Barter

Sulaiman b. Abi Muslim informed us saying: I asked Abu al-Minhal about barter which is carried out by immediate exchange (by both the parties). He said: ‘I and my partner bartered a thing on the basis of immediate delivery and another on deferred delivery basis.” Then Bara‘ b. Azib called upon us. We asked him (about this). He said: “I and my partner Zaid b. Arqam did the same and we asked the Holy Prophet (Sall Allah-o-alaihe wa sallam) about this.” He (the Holy Prophet, Sall Allah-o-alaihe wa sallam) said: “Whatever is (bartered) on immediate delivery basis is lawful and whatever is (bartered) on the deferred delivery basis is unlawful.”

Source: Economic Teachings of Prophet Muhammad (peace be upon him): A Select Anthology of Hadith Literature on Economics, Muhammad Akram Khan. Republished with permission.