Conditions for a Valid Sale — Contract Validity in Islamic Law
fiqh
Level: intermediate
special
fqh-030
وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَوٰاْ
— البقرة 275
Verse: "Allah has permitted trade and forbidden usury." (2:275)
"Permitted trade": General permissibility of commerce — encompassing every sale meeting its conditions.
Conditions for valid sale: Mutual consent; known subject and price; ability to deliver; lawfulness of the item; offer and acceptance.
Forbidden sales: Riba, gharar (uncertain transactions), fraud, selling what one doesn't own without guarantee, selling wine or carrion.
Lesson: Islamic economics is built on mutual consent and justice — not exploitation.
Source: Al-Qurtubi (3/345); Ibn Al-Arabi (1/247); Ibn Qudama (4/1)
Question: What is the key difference between permissible trade and forbidden riba?
Answer: Trade: exchange of two different goods/values by mutual consent. Riba: stipulated increase on a loan in exchange for delayed repayment — an increase without real corresponding value.