Auctioning
Innovations
Asked on 20th September 2020
Question
Salam Alaikum ... Following up on the Auctioning question I posted wanted to know the Shariah Conditions for Auctioning ... Barakah Allahu Feekum
Answer
Wa'alaykumsalaam Wa Rahmatullah
Auctions are one of the types of sale that are permitted according to Islamic sharee’ah. This is also the consensus of the Muslims in their marketplaces.
Islam permits selling by auctions and does not forbid it, according to the most correct and well-known opinion of the scholars. This is based on the following evidence:
Jaabir said: A man had decided that a slave of his would be manumitted after his death, but later on he was in need of money, so the Prophet (peace and blessings of Allaah be upon him) took the slave and said, “Who will buy this slave from me?” Nu’aym ibn ‘Abd-Allaah bought him, and he (the Prophet (peace and blessings of Allaah be upon him) handed the slave over to him.
(Narrated by al-Bukhaari, 2034; Muslim, 997). Al-Bukhaari included this hadeeth in a chapter titled “Baab bay’ al-Muzaayadah (Chapter: selling by auction).”
Ibn Hajar said: Ibn Battaal replied that the words of the Prophet (peace and blessings of Allaah be upon him) in this hadeeth, “Who will buy this slave from me?” indicate that he was offering him to the highest bidder so that the needs of the bankrupt man for whom he was selling him could be met.
(Fath al-Baari, 4/354).
2. ‘Ataa’ said: I met some people who saw nothing wrong with selling booty to the highest bidder. (Narrated by al-Bukhaari in Kitaab al-Buyoo’ (the book of sales), Baab bay’ al-Muzaayadah (Chapter: selling by auction)).
Auctions are one of the types of sale that are permitted according to Islamic sharee’ah. This is also the consensus of the Muslims in their marketplaces.
Islam permits selling by auctions and does not forbid it, according to the most correct and well-known opinion of the scholars. This is based on the following evidence:
Jaabir said: A man had decided that a slave of his would be manumitted after his death, but later on he was in need of money, so the Prophet (peace and blessings of Allaah be upon him) took the slave and said, “Who will buy this slave from me?” Nu’aym ibn ‘Abd-Allaah bought him, and he (the Prophet (peace and blessings of Allaah be upon him) handed the slave over to him.
(Narrated by al-Bukhaari, 2034; Muslim, 997). Al-Bukhaari included this hadeeth in a chapter titled “Baab bay’ al-Muzaayadah (Chapter: selling by auction).”
Ibn Hajar said: Ibn Battaal replied that the words of the Prophet (peace and blessings of Allaah be upon him) in this hadeeth, “Who will buy this slave from me?” indicate that he was offering him to the highest bidder so that the needs of the bankrupt man for whom he was selling him could be met.
(Fath al-Baari, 4/354).
2. ‘Ataa’ said: I met some people who saw nothing wrong with selling booty to the highest bidder. (Narrated by al-Bukhaari in Kitaab al-Buyoo’ (the book of sales), Baab bay’ al-Muzaayadah (Chapter: selling by auction)).