“Is auction sale permissible? Please explain it to us!”
In the name of Allah. Peace and prayer of Allah be upon His messenger.
Auction sale has been known since the time of the companions. It is often termed with muzayadah transaction which means each parties giving addition to each other, because usually, when a seller reveals the price of auctioned goods, he’ll say, “Man yazid?” (Who want to add the price?)
Here are several indications that’ll show to us how the auction sale has been known since the time of the companions.
First: Hadith from Anas Ibn Malik – may Allah be pleased with him-
One day, there was an Anshar man who came to the Prophet -peace and prayer of Allah be upon him- to complain about his lacking of money.