The statement ascribed to the Prophet: 'Contracts are binding on both parties...'
Q: In an article in one of the daily newspapers issued in
the United Arab Emirates,
the writer mentioned that the Messenger of Allah (peace be upon him) said: “Contracts are binding on both parties except a contract which makes what is lawful to be unlawful or makes what is unlawful to be lawful.” (Part No. 4; Page No. 464) Since what I have already memorized is: “Muslims, contract parties, are bound by the legal conditions they agree to except a condition...”, or “Believers, contract parties, are bound by the legal conditions they agree to...” as related in the other narration, I searched for this Hadith in the books of Hadith which I have but I did not find it.Could you please tell us the degree of authenticity of this Hadith in the wording mentioned by the writer?
We do not know a Hadith ascribed to the Messenger of Allah (peace be upon him) in which he said: "Contracts are binding for both parties ..." Rather, this is what some scholars understood from Islamic legal texts, such as the Saying of Allah (which means):
O you who believe! Eat not up your property among yourselves unjustly except it be a trade amongst you, by mutual consent.
And His saying:
O you who believe! Fulfil (your) obligations.
So he expressed his own understanding in these words which you have quoted.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.