Islam Guidance

Selling at Exorbitant Rates is Also Fraud

Selling at Exorbitant Rates is Also Fraud 

Like adulteration, selling at a much higher rate to a person who is ignorant of its actual value, is also a type of fraud.

Imam Ja’far as-Sadiq (a.s.) says,

“To cheat a person who is unaware of the actual value of goods is soht.”

(Wasa’il ul-Shia vol.12 page 363)

 As we have seen “Soht” is described in the Twenty-fifth greater sin. Imam (a.s.) also says,

“Cheating the Muslims is Harām.”

and in another tradition he (a.s.) says,

“Do not cheat one who trusts you because it is not allowed to cheat him.”

(Wasa’il ul-Shia Vol. 12 page 364)

 Adulteration is indeed Harām in dealings but a proper deal with this man is valid in Shariah. Thus one who has been cheated has the prerogative to terminate the contract or accept it with some modifications. For example, if he delivered adulterated gold he can return it and accept pure silver.

 Now we shall quote a few legal rulings about cheating from Tauzihul Masael of Ayatullah Al-Uzma Agha SÄ«stani:

2079.* If a person sells ghee mixed with fat and specifies it, for example, he says: “I am selling 3 kilos of ghee” – the transaction will be void if the quantity of fat is more, to the extent that it cannot be called ghee. But if the quantity of fat is small, so that it can just be classified as ghee mixed with fat, the transaction will be valid. But the buyer has a right of refusal, based on the deficiency in the quality, and can therefore cancel the deal and ask for refund. And if ghee and fat are distinct from each other, the deal covering the fat will be void and the seller will have to refund the price of that fat and keep the fat for himself. But in this case also, the buyer has a right of cancelling the transaction of pure ghee which is in it. Where the seller does not say that he is selling a particular thing and just sells, say, 3 kilos of ghee he possesses, and if it turns out to be ghee mixed with fat, the buyer can return it and ask for pure ghee.

2133. * If a buyer does not know the price of the commodity, or was unconcerned about it at the time of purchase and buys the thing for higher than usual price, he can cancel the transaction if the difference of price is substantial and if the difference is established at the time of abrogation. Otherwise, the buyer cannot cancel the deal. Similarly, if the seller does not know the price of the commodity, or was heedless about it at the time of selling and sells the thing at a cheaper price, he can cancel the deal if the difference is substantial.

2132. * If one of the parties presents his commodity as better than it actually is and thereby attracts the buyer, or makes him more enthusiastic about it. This is called Khiyar tadlis.

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