Is a complex exchange transaction involving unequal weights or measures permissible as a means to effect a trade at an unfavorable rate?

Chapter on Riba (Usury) and Exchange (Sarf)

Al-Mughni

Book of Sales

Book 12 · Issue 2 · Bab 3

Open in Qurani

Primary text

Transactions designed as legal devices, such as where one possessing ten sound coins borrows fifteen mixed coins from another, and they subsequently agree to trade the sound coins for the mixed ones at an unequal rate (or selling sound coins for an equal number of mixed ones and gifting the difference, or using the difference to purchase a low-value item), are fundamentally forbidden and considered foul. This prohibition extends to any transaction where a loan, overpricing of goods sold, or underpricing of goods bought is used as a device to receive compensation for a loan (Riba). Malik supported this prohibition.

Supporting text

Abu Hanifa and Al-Shafi'i permit such dealings if no explicit condition for the prohibited transaction is stipulated within the contract.