Compensation for Unexpected Losses

Written by: Shaykh Hafiz Abdul Sattar Hamad (May Allah protect him)

The Prophet Muhammad (peace be upon him) said:

"Tell me, if Allah destroys the fruit, then on what basis would one of you take his brother’s wealth?"

[Sahih Bukhari, Book of Sales: Hadith 2198]


Key Points:​

Case of a Purchased Orchard Facing a Calamity:

If a person purchases an orchard and an unexpected calamity occurs—such as a flood, storm, heavy rain, or hailstorm—resulting in the destruction of the fruit, the orchard owner should show leniency and not charge the buyer for the fruit. If the payment has already been taken, it should be refunded. This is because, had the fruit been lost to a natural disaster or flood while still with the original owner, he would have had to bear the loss himself. Therefore, he should bear it in this case as well. Demanding payment for the fruit in such circumstances is unjust and impermissible.

Additional Clarification in Another Hadith:

The Prophet (peace be upon him) further explained:

"Whoever sells fruit, and an affliction befalls the fruit after the sale, causing its loss, then he should not take payment from his brother. On what grounds would he consume his brother’s wealth?"

[Sahih Muslim, Book of Farming: Hadith 1554]


Scholarly Opinion on Compensating for Losses Due to Calamities:

Most scholars agree that losses due to unexpected calamities should be forgiven. However, some scholars argue that no one should be pressured to withdraw from an agreed-upon sale. They suggest compensating for the loss as a better course of action. They recommend assessing the nature of the calamity: if the loss is less than one-third, it may not be considered significant; however, if it exceeds one-third, compensation should be provided by the seller. Nonetheless, the Hadith mentioned contradicts this stance.

Further Evidence from Jabir (may Allah be pleased with him):

Jabir (may Allah be pleased with him) narrated that the Prophet (peace be upon him) instructed compensation for losses due to unexpected calamities.

[Nasa'i, Book of Sales: Hadith 4533]

This guidance underscores the importance of fairness and compassion in financial dealings, especially when unforeseen circumstances affect transactions.
 
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