Hakīm ibn Hizām is the major or
main narrator of a hadith that has become very important in the development of
contract law in Muslim nations. He is also known as one of the few to have been
born within the Kaabah, the holiest site in Islam. His father was Hizām Ibn
Khuwailid. Hizām was a merchant, who ask Rasulullah SAW whether it was
permissible for him to sell to a customer goods that he doesn't yet possess
(short selling, options or futures contracts in Western parlance). Rasulullah
SAW forbade that. (Please refer the notes with regards to the forbidding of
short-selling being the basis of Islamic Financial System)
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| The hand on Top is better then the bottom. |
History has recorded that he is
the only person who was born inside the Kaabah itself.Together with a group of friends,
his mother had gone inside this ancient House of God to inspect it. On that
particular day it was open because of a festive occasion. She was pregnant and
labor pains suddenly gripped her. She was unable to leave the Kaabah. A leather
mat was brought to her and she gave birth on it. The child was named Hakīm. His
father was Hizām who was the son of Khuwailid. Hakīm was therefore the nephew
of the Sayyidatuna Khadijah RA, the daughter of Khuwailid, May Allah SWT be
pleased with her.
Hakīm grew up in a wealthy and
noble family which enjoyed a high status in Makkan society. He was also an
intelligent and well-mannered person who was well respected by his people. He
was held in such esteem that he was given the responsibility of the rifadah
which involved giving assistance to the needy and those who had lost their
property during the season of pilgrimage. He took this responsibility seriously
and would even help needy pilgrims from his own resources.
Hakīm was a very close friend of Rasulullah
SAW, before the latter's call to prophet hood. Even though he was five years
older than Rasulullah SAW, he used to spend much time talking to him and
enjoying hours of pleasant companionship. Rasulullah SAW in his turn felt great
affection for Hakīm.
Their relationship was further
strengthened when Rasulullah SAW married his aunt, Sayyidatuna Khadijah binti
Khuwailid RA.
What is truly amazing is that in
spite of the close friendship between Hakīm and Rasulullah SAW, Hakīm did not
become a Muslim until the conquest of Makkah, more than twenty years after the
start of the Rasulullah's mission. One would have thought that someone like Hakīm
whom Allah had blessed with a sound intellect and who was so well-disposed to Rasulullah
SAW, would have been among the first to believe in him and follow the guidance
he brought. But that was not to be.
Before and after his prophet hood
is a close friend of Rasulullah SAW, when the Quraish boycott of Rasulullah SAW,
he was not included, because the honor of Rasulullah. He is new to Islam when
the conquest of Makkah and famous as the man who many good services and
charity.
Just as we are astonished at the
late acceptance of Islam on the part of Hakīm, he himself later in life was
also amazed. In fact, as soon as he accepted Islam and tasted the sweetness of
iman (faith), he began to feel deep regret for every moment of his life as a mushrik
and a denier of Allah's religion and of His Rasul.
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| Hakim friend during Jahilliyah and Islam. |
His son once saw him weeping
after his acceptance of Islam and asked: "Why are you weeping, my
father'?" "Many things cause me to weep, my dear son. The most
grievous is the length of time it took for me to become a Muslim. Acceptance of
Islam would have given me so many opportunities to do good which I missed even
if I were to have spent the earth in gold. My life was spared at the battle of
Badr and also at the battle of Uhud. After Uhud, I said to myself. I would not
help any Quraish against Rasulullah SAW, and I would not leave Makkah. Then,
whenever I felt like accepting Islam I would look at other men among the Quraish,
men of power and maturity who remained firmly attached to the ideas and
practices of Jahiliyyah and I would fall in line with them and their
neighbors... Oh, how I wish I had not done so. Nothing has destroyed us except
the blind following of our forefathers and elders. Why should I not weep, my
son?"
Rasulullah SAW himself was
puzzled. A man of sagacity and understanding like Hakīm ibn Hazm, how could
Islam remain "hidden" from him? For a long time, Rasulullah SAW had
dearly hoped that he and a group of persons like him would take the initiative
and become Muslims. On the night before the liberation of Makkah, he, May Allah
blesses him and grants him peace, said to his companions:
"There are four persons in
Makkah whom I consider to be above having any dealing with shirk and I would
dearly like them to accept Islam." "Who are they, O Messenger of
God?" asked the companions. "Attab ibn Usayd, Jubayr ibn Mutim, Hakim
ibn Hazm and Suhayl ibn Amr," replied Rasulullah SAW. By the grace of God,
they all became Muslims.
When Rasulullah SAW, entered
Makkah to liberate the city from polytheism and the ways of ignorance and
immorality, he ordered his herald to proclaim: "Whoever declares that
there is no god but Allah alone, that He has no partner and that Muhammad is
His servant and His Messenger, he is safe...
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| To give is better then receiving |
Whoever sits at the Kaabah and
lays down his weapons, he is safe. Whoever enters the house of Abu Sufyan, he
is safe.
Whoever enters the house of Hakīm
ibn Hazm, he is safe..." The house of Abu Sufyan was in the higher part of
Makkah and that of Hakīm RA was in the lower part of the city. By proclaiming
these houses as places of sanctuary, Rasulullah SAW wisely accorded recognition
to both Abu Sufyan and Hakīm, weakening any thought they might have of
resisting and making it easier for them to be more favorably disposed to him
and his mission.
Hakīm RA embraced Islam
wholeheartedly. He vowed to himself that he would atone for whatever he had
done during his Jahiliyyah days and that whatever amounts he had spent in
opposing Rasulullah SAW; he would spend the same amounts in the cause of Islam.
He owned the Dar an-Nadwah, an
important and historic building in Makkah, where the Quraish held their
conferences during the days of Jahiliyyah. In this building the Quraish leaders
and chieftains would gather to plot against Rasulullah SAW.
Hakīm RA decided to get rid of it
and cut himself off from its past associations which were now so painful to
him. He sold the building for one hundred thousand dirhams. A Quraish youth
exclaimed to him: "You have sold something of great historical value and
pride to the Quraish, uncle."
"Come now, my son,"
replied Hakīm RA. "All vain pride and glory has now gone and all that
remains of value is taqwa - consciousness of Allah SWT. I have only sold the
building in order to acquire a house in Paradise. I swear to you that I have
given the proceeds from it to be spent in the path of Allah Almighty."
Hakīm ibn Hazm RA performed the
Hajj after becoming a Muslim. He took with him one hundred fine camels and
sacrificed them all in order to achieve nearness to Allah SWT. In the following
Hajj, he stood on Arafat. With him were one hundred slaves. To each he gave a
pendant of silver on which was engraved: "Free for the sake of Allah Almighty
from Hakīm ibn Hazm." On a third Hajj, he took with him a thousand sheep -
yes a thousand sheep and sacrificed them all at Mina to feed the poor Muslims
in order to attain nearness to Allah SWT.
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| Hakim bin Hizam RA - Sacrifices hundredth of camels |
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| Hakim bin Hizam RA - Sacrifices Thousands of Sheeps |
While Hakīm RA was generous in
his spending for the sake of Allah SWT, he also still liked to have much. After
the battle of Hunain, he asked Rasulullah SAW for some of the booty which Rasulullah
SAW gave. He then asked for more and Rasulullah SAW gave him more. Hakīm RA was
still a newcomer to Islam and Rasulullah SAW was more generous to newcomers so
as to reconcile their hearts to Islam. Hakīm RA ended up with a large share of
the booty. But Rasulullah SAW peace be upon him, told him:
"O Hakīm! This wealth is
indeed sweet and attractive. Whoever takes it and is satisfied will be blessed
by it and whoever takes out of greed will not be blessed. He would be like
someone who eats and is not satisfied. The upper hand is better than the lower
hand (it is better to give than to receive)."
The kind words of advice had a
deep and immediate effect on Hakīm RA. He was mortified and said to Rasulullah
SAW: "O Rasulullah! By Him who has sent you with the truth, I shall not
ask anyone after you for anything."
During the caliphate of Saidina Abu
Bakr Siddiq RA, Hakīm RA was called several times to collect his stipend from
the Bait al-mal but he refused to take any money. He did the same during the
caliphate of Saidina Umar ibn al-Khattab RA whereupon Saidina Umar Al Khattab
RA addressed the Muslims: "I testify to you, O Muslims, that I have called
Hakīm to collect his stipend but he refuses."
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| Giving is all that matter. |
Hakīm RA remained faithful to his
word. He did not take anything from anyone until he passed away. From Rasulullah
SAW, he had learnt the great truth that contentment is riches beyond compare.
Two additional inspiring incidents from Hakīm ibn Hazm RA life,
firstly, from before he embraced Islam, at the time when the Quraish boycotted
the Muslims.
(1) One day Abu Jahl, who was
continually on the lookout for those trying to assist the Muslims, met Hakīm,
with a slave carrying a bag of flour, and they appeared to be making for the
dwellings of the Bani Hashim. He accused them of taking food to the enemy and
threatened to denounce Hakīm before Quraish. While they were arguing, Abu
l-Bakhtari, another man of Asad, came and asked what the matter was, and when
it was explained to him he said to Abu Jahl: “It is his Aunt’s flour and she
hath sent to him for it. Let the man go on his way.” Neither Hakīm nor Abu
-Bakhtari were Muslims, but the passing of this bag of flour from one member of
the clan of Asad to another could concern no one outside that clan. The
interference of the Makhzumite was outrageous and intolerable; and when Abu
Jahl persisted Abu l-Bakhtari picked up a camel’s jaw bone and brought it down
on his head with such force that he was half stunned and fell to the ground,
whereupon they trampled him heavily underfoot, to the gratification of Saidina
Hamzah RA who happened to come by at that moment.
(2) And secondly after he embraced Islam:
Abu Hiam says that they had never
heard of anyone in Madinah who provided more transport for people proceeding in
the path of Allah SWT than Hakīm bin Hazm RA. Two Bedouins once came to Madinah
to ask for someone to provide them with transport to proceed in the path of
Allah SWT. When they were directed to Hakīm bin Hazm RA they approached him
while he was with his family. When he asked them what they required and they
duly informed him, he told them not to be hasty and to wait until he comes out
to see them. (When he came out) He was wearing clothing that was brought from
Egypt. It resembled a spider’s web and cost four dirhams. He took his staff
with him and his slaves also accompanied him. Each time he passed by a rubbish
dump he used the end of his staff to pick up any piece of cloth that could be
used to patch the satchels of the camels going out in the path of Allah SWT. He
would then dust off the cloth and hand it over to his slave saying: “Keep this
piece of cloth to mend the satchels.”
One of the Bedouins said to the
other: “Oh dear! Save us from him! By Allah! All this man has with him are
pieces of cloth from rubbish dumps.” The other said: “Shame on you! Do not be
hasty. Let us first wait and see.” Hakīm bin Hazm RA then took them to the
market place where he saw two large, fat pregnant she camels. He purchased them
along with their supplies and said to his slave: “Use the pieces of cloth to
mend any of the satchels that need mending.” Thereafter he loaded on the camels
some food, wheat and fat. Furthermore he gave the two men money for their
expenses and made over the camels to them. The one Bedouin then said to his
companion: “By Allah! I have never seen a better collector of cloth pieces than
this man!”
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| Better to give!! |
(Notes with regards to the
forbidding of short-selling being the basis of Islamic Financial System)
Gharar is variously defined in English as 'uncertainty' or 'deceptive uncertainty'. The Qur'an uses the word "al-gharūr" to mean "deceptive". Ibn Taymiyyah writes that gharar exists in a contract when risk-taking is combined with the devouring of the property of one party by the other (see Kamali, M. H., Islamic Commercial Law, 2000, p. 151 for a more detailed discussion of these opinions.) In Towards an Objective Measure of Gharar in Exchange (Islamic Economic Studies, Vol. 7, Nos. 1 & 2, Oct. 1999, April 2000), Dr. Sami al-Suwailem uses simple game theory to argue that a gharar transaction occurs where one party can only benefit by the other's loss, under conditions of uncertainty. Commercial insurance is given as an example of this, since either the insured pays a premium and receives no countervalue, or the insurer pays out much more on a claim than was received by way of premium. Professor Mahmoud el-Gamal states that gharar involves the trading of unbundled risk. For example, if a homeowner insures his home conventionally against damage by fire, then the homeowner can be said to have separated the risk of fire from the right of ownership of the house (in other words, to have "unbundled" risk and ownership). The insurance company is paid to accept the risk of damage by fire, while the homeowner retains ownership of the house.
Many
commentators have argued that gambling shows gharar in its most extreme form.
However, gharar can also appear in a number of other forms. For example, to
sell a non-fungible asset (such as a horse) that one does not own (to
"sell short") is widely prohibited on the grounds of gharar since
only the owner of the horse has the right to sell it. In the event that the
seller cannot acquire the horse before it becomes deliverable to the buyer,
harm of some kind may befall the buyer. Neither can one sell an item of
uncertain quality, an unborn calf for example, since the buyer and the seller
do not know the precise quality of the thing that they are trading. A third
example of gharar can be seen where a contract document is not drawn up in
clear terms. For example if a contract of sale states in one place that the
price of the object of sale is £100 and in another place £200, then there is
uncertainty as to the price at which the parties have agreed to trade.
Scholars
generally distinguish between contracts containing minor gharar (which tend
to be seen as valid) and contracts containing substantial gharar (which are
generally prohibited). For example, it is not possible to know whether each
nut in a sack of nuts offered for sale is of edible quality, yet this is a
minor gharar (the buyer can of course test a few of the nuts before buying)
and so the sale of nuts in a sack is generally permitted. The facilitation of
ease is invoked as the justifying principle here, along with the absence of
any clear inequality in the values of the exchanged items (in this case,
money and nuts).
Evidence
for the prohibition of contracts containing gharar comes in the hadith of the
prophet Muhammad (pbuh) who prohibited the sale of fish in water on the
grounds that it is a gharar sale. Hence, it seems clear that if an object of
sale is not owned by person A, then it cannot be sold to Person B. Hakīm ibn
Hizām asked the Prophet (pbuh):
'Oh
Prophet of Allāh! A man comes to me and asks me to sell him what is not with
me, so I sell him [what he wants] and then buy the goods for him in the
market [and deliver]'. And the Prophet (pbuh) said: 'sell not what is not
with you'.
Hadīth: Sunan Abī Dāwūd, No. 3503.
However,
it is widely permitted for a seller to short-sell fungible items (wheat for
example) for delivery to the buyer at a later date under the contract of bay`
al-salam. For example, the prophet (pbuh) is reported to have allowed the
farmers of Medina to sell-short dates for delivery two and three years after
the time of contract. Since these farmers had not grown the dates in question
at the time of concluding the bay` al-salam contract, they were clearly in
the position of selling what they did not own. Following such evidence, many
jurists have distinguished between the short-selling of fungible items
(allowed in some cases) and the short selling of non-fungible items
(generally prohibited).
Ibn
Qayyim and some modern writers, including Hashim Kamali, argue that it is not
a sale without possession (qabd) that is prohibited, but rather a sale in
which the seller is unlikely to be able to deliver at the specified future
time. Hence, Kamali argues that a futures contract (in which the seller
agrees to deliver an object of sale which he does not presently own) may be
permissible given the existence of a clearing house that guarantees delivery
of the sold item to the buyer. In effect, the clearing house guarantees
posession (qabd) of the object of sale at the future date.
Ibn
al-Qayyim writes: "There is nothing in the Book of Allāh nor in the
teachings of the Prophet (pbuh) nor in the sayings of any of his companions
to the effect that the sale of something non-existent is unlawful, neither by
specific nor general reference. The sunnah admittedly bans the sale of some
things which do not exist, just as there is a ban on some things which do
exist. Hence the effective cause (`illah) of prohibition is not the existence
or non-existence but uncertainty and gharar. This is when a thing cannot be
delivered, whether existent or not. The essential element of a sale is
delivery of the sold thing, and if the seller is unable to deliver, this is
gharar, gambling and risk."
Ibn al-Qayyim, I`lām al-Muwaqqi`īn, Vol. 1, p. 219 (cited by al-Amine, M. in Derivatives Instruments in Commodity Markets: an Islamic Analysis, International Islamic University Malaysia, undated).
Hence,
the above-mentioned permission for a farmer to short-sell commodities using
bay` al-salam. This contract has traditionally been used by farmers and other
commodity producers to finance their production, since payment is received
up-front and this allows the farmer to buy seed and pay his workers before
harvest time. In modern times, the permission for bay` al-salam has been
cited as evidence for permitting the short-selling of commodities in general.
However, some jurists see bay` al-salam as an exception to the normal rules
of sale and therefore do not allow a general permission for short-selling to
be inferred from it.
It is
sometimes proposed that business investment involves gharar because the
outcome is unknown. Take for example a mushārakah investment in which two
partners contribute a specified amount of cash in return for a known share of
final profit. If the mushārakah partners agreed to share the profits of the
venture in a 'fair ratio' without contractually defining what they meant by
the word 'fair', major gharar would clearly be in evidence with respect to
the contractual terms and such a contract is therefore likely to be judged
void. But what if the profit-sharing ratios are defined clearly, at say 50%
each? Is there not still gharar with regard to how much money each partner
will receive at the end of the investment period? If one takes gharar to mean
a lack of knowledge pertaining to a future outcome, then every act of man
carries an unknown outcome. The outcome of a business venture is unknown at
the outset, as is the quality of the unborn calf in the above example, yet
business ventures are not generally forbidden under sharī`ah. The issue here
is resolved by considering whether a gain is made by one of the partners at
the expense of the other. So long as each partner's contribution commands a
freely negotiated percentage share of the final profit or loss, then neither
can be said to have devoured the wealth of the other unjustly. There is
certainly a lack of knowledge, but not of the type that benefits one party at
the expense of another. Whatever profit or loss arises will be shared fairly
between the partners. This is the essence of a contract of investment, in
contrast to a contract of exchange in which each countervalue must be
precisely known at the time of contracting.
Abridged from The Problem
With Interest, 3rd edition, 2010.
|
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| Do good deeds, charity while you still have the time |
HADITHS NARRATED BY HAKIM BIN
HIZAM RA
Found in: Obligatory Charity Tax
(Zakat)
Hadith no: 508
Narrated: Hakim bin Hizam
The Prophet said, "The upper
hand is better than the lower hand (i.e. he who gives in charity is better than
him who takes it). One should start giving first to his dependents. And the
best object of charity is that which is given by a wealthy person (from the
money which is left after his expenses). And whoever abstains from asking
others for some financial help, Allah will give him and save him from asking
others, Allah will make him self-sufficient.
Found in: Obligatory Charity Tax
(Zakat)
Hadith no: 517
Narrated: Hakim bin Hizam
I said to Allah's Apostle,
"Before embracing Islam I used to do good deeds like giving in charity,
slave-manumitting, and the keeping of good relations with Kith and kin. Shall I
be rewarded for those deeds?" The Prophet replied, "You became Muslim
with all those good deeds (Without losing their reward)."
Found in: Sales and Trade
Hadith no: 293
Narrated: Hakim bin Hizam
Allah's Apostle said, "The
seller and the buyer have the right to keep or return goods as long as they
have not parted or till they part; and if both the parties spoke the truth and
described the defects and qualities (of the goods), then they would be blessed
in their transaction, and if they told lies or hid something, then the
blessings of their transaction would be lost."
Found in: Sales and Trade
Hadith no: 296
Narrated: Hakim bin Hizam
The Prophet aid, "The buyer
and the seller have the option to cancel or to confirm the deal, as long as
they have not parted or till they part, and if they spoke the truth and told
each other the defects of the things, then blessings would be in their deal,
and if they hid something and told lies, the blessing of the deal would be
lost."
Found in: Sales and Trade
Hadith no: 321
Narrated: Hakim bin Hizam
The Prophet said, "The buyer
and the seller have the option of cancelling or confirming the deal unless they
separate."
Found in: Sales and Trade
Hadith no: 323
Narrated: Hakim bin Hizam
The Prophet said, "The buyer
and the seller have the option of cancelling or confirming the bargain unless
they separate, and if they spoke the truth and made clear the defects of the
goods, them they would be blessed in their bargain, and if they told lies and
hid some facts, their bargain would be deprived of Allah's blessings."
Found in: Sales and Trade
Hadith no: 327
Narrated: Hakim bin Hizam
The Prophet said, "Both the
buyer and the seller have the option of cancelling or confirming the bargain
unless they separate." The sub-narrator, Hammam said, "I found this
in my book: 'Both the buyer and the seller give the option of either confirming
or cancelling the bargain three times, and if they speak the truth and mention
the defects, then their bargain will be blessed, and if they tell lies and
conceal the defects, they might gain some financial gain but they will deprive
their sale of (Allah's) blessings."
And many more……..
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| Hadith in response to Hakim bin Hizam wanting for more |
