Rules on barter

[Anon]

Dear MV,

Islam calls for lawful profitable enterprise and paying the correct price, not higher or lower, for any financial transaction. My question is, in emergencies when one is not able to pay for things due to financial difficulties, can they instead trade their material possessions, voluntarily, as a form of payment? Example, instead of paying whatever the listed price for a product, they instead plead with the seller to accept an item they possess instead as a way of help and overcoming the problem of lack of money.

Assuming both seller and buyer consent, is such trade lawful in Islam? Would it be better or worse than, the buyer accepting the product for free as a way of charity by the seller?

Hope you can clarify this issue, jazakallahu khayran.

[Ruhi_Rose]

As Salam Alaykuim.   If mutually decided and accepted by both the seller and buyer, the buyer can certainly pay in kind (in the absence of cash) with whatever material possession or possessions they can give away as the price of the item purchased.  There is nothing in the Noble Quran prohibiting such a transaction.  In fact such a transaction would be acceptable any time if mutually agreed between the two parties.  There's absolutely nothing wrong with that.  Buyers are generally shrewed.  If the material item you want to exchange is of inferior quality compared to the one you desire to purchase, the buyer will know it and won't accept the transaction.  Therefore the only rule you need to observe is to ensure whatever material item you intend to trade is of similar monetary value as the one you intend to buy.  However, this too is flexible depending on mutual decisions.  If the seller is a kind hearted person who empathizes with the buyer's financially straitened situation, they can accept an item of lesser value from the seller or can even remit it as charity by giving it for free.  This can be deduced from Verse 2:280 of Surah Al Baqrah in regard to borrowing money, quote: "And if the debtor is in straitened circumstances, then (let there be) postponement to (the time of) ease; and that you remit the debt as almsgiving would be better for you if you did but know."   Thus, Allah will appreciate if the lender understands the borrower's difficult circumstances and waives the debt as charity.  Based on exactly the same logic, if a seller agrees to give away an item for free to help a buyer in financial distress, Allah would InshAllah appreciate that too.

And Allah know best.

I hope this helps.

[Anon]

Wa alaikum salaam wrt Sr. Ruhi, and thank you for your insightful reply. Yes, it certainly have helped making things clear on this topic. However, if I may ask a small follow up question...if a buyer, afflicted with financial desperation, consent to an inequitable trade where he would be worse off afterwards, would this be sinful on his part? Because he wronged himself by not seeking charity elsewhere or just wait for Allah's help to arrive?

Apologies if I'm overthinking it and conjuring scenarios needlessly. Thank you again for your time and patience, and my best wishes to you and rest of members of MV. Jakallahu khayran.

[Heba E. Husseyn]

No problem.  Please free to ask whatever queries you may have.

...if a buyer, afflicted with financial desperation, consent to an inequitable trade where he would be worse off afterwards, would this be sinful on his part? Because he wronged himself by not seeking charity elsewhere or just wait for Allah's help to arrive?
.......

Generally according to the principles of the Noble Quran, if people are coerced into making decisions under pressing circumstances, Allah always forgives.    However, I would appreciate if you clarify a bit more, preferably with an example, on what exactly you are referring to when you mention "inequitable trade where he would be worse off afterwards."  I wasn't able to follow this too clearly.