Nasai

(1) Its detail is as follows: An Ansari man came to you (the Prophet sallallahu alayhi wa sallam) to ask for something. You said: “Do you have anything (present) in your house?” He replied: Yes, there is a blanket. We cover ourselves with half of it and spread the other half underneath. And there is a bowl from which we drink water. You said: “Bring both things to me.” That man brought both items, and the Prophet sallallahu alayhi wa sallam sold them for two dirhams and gave the money to the Ansari, saying: “Buy food and drink for your family with one dirham, and buy an axe with the other dirham and bring it to me.” The man did as instructed. The Messenger of Allah sallallahu alayhi wa sallam fixed a handle into the (axe) with his blessed hand and said: “Go, cut wood and sell it. Do not let me see you for fifteen days.” The man went away, cut wood, and kept selling it. After that, he again presented himself before you, and he had collected ten dirhams. You said: “Buy food and drink with some of the money and buy clothes with some of it.” Then you said: “This (earning through labor and work) is much better for you than that you come on the Day of Resurrection and your face is stained due to begging from people... etc.” (Sunan Abi Dawud, Zakat, Hadith: 1641, and Sunan Ibn Majah, Trade, Hadith: 2198)

(2) “Sold through auction”: In the aforementioned hadith, it is also mentioned that you said: “Who will buy these?” A man said: I will buy them for one dirham. You said: “Who will give more than this?” Another man said: I will buy them for two dirhams. You sold them to him. (Sunan Abi Dawud, Zakat, Hadith: 1641, and Sunan Ibn Majah: Trade, Hadith: 2198) Such a sale is called a sale by auction, in which the seller is not satisfied with the first offer, so he asks a new person for a new bid, even if he has to do this ten times. He will sell to the person whose bid he likes. In principle, there is nothing wrong with this sale because the seller has rejected the first buyer’s offer, so it is permissible for a new buyer to make a new bid. Outbidding is only prohibited when the buyer and seller are negotiating the price and a decision of acceptance or rejection has not been made, or the price has been settled and both have accepted it. This flaw does not exist in auction, so this sale is permissible. However, there is a possibility of inflation arising from this, because sometimes buyers start increasing the price out of stubbornness, so this method should not be adopted without necessity. The Messenger of Allah sallallahu alayhi wa sallam adopted this method for the benefit of the poor man. This sale should only take place when the intention is to sell the item. If the purpose is not to sell the item but only to increase the price through auction, then the sale by auction is impermissible. However, if auction does not cause inflation, then there is no harm in this sale.