The first: if the sale is conducted by open bidding and the final bid is made by his child or by himself, then the sale is valid, because there is no ground for suspicion.

For example, he gives him a car to sell publicly at auction. The bids rise, then rise again, then rise again, until the final bid is made by his child, and he sells it to him. There is no cause for suspicion in this. Hence, some scholars have made an exception for this case, saying: if, during the auction call, the final bid is made by his child, there is no objection to selling it to him, because there is no ground for suspicion.

The second: if the principal specifies the price for the agent and says, “Sell it.” He asks, “For how much should I sell it?” The principal replies, “Sell it for ten thousand.” If he then sells it to his child for ten thousand, this is permissible, because the principal has specified the price and does not want more than that. It is therefore valid for him to sell it to his child, since suspicion is then absent.

However, if the principal says to the agent, “Sell it for ten thousand,” on the assumption that this is the highest price, while market prices have risen but the principal is unaware of this, may the agent in this case sell it to his child?

The answer is no, because this is deception. If the agent knows that the value of goods has increased, while the principal is unaware of market prices, then he must explain the matter to him and inform him that the item is worth more. For if he concealed this and had it sold for ten thousand, he would be acting deceitfully. The Prophet, may Allah’s peace and blessings be upon him, said: “Whoever deceives is not of us” (1). For some people—may Allah protect us—exploit the principal’s naivety and ignorance of the actual situation, without informing him of it; this