Ruling of Auction Sale

Regarding Auction

“Is auction sale permissible? Please explain it to us!”

Answer:

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.

“Don’t you have anything left?” the Prophet -peace and prayer of Allah be upon him- asked him.
Then he took a horse saddle and a glass.

The Prophet -peace and prayer of Allah be upon him- offered the goods to his companions,

مَنْ يَشْتَرِي هَذَا؟ فَقَالَ رَجُلٌ: أَنَا آخُذُهُمَا بِدِرْهَمٍ، قَالَ: مَنْ يَزِيدُ عَلَى دِرْهَمٍ؟

”Who’d like to buy this?”

“I’d like to buy it for 1 dirham.” one of his companions replied.

“Who dare to buy it more than 1 dirham?”

They were silent, until he repeated his offering.

مَنْ يَزِيدُ عَلَى دِرْهَمٍ؟

“Who want to add more than 1 dirham?”

Until one of the companions raised his hand and said, “I’d like to buy it for 2 dirhams.”

The Prophet -peace and prayer of Allah be upon him replied, “Please take it.”

It was narrated by Imam Ahmad in his Musnad, no. 12134, Abu Daud in his Sunan, no. 1641, Turmudzi in his Jami’, no. 1218, but it is a weak hadith, as explained by al Albani and Syuaib al Arnauth, because there is a narrator named Abu Bakr al Hanafi in its chain of narration, and he is regarded as unknown by the scholars.

Next, Turmudzi explained that the scholars had practiced the content of this hadith, because the auction sale is among a transaction that was known by the companions and his students. Turmudzi said,

وَالعَمَلُ عَلَى هَذَا عِنْدَ بَعْضِ أَهْلِ العِلْمِ: لَمْ يَرَوْا بَأْسًا بِبَيْعِ مَنْ يَزِيدُ فِي الغَنَائِمِ وَالمَوَارِيثِ

As a practice of the content of the hadith, according to some scholars, that it is allowed practice auction sale on the spoils of war and inheritance. (See: Jami’ Turmudzi, 3/514).

Second, account of the scholars of Tabeen.

Imam Ath Thahawi brought an explanation from one of scholars of Tabeen, Atha Ibn Abi Rabah (died in 114 H), he said,

أَدْرَكْت النَّاسَ يَبِيعُونَ الْغَنَائِمَ ، فِيمَنْ يَزِيدُ

I met some people (the companions) who sold the spoils of war to people who wanted to raise its price. (Narrated by Bukhari with an elimination of one of its narrator, 3/69, and it is mentioned in “Syarh Ma’ani al-Atsar, no. 3935).

Ath Thahawi also mentioned a narration from Mujahid (scholar of tabeen, a pupil of Ibn Abbas, died in 104 H). Mujahid said,

لا بَأْسَ أَنْ يَسُومَ عَلَى سَوْمِ الرَّجُلِ إذَا كَانَ فِي صَحْنِ السُّوقِ ، يَسُومُ هَذَا وَهَذَا ، فَأَمَّا إذَا خَلا بِهِ رَجُلٌ ، فَلَا يَسُومُ عَلَيْهِ

It is alright for a person to bargain an item that has been bargained by other if the market is still opened (the auction process is not closed yet). And if the winner of the auction has brought the item with him, there should be no more bargaining.” (See: Syarh Ma’ani al-Atsar, no. 3936).

If the auction process is closed, no one is allowed to bargain

In Islam, we are forbidden to bargain the item that has been bargained by other. From Abu Huraira -may Allah be pleased with him-, the Messenger of Allah -peace and prayer of Allah be upon him- reminded us,

لَا يَخْطُبُ الرَّجُلُ عَلَى خِطْبَةِ أَخِيهِ، وَلَا يَسُومُ عَلَى سَوْمِ أَخِيهِ

“A man is not allowed to propose to a woman whom another man has proposed to, and one is not allowed to bargain item which has been bargained by another.” (Narrated by Muslim. no. 1408 and others).

But what about the auction sale? Don’t they offer their bargain one after another with a higher price?

From the explanation of Mujahid above, we can conclude that the prohibition of not allowed to bargain item which has been bargained by another person applies after the auction been closed.

But if it is not closed yet, then offering another bargain is not included in the prohibition of bargaining item that has been bargained by other person, since all involved parties understand that the bargaining process is still open to all.

This is the explanation of An Nawawi in “Raudhatut Thalibin”,

فأمّا ما يُطاف به فيمن يزيد وطلبه طالب فلغيره الدخول عليه والزيادة فيه . وإنما يحرم إذا حصل التراضي صريحا

An item that has been offered to the buyer who dare to give higher price, other people is allowed to join the process and to give additional price, even though there’s already people who bargained it. The forbidden thing is when there is already an agreement with mutual willingness between the seller and the buyer. ” (See: Raudhatut Thalibin, 3/415).

And Allah knows best.

Answered by ustadz Ammi Nur Baits (Taken from www.Konsultasisyariah.com
Article of www.syaria.com