society (Surah Al Hadeed, Ayat 25 says, “When We sent our apostles with clear signs and sent down with them the Book and the Balance (of right and wrong), that men may stand forth in justice.

And We sent down Iron in which is (material for) mighty war, as well as many benefits tor mankind that Allah may test, who it is that will help, unseen, Him and His apostles: For Allah is full of strength, exalted in Might (And able to enforce His will).

In the above Ayat, three things are mentioned as gifts of Allah. In concrete terms they are ‘The Book’, The Balance, and ‘Iron’ which stand as emblems of the three things which hold the society together. These are:

Ø  The Revelation: which commands good and forbids evil

Ø  Justice‘ which gives to each person his due

Ø  The strong arm of law which imposes sanctions on evil doers and handles them with an iron hand. Iron in the above Ayat stands as the symbol of strength, power, and enforcement of law.

The writer is a retired commander of Pakistan Navy;

(Courtesy: “DAWN”)