Explanation of the author's statement: "And whoever sells a ribawi item on credit and takes in exchange for its price something that is not sold on credit."
Machine translationRead the Arabic original
The Shaykh : Then he said: "And whoever sells a ribawi item on credit and takes in exchange for its price something that is not sold on credit, it is not permissible". To sell a ribawi item on credit means to sell it for a deferred price. And to take in exchange for its price something that is not sold on credit means something that is not sold for the same item that was sold on credit. In that case, it is not valid. Is that clear?
The questioner : ... .
The Shaykh : All right, let me clarify it with an example, if Allah wills. He sold one hundred sa' of wheat. Is wheat a ribawi item or not? It is ribawi. He sold it for a deferred price of one month, saying, "I have sold you one hundred sa' of wheat for two hundred dirhams, due in one month." So, what is established in the buyer's debt? Two hundred dirhams. The seller, who has two hundred dirhams established in his favor, says to him, "I want you to give me one hundred sa' of rice in exchange for the two hundred dirhams." Is that permissible? It is not permissible, because wheat is not sold on credit for rice. If you wanted to sell one hundred sa' of wheat for one hundred sa' of rice without immediate exchange, it would not be permissible. So, when the one who sold wheat for deferred dirhams then takes in exchange for those deferred dirhams something that is not sold for wheat on credit, we say this is forbidden. Why? Because it is a stratagem to sell a ribawi item for something that is not sold for it on credit, by selling it for it on credit. Is that clear?
The questioner : Yes, clear.
The Shaykh : All right, and some people say it is not clear. Adam, is it clear to you?
The questioner : Clear.
The Shaykh : All right. Now, if I sell you one hundred sa' of wheat for one hundred sa' of rice, to be delivered to you after ten days, it is not permissible. So, one might say, "I will sell him one hundred sa' of wheat for two hundred riyals, and then after ten days I will buy rice from him for two hundred riyals." What is this? It is a stratagem. Instead of saying, "Wheat for rice, deliver it to me after ten days," he says, "Wheat for dirhams," and then returns to say, "Sell me rice." It is clear that this is a means to riba. So here we say it is forbidden to take in exchange for the price of a ribawi item sold on credit something that is not sold for it on credit, because that is a clear means to selling a ribawi item for a ribawi item that is not sold for it on credit, with deferral. May our Lord open our hearts. Is that clear, brothers?
The questioner : Clear.
The Shaykh : All right. This is a man who sold dates for two hundred dirhams, with a deferred price of one month. After ten days had passed, the seller said to the buyer, "I want to take in exchange for the two hundred dirhams twenty dinars," and the buyer agreed and he delivered them to him. Is that permissible or not? It is permissible, on the condition that it is at the current market price and that they do not agree on anything else between them. Why is it permissible in this case but not in the first one? Because selling dates for dirhams and dinars is permissible on credit, so there is no harm in it. All right, he sold dates for two hundred dirhams, deferred for one month, and after ten days had passed, the seller said to the buyer, "I want to take in exchange for these two hundred dirhams a camel, which is worth two hundred dirhams?"
The questioner : It is permissible.
The Shaykh : Is it permissible?
The questioner : Yes.
The Shaykh : Why? Because dates are sold for camels on credit, and what is prohibited is taking in exchange for its price something that is not sold for it on credit. That is the prohibited matter. Yes?
The questioner : ... .
The Shaykh : This leads to the option of choice. This is the option of bid'ing, which will be discussed, if Allah wills, in the section on options.
The questioner : ... .
The Shaykh : All right, let me clarify it with an example, if Allah wills. He sold one hundred sa' of wheat. Is wheat a ribawi item or not? It is ribawi. He sold it for a deferred price of one month, saying, "I have sold you one hundred sa' of wheat for two hundred dirhams, due in one month." So, what is established in the buyer's debt? Two hundred dirhams. The seller, who has two hundred dirhams established in his favor, says to him, "I want you to give me one hundred sa' of rice in exchange for the two hundred dirhams." Is that permissible? It is not permissible, because wheat is not sold on credit for rice. If you wanted to sell one hundred sa' of wheat for one hundred sa' of rice without immediate exchange, it would not be permissible. So, when the one who sold wheat for deferred dirhams then takes in exchange for those deferred dirhams something that is not sold for wheat on credit, we say this is forbidden. Why? Because it is a stratagem to sell a ribawi item for something that is not sold for it on credit, by selling it for it on credit. Is that clear?
The questioner : Yes, clear.
The Shaykh : All right, and some people say it is not clear. Adam, is it clear to you?
The questioner : Clear.
The Shaykh : All right. Now, if I sell you one hundred sa' of wheat for one hundred sa' of rice, to be delivered to you after ten days, it is not permissible. So, one might say, "I will sell him one hundred sa' of wheat for two hundred riyals, and then after ten days I will buy rice from him for two hundred riyals." What is this? It is a stratagem. Instead of saying, "Wheat for rice, deliver it to me after ten days," he says, "Wheat for dirhams," and then returns to say, "Sell me rice." It is clear that this is a means to riba. So here we say it is forbidden to take in exchange for the price of a ribawi item sold on credit something that is not sold for it on credit, because that is a clear means to selling a ribawi item for a ribawi item that is not sold for it on credit, with deferral. May our Lord open our hearts. Is that clear, brothers?
The questioner : Clear.
The Shaykh : All right. This is a man who sold dates for two hundred dirhams, with a deferred price of one month. After ten days had passed, the seller said to the buyer, "I want to take in exchange for the two hundred dirhams twenty dinars," and the buyer agreed and he delivered them to him. Is that permissible or not? It is permissible, on the condition that it is at the current market price and that they do not agree on anything else between them. Why is it permissible in this case but not in the first one? Because selling dates for dirhams and dinars is permissible on credit, so there is no harm in it. All right, he sold dates for two hundred dirhams, deferred for one month, and after ten days had passed, the seller said to the buyer, "I want to take in exchange for these two hundred dirhams a camel, which is worth two hundred dirhams?"
The questioner : It is permissible.
The Shaykh : Is it permissible?
The questioner : Yes.
The Shaykh : Why? Because dates are sold for camels on credit, and what is prohibited is taking in exchange for its price something that is not sold for it on credit. That is the prohibited matter. Yes?
The questioner : ... .
The Shaykh : This leads to the option of choice. This is the option of bid'ing, which will be discussed, if Allah wills, in the section on options.