Chapter 14- Al-Qirad (Financing a Profit -sharing venture)

930.Suhaib narrated that the Messenger of Allah said,"There are three things which are blessed, selling with a postponed credit, (285) Muqaradah (286) and mixing wheat and barley for one's household and not for sale," Related by Ibn Majah with a weak chain of narrators.

285. Which will be paid for at a later specified time. It is blessed as it gives the buyer a chance to pay for his goods (which he already received), when his money is available.

286. Giving someone money with which to do business, on the basis that the provider takes a percentage of the profit.







931. Hakim bin Hizam narrated that he used to say that if he gives money to someone by way of Muqaradah; 'You should not trade with my money in living beings, do not transport it by sea, and do not come down with it into the bottom of a river bed. If you do any of these acts. you should guarantee to return me my money.' Related by Ad-Daraqutni. Malik said in al-Muwatta' on the authority of Al-Ala 'Abdur-Rahman bin Yaqub on the authority of his father on the authority of his grandfather that he traded with some property belonging to 'Uthman on the condition that the profit would be divided in halves between both of them. This is Hadith is Sahih and Mawquf.