Major Principles in Islam: Seeking the halal Not harming the contracting party
As we continue this journey through the main principles of Islam relating to halal earnings, we are still focusing on seeking the lawful, on its etiquettes, its conditions, and its finer details. Alhamdulillah, this topic sits at the heart of a believer’s life, and it touches every interaction, every transaction, and every choice that brings income into our hands.
We are following Imam al-Ghazali’s sequence from Ihyaʾ ʿUlum al-Din, because his organisation of this chapter on seeking the halal is truly remarkable. His structure is balanced, comprehensive, and guided by the prophetic method. So I follow his order while paraphrasing, elaborating, and simplifying where needed. In one sense, I am following him; in another sense, I am not following him, because I am expressing the material in my own words. But the spirit and the sequence are his.
We spoke previously about the importance of avoiding harm, whether public or private. Harm is to be removed in every area of life, but especially in transactions. And Imam al-Ghazali sets out an overarching principle based on the hadith of the Prophet ﷺ:
لَا يُؤْمِنُ أَحَدُكُمْ حَتَّىٰ يُحِبَّ لِأَخِيهِ مَا يُحِبُّ لِنَفْسِهِ
“None of you truly believes until he loves for his brother what he loves for himself.” (Bukhari and Muslim)
He is essentially saying: put yourself in the other person’s shoes. If what you are doing to him were done to you, would you like it? Would you accept it? If the answer is yes, then proceed. If the answer is no, then refrain. This is the measure of fairness. Imam al-Ghazali’s focus is justice, being a person of principles, of honesty, of fairness. And this becomes the foundation for what follows.
Exaggeration
He then says that a seller must recognise four matters. The first is that he must avoid exaggeration in praising his product. We touched on this before. When someone claims, “It does this, it does that,” and none of it is true, or only a tiny fraction of it is true, this becomes deception. It is cheating, and it is haram. Exaggeration misleads the buyer into believing qualities that simply are not there.
Genuine praise
The second is that genuine praise is permitted. One may describe the real qualities of the product truthfully. If it is handmade, say so. If it is made by poor artisans and the proceeds support them, say so. As long as you are not lying and not inflating the truth, this is permissible. You speak honestly, you present the item as it is, and the buyer is free to accept it or leave it. What is forbidden is pressuring people through exaggeration or false claims.
Swearing oaths
The third matter Imam al-Ghazali highlights is the prohibition of swearing oaths to promote a product. And this is something many of us have witnessed, especially in Muslim markets or Muslim countries. You hear a seller repeatedly saying, wallahi this, wallahi that. And usually, the moment someone begins swearing oaths, suspicion enters the heart, because truthful people do not need oaths to sell their goods. A false oath may increase sales temporarily, but it destroys blessing, wipes out reward, and requires repentance.
Al-yamin al-ghamus, the perjurious oath, is one of the gravest sins in Islam. It is called “ghamus” because it plunges a person into sin in this world and into the Hellfire in the next. The Prophet ﷺ explicitly counted it among the major sins in the ḥadith of ʿAbdullah ibn ʿAmr (may Allah be pleased with him), who narrated that the Messenger of Allah ﷺ said: “The major sins are: associating partners with Allah, disobeying one’s parents, killing a soul, and the perjurious oath (al-yamin al-ghamus).” (Bukhari). Ibn Masʿud (may Allah be pleased with him) further clarified its meaning when he said that it is: “That a person swears an oath while lying, in order to unjustly take the wealth of a Muslim.” (Bukhari).
Such an oath is considered a kabirah, (major sin) and the majority of scholars state that it carries no kaffarah, because it is an oath of deliberate sin; instead, the individual must repent sincerely and return any rights or wealth wrongfully taken. Examples include falsely swearing that a debt has been repaid, or lying under oath in court to obtain property or support a false claim.
Sincere advice
The fourth matter is nasihah, sincere advice. Part of our covenant with the Prophet ﷺ is that we give sincere advice to every Muslim. If a buyer asks you, “Would you buy this if you were in my position? Do you keep this product in your own home?” then you are obligated to tell the truth. If you mislead him at this point, you violate that covenant.
Imam al-Ghazali cites two stories. I mentioned one previously: the story of Jarir ibn ʿAbdillah. He purchased a camel, or possibly a horse, for around 300 or 400. When he examined it properly, he realised it was worth more. So he returned to the seller and offered 400. Then he said, “No, take 600.” Then finally he paid 800. Not because he was foolish, but because he had made a covenant with the Messenger of Allah ﷺ: to give sincere advice to every Muslim. And he knew the animal was worth 800.
Some might think, “This is too much. Who behaves like this?” But this is what it means to eat halal, to earn halal, and to give halal. A person who acts with this level of integrity will never be deprived by Allah. And some of the righteous…
Honesty, disclosure, and fulfilling the covenant of advice
Imam al-Ghazali also mentions another story here, describing a man who would openly show every defect in his product. He would make full disclosure about any flaw in the goods he was selling. Someone said to him, “If you do this, no one will buy from you; you will make no profit.” He replied, “Then let no one buy from me through a hidden defect which I know about. I do not want to cheat anyone.” And this, truly, is the correct approach.
The companions understood that giving sincere advice is not simply an act of virtue. It is part of the covenant they made with the Messenger of Allah ﷺ. This was a condition of their pledge: to be truthful, to conceal no defect, to mislead no one. And this is something we desperately need to revive today, because we often hide behind fear: “If I tell him the truth, he will not buy it from me; I will lose the sale.” But do not rely on yourself. Rely on Allah. Be honest.
Because later, when he discovers what you concealed, he will say, “You cheated me. You knew and you hid it. You were not truthful. You were not dignified. You dealt with lies and deceit.” And no amount of money can purchase back your dignity once it has been lost.
So Imam al-Ghazali emphasises again: sincere advice (nasihah) was a condition of the pledge to Rasulullah ﷺ. Many of us forget this.
Understand the concept of rizq
Then he makes it easier by giving two principles which, if kept in mind, help a person avoid deceit, avoid exaggeration, and remain honest. The first is to understand that deceit does not increase your provision. Your rizq is written. You will receive what has been allotted to you. The only choice you have is how you receive it: in halal or in haram. If you resort to lying, exaggeration, false oaths, and deception, you may obtain your allotted amount, but you obtain it in haram. And if you act truthfully, you obtain the same amount in halal.
If your rizq today is fifty pounds, you will receive fifty pounds, either in halal or in haram. Your choice determines its moral status, not its quantity.
The second principle is that the profit of the hereafter is greater than the profit of this world. If you cheat, you may gain a temporary worldly advantage, but the gain of the Akhirah slips from your hands. And instead of reward, you receive punishment. What have you gained then? So you should avoid deceit in every form, whether in selling, creating, manufacturing, or fulfilling a contract.
If someone commissions you to produce something with specific agreed terms, you cannot secretly reduce the quality or the specifications, thinking, “He will not know; the defect is hidden inside.” Allah knows. You agreed to fulfil the contract; you must fulfil it. Anything else is deception and haram.
Honesty also requires avoiding cheating in weights, measures, lengths, and specifications. Even if the customer will never know, Allah is watching. He asked you for three metres; you delivered two and a half. He asked for three kilograms; you supplied 2.5. This is cheating, and it destroys the blessing (barakah) in your wealth and even in your health.
Allah warns clearly against this practice in Surat al-Muṭaffifin:
﴿وَيْلٌ لِلْمُطَفِّفِينَ﴾
“Woe to those who give less than due.”
It is always better to give a little extra than to give less, especially when you are selling. If you are unsure whether the weight is slightly short, add more just to be certain. Many honest sellers do this: they weigh a kilo, then top it up, saying, “Just to be sure.” This is goodness, and it earns blessing.
Do not exploit vulnerable people
The Prophet ﷺ also forbade exploiting vulnerable people. He prohibited intercepting incoming sellers, those Bedouins who would enter Madinah from the desert, unaware of the market prices. He forbade meeting them on the outskirts, inflating or deflating prices, and taking advantage of their ignorance. They would trust the first person they met, not knowing the real value of their goods. To exploit them is to violate the covenant of sincere advice.
Imagine if you buy something from him for ten pounds while knowing the market price is fifteen or twenty. He then goes into the marketplace, discovers the truth, and later sees you praying in the masjid. What will enter his heart? And conversely, imagine you buy it from him for twenty, and when he checks the market it is indeed around eighteen or twenty. Then he sees you in the masjid and says, “Jazakallahu khayran; you did not cheat me. You were honest.” The difference between the two scenarios is immense, in this world and in the next. The reward is immense too. You fulfilled your pledge to the Prophet ﷺ by giving good advice and refusing to exploit any vulnerable person.
We know these principles, but it is important to repolish them and revive them in our dealings. Allah is the Provider. It is not your cunning, your tricks, or your clever manipulation that secure your finances. Blessing comes when you are honest. People deal with you because they trust you. They know you will not betray them. And Allah places barakah in the wealth of the trustworthy.
Excellence (ihsan) in dealings: capital and profit
Imam al-Ghazali then moves to another beautiful chapter: excellence in dealings. Allah has commanded us to be just, and He has also commanded us to practise excellence. As Allah says:
﴿إِنَّ اللَّهَ يَأْمُرُ بِالْعَدْلِ وَالإِحْسَانِ﴾
“Indeed, Allah commands justice and excellence.” (Surat al-Nahl 16:90)
So how does one apply justice and excellence in financial transactions?
Ali (may Allah be pleased with him) explains this using the language of business. He says: justice is like maintaining one’s capital, while excellence is like attaining profit. Since we are speaking of trade, the analogy fits perfectly. In business, you need capital, and you work with that capital to generate profit. Here, justice is your essential capital, and excellence is your profit. This is what makes a business excel in the dunya and excel in the akhirah.
Imam al-Ghazali then says that a person will not reach the level of ihsan until he completes six qualities. He lists six, and the first two are as follows.
Moderation in profit margins
The first is moderation in profit, avoiding exploitation beyond what is customary. You may recall from previous sessions that in Islam there is no fixed legal limit on profit margins. It is not haram to double your money or even triple it. Islam does not impose a numerical ceiling on profit.
However, there is a major difference between legitimate profit and greed.
If a person manipulates the market, hoarding goods, creating artificial scarcity, inflating prices, especially in matters relating to necessities such as food, drink, electricity, gas, and essential services, then this becomes haram. But generally, the Shariʿah sets no fixed percentage.
Despite this legal allowance, ihsan requires moderation. Consider an area with three small shops. One has modest profit margins: people queue to buy from him. Another charges much higher: people purchase from him reluctantly, and not as often. Now imagine there is only one shop in the entire area, and he raises prices far beyond the norm, exploiting people’s needs. This is against ihsan. It is impermissible to benefit from their vulnerability.
So moderation matters. It differs from place to place and case to case, but the principle is clear: if the customary price is £1.50 and someone sells it for £2.50, this is excessive. It is not the extra £1 that is the issue; it is the profit margin and the exploitation behind it. The person selling at £1.50 is earning profit; the one charging £2.50 is causing people discomfort when dealing with him. You may gain money, but you lose people’s hearts. This is not ihsan.
Accepting some loss to support the poor
The second quality is the willingness to accept a small loss to help the poor. Here we are not speaking of selling, but buying. You meet someone weak or poor who is selling an item. He says, “Two pounds,” although you know its market value is less. Out of mercy, you accept it. You do not squeeze him, haggle with him, or belittle him for needing the money.
Sadly, what we often see is the opposite. People will never negotiate in a large corporate store, but when a poor seller sits in the street with small goods, they negotiate aggressively. It should be the opposite. You negotiate with powerful corporations, not with vulnerable individuals who are barely sustaining themselves.
Unless the poor seller is clearly deceiving you, ihsan is to accept a slight loss to support him. When your intention is to help him, this is a form of charity and earns reward.
Kindness and leniency in collecting payments
Imam al-Ghazali’s third principle is kindness in collecting payments. The Prophet ﷺ said:
“رَحِمَ اللَّهُ عَبْدًا سَمْحًا إِذَا بَاعَ، سَمْحًا إِذَا اشْتَرَى، سَمْحًا إِذَا اقْتَضَى، سَمْحًا إِذَا قَضَى”
“May Allah have mercy on a servant who is gentle when he sells, gentle when he buys, gentle when he asks for payment, and gentle when he repays.” (Ibn Majah)
So this leniency becomes part of the spirit in which we conduct contracts and business. If someone owes you £1,500.50 and has no 50p, or no £50, depending on scale, then show courtesy. Although you have the legal right to insist on the full amount, it is an act of ihsan to say, “It’s fine.”
Sometimes you know the buyer cannot afford the full price, and you are able to reduce it for him. Offer a discount. If your company permits you to apply 10% or 15% reductions, and you see that a person genuinely deserves it, then apply it. If it is your own business and your own money, extend generosity where appropriate. This is part of ihsan.
Or if the person cannot pay in full and you have done your due diligence, you may allow instalments, halves, thirds, or spaced-out payments. All of this falls under the canopy of kindness in financial dealings.
Behind all these examples is the recognition of genuine need. You are not permitting people to trample on you or exploit you; that is not what ihsan means. But in real cases where the person is sincere, struggling, and deserving, your facilitation and leniency embody excellence. It will not harm you. Allah will increase your profit and bless your trade because of your good intention, good character, and good dealings.
Excellence in repaying debts
The fourth principle, which Imam al-Ghazali attributes to ʿAli, is excellence in repaying debts. A man may have been in dire need, requiring money to cover necessities. He approaches a friend who generously lends him £5,000 with an agreed repayment time, six months, or a year.
Six months pass, and the borrower has the means yet does not repay. A year passes, he still does not repay. When the lender calls, he ignores him. When he sees him, he avoids him. This behaviour is haram. This is not how one responds to someone who supported him in difficulty.
The Prophet ﷺ prayed for the one who is gentle when borrowing and when repaying, saying:
“سَمْحًا إِذَا قَضَى”
“Gentle when he repays.” (Ibn Majah)
So a Muslim should repay debts promptly, graciously, without burdening the giver of the favour. This includes returning not only the principal but, if one wishes to show gratitude, a small gift, as the Prophet ﷺ sometimes did. The gift is not a condition of the loan but an expression of appreciation for kindness.
Accepting the seller’s regret (iqalah)
The fifth principle is accepting the return of a sale when the seller sincerely regrets it, what is called iqalah. Someone sells you a car, a book, a house, or any item. After the sale, he is overcome with regret. He cannot sleep. He feels he made a mistake and wishes he had not sold it. He comes to you, seeking reversal.
From a purely legal standpoint, the item is now yours. You are not obligated to return it. But from the perspective of ihsan, if you see his genuine remorse, then return it. Allah will replace it for you.
There are narrations indicating that whoever performs iqalah for a believer out of compassion, Allah will assist him on the Day of Judgement. Many stories illustrate this spirit. One scholar, extremely poor, eventually sold his entire library, his lifelong treasure, in order to survive. He later composed a poem expressing deep anguish and regret. The buyer, upon hearing the poem, was struck by the man’s pain. Out of ihsan, he returned the entire library for free, gave him additional money, and said, “Do not regret selling your library.” This is true excellence.
Selling to the poor on credit without intending to pressure them
The sixth principle is selling to the poor on credit while intending not to pressure them. Some individuals will never accept charity outright; their dignity prevents it. If you know someone is genuinely struggling financially, you may reduce the price, offer instalments, or tell him, “Pay what you can now, and when Allah facilitates the rest, bring it. And if you cannot, you are forgiven.”
Some merchants throughout history adopted this as a habit, not for show, but for Allah. The Prophet ﷺ told us of a merchant who instructed his employees: “If someone is unable to repay his debt, then cancel it for him.” When he died, Allah asked him, “Why did you do this?” He replied, “I wished that You would cancel my sins and forgive me.” Allah said, “Go, you are forgiven.”
The Prophet ﷺ said:
“There was a merchant who used to lend to people. Whenever he saw someone in hardship, he would say to his servants: ‘Forgive him (his debt), so that Allah may forgive us.’ So Allah forgave him.” (Bukhari)
When you show ihsan to others, your good deeds are recorded and never lost. Allah multiplies them, tenfold, a thousandfold, a hundred thousandfold.
Trade as the true test of character
Imam al-Ghazali concludes this chapter with a deep statement: trade is the true test of men, and through it one’s religion and piety are revealed. True piety is not seen while sitting in the mosque. True piety is exposed when dealing with money.
In business transactions:
Are you honest?
Do you cheat?
Do you exploit vulnerabilities?
Do you treat people kindly, while maintaining strength and shrewdness?
Kindness does not mean being a doormat. It means being principled, fair, and dignified, without hardness, manipulation, or deception.
We ask Allah to make us among those who practice excellence, who are truthful and trustworthy, who embody the teachings of the Prophet ﷺ in all our dealings. Ameen.
Based on the talk delivered by Shaykh Haytham Tamim to the Convert Club on 9th December 2025.
Q&A
Q: What is the principle behind returning an item to a seller who later regrets the sale?
A: The principle is ihsan. If you later discover that someone sold out of hardship and is in real distress, excellence in character encourages you—where possible—to undo the sale and relieve their burden. It is not a legal obligation, but an ethical virtue.
Q: Is exploiting the vulnerable—such as charging the desperate higher rates—prohibited?
A: Yes. This is exactly the injustice Islam warns against. Imam al-Ghazali emphasises that a believer never takes advantage of someone’s need. Justice means protecting the weak, not burdening them further.
Q: What if we regret selling something and the buyer does not return it?
A: Not every buyer will act with ihsan. The example is an illustration of ideal conduct. If regret happens, we accept Allah’s decree and trust that He compensates us in other ways.
Q: Is lending money without expecting repayment considered ihsan?
A: Yes—if someone genuinely cannot repay and you lend to preserve their dignity, this is a form of quiet charity. But we balance generosity with wisdom, avoiding manipulation.
Q: How do we balance helping the poor with not harming other traders?
A: Each case requires wisdom. One aims to offer relief to the needy without intentionally damaging others’ livelihoods. Selective discounts, alternative locations, or varied business strategies can help maintain this balance. Your intention should be ihsan, and the outcomes are with Allah.
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