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Hadith 5907

عَنْ زَيْدِ بْنِ أَسْلَمَ قَالَ سَمِعْتُ رَجُلًا سَأَلَ عَبْدَ اللَّهِ بْنَ عُمَرَ رَضِيَ اللَّهُ عَنْهُمَا عَنْ بَيْعِ الْمُزَايَدَةِ فَقَالَ ابْنُ عُمَرَ نَهَى رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَآلِهِ وَسَلَّمَ أَنْ يَبِيعَ أَحَدُكُمْ عَلَى بَيْعِ أَخِيهِ إِلَّا عَلَى الْغَنَائِمِ وَالْمَوَارِيثِ
Zaid bin Aslam says: I heard that a man asked Sayyiduna Abdullah bin Umar (may Allah be pleased with them both) about trade by auction (muzayadah). He said: The Messenger of Allah (peace and blessings be upon him) forbade that a man should make a deal over his brother’s deal, except in the case of spoils of war and inherited wealth.
Hadith Reference الفتح الربانی / كتاب البيوع والكسب والمعاش وما يتعلق بالتجارة / 5907
Hadith Grading محدثین: ضعیف
Hadith Takhrij «اسناده ضعيف لضعف ابن لھيعة۔ أخرجه البيھقي: 5/ 344 ، (انظر مسند أحمد ترقيم الرسالة: 5398 ترقیم بيت الأفكار الدولية: 5398»
Brief Explanation
Benefits: … The meaning of "muzayadah" is that one person states a price for an item, then the owner asks other people who will give more than this, another person, upon hearing this, offers a higher price than the first, and the owner sells it to him. This process can continue to a third or fourth person as well. This is a permissible method; the Prophet (sallallahu alayhi wa sallam) also conducted transactions in this manner.