Islam - Its Meaning for Modern Man — Page 268
268 Trade, commercial partnerships, co-operatives, joint stock companies, are all legitimate activities and operations (2:276). Islam does, however, lay down regulations with regard to commercial activities designed to secure that they be carried on honestly and beneficently. All contracts, whether involving large amounts or small, must be reduced to writing, setting out all the terms thereof, as “this is more equitable in the sight of Allah, and makes testimony surer and is more likely to keep out doubts, and avoid disputes” (2:283). The writing should set out the terms agreed upon fairly, and as a further precaution it is laid down that the terms of the contract shall be dictated by the person who undertakes the liability. If the person on whose behalf the liability is undertaken is a minor, or of unsound judgement, then his guardian or the person representing his interest should dictate the terms of the contract (2:283). Monopolies and the cornering of commodities are prohibited; so also the holding back of produce from the market in expectation of a rise in prices. All this is opposed to beneficence, and those who indulge in such practices seek to take advantage of the need or distress of their fellow beings. The seller is under obligation to disclose any defect in the article offered for sale. Goods and commodities for sale should go into the open market, and the seller or his agent must be aware of the state of the market before proposals