Therefore, before deciding about the auction sharia law which is one form of muamalah, need to understand first of ihwalnya. Auction (auction) in terms of contemporary muamalah transaction known as a form of sale of public goods to the highest bidder. Auctions can be a supply of certain goods to bidders who originally opened the auction with a low price, then getting up until he is given to prospective buyers with the highest price, as Dutch-style auctions (Dutch Auctions) and called (auction up).

In addition, the auction can also be a supply of goods, which was originally opened the auction with a high price, then getting down to eventually be given to prospective buyers with the highest bid that the seller agreed upon by the auctioneer (auctioneer) as a power seller for the auction, and usually marked by tapping (called the auction off). This auction is also used in the practice of selling shares on the stock exchange, ie the seller can offer the desired price, but if no buyer, the seller can lower the price until there is agreement.

Market auction (auction market) itself is defined as an organized market, where prices continually adjust to supply and demand, and usually with a standard commodity, the number of sellers and buyers large enough and did not know each other. According to the prevailing conditions in those markets, conducting the auction may use certain terms such as the seller may reject the bid deemed too low at the lowest price limit use / reserve (reservation price) or cut price (upset price). The objective is to prevent the dirty tricks of the conspiracy auction (auction ring) and the plot bidder (bidder's ring) is a group of buyers in the auction are conspiring to offer a low price, and if successful then auctioned off among themselves. Supply dirty as it is called supply cincai (collusive bidding / collusive tendering). As in the case of goods confiscated in the case of bankruptcy or other, the lowest price restrictions is to prevent cheating the game between the owner and buyer of goods. (Friedman in the Dictionary of Business Terms, 1987, An-Nawawi, al-Majmoo ', XII/304).

While the tender offer also has a meaning that is an offer or proposal by pentender untu obtain approval (acceptance) of the means to pay lawful (legal tender), or services in order to pay off a debt or obligation to avoid punishment or confiscation if not paid in full. In a business contract, the tender is an offer made by suppliers (suppliers) or a contractor to supply / bought goods or services, through an open bidding process (open tender). In the process, the bidders can compete with lower prices the desired quality, or supply a closed (sealed bidding) are included in the bid envelope stamped and opened simultaneously at a given time to choose the best from the aspect of price and quality and the participants can lowering the price again.

Tender is also often used for the implementation of a project, by way of project owners to auction and the prospective participant / project bidding or competitive tender with the lowest prices and goods / services as appropriate. Usually frequent irregularities in the form of a tender offer cincai / collusion (collusive tendering) with a practice or way of bribes and other unhealthy to win the bidding / tender.

In principle, Islamic law allows sale and purchase of goods / services that are permitted by way of auction in jurisprudence called covenant Bai 'Muzayadah. (Juzzi Ibn Al-Qawanin Al-Fiqhiyah, 290, Majduddin Ibn Taymiyyah, Muntaqal Akhbar, V/101) Practices auction (muzayadah) in a simple form ever done by the Prophet Muhammad, when he was approached by a friend from the Ansar asked for alms to him . Then the Prophet asked: "Is there in your house an asset / goods?" Friends had said that he has a hils (rag) is used as blankets and mats and a qi'b (large wooden cup) used to drink water. Then he told her to take the second item. When he handed it to the Prophet, he took it and offered it: "Who is interested in buying these two things?" Then someone offered them a price of one dirham. So he began to raise its bid: "Who would want to add it again with a dirham?" He said to another bidder: "I bought it for two dirhams" Then the Prophet gave him the item and give two dirhams auction results last Ansari told friends. (Narrated Abu Dawud, al-Nisaa'i and Ibn Majah) Ibn Qudama, Ibn Abd al-Bar and others reported consensus' (agreement) bolehnya scholars about buying and selling in an auction they have become the prevailing custom in the Muslim market in the past. As Umar bin Khathab also been done, so too because people need the auction practices as one way of buying and selling. (Al-Mughni, VI/307, Ibn Hazm, Al-Muhalla, IX/468) This opinion is shared throughout Hanafi, Maliki, Shafi'i and Hanbali and Dzahiri.

However, there are few scholars who object to such an-Nakha'i, and Al-Auza'i. (Ibn Rushd, Bidayatul Mujtahid, II/165, Ash-Syaukani, Nailul Authar, V/191) Sell-buy in the auction does not include the practice of usury, though he called bai 'muzayadah, from the word ziyadah additional meaningful as the meaning of usury. However, additional understanding here is different. In bai 'muzayadah the bidding price increases are more in the covenant sale by auction if the seller or buyer will be done by increasing the reduction in bids. While the practice of usury, which meant additional illegitimate is additional agreed in advance in the akad borrowing money or other goods ribawi. The practice of offering goods / services in the bidding of others - as prohibited by the Prophet. with his saying: "Do not offer something that other people have offered and no other person's hand in marriage proposal" (Narrated by Bukhari and Muslim) - can not be categorized in the sale of this auction, as proposed by the Az-Zaila'i in Tabyin Al-Haqaiq (IV/67).

More specifically, the practice of offering something that other people have offered can be classified into three categories: First, if there is an explicit statement of approval from the seller the price of one bidder, it is not allowed for others to bid without the permission of the approved bidders bid.

Second, if there is no indication of approval or rejection of the offer from the seller, then there is no prohibition laws for others to raise the bid or the first bid. This case is analogous to the hadith as Fatima bint Qais reported that the Prophet and Abu Jahm Mu'aawiyah have ask for her hand, it is because there is no indication of his approval of the proposal, he offered her to marry Usama bin Zaid.

Third, if there are indications of approval from the seller of a bid, although not stated explicitly, then according to Ibn Qudama still not allowed to be offered to others. As to the substance of the tender on terms not very different from the auction because the law both supply of goods / services to obtain the desired price with the condition of the goods / services as desirable.

But to prevent any irregularities and violations of Sharia, norms and ethics in the practice of auctions or tenders, Islamic law provides general guidelines and criteria as a guide line as follows: 1) Transactions carried out by a competent law based on mutual voluntary ( 'an taradhin ), 2) Object auctions and tenders must be lawful and useful, 3) full ownership of the goods or services sold, 4) Clarity and transparency of the goods / services that are auctioned or tendered without any manipulation like any other window dressings or 5) promissory delivery of goods from seller, 6) Clarity and certainty of the agreed price with no potential conflicts. 7) Do not use the way that leads to collusion and bribery to memangkan tenders and bids.

All forms of cheating engineering to make profits in the unauthorized practice of auctions and tenders are categorized in the practice of scholars najasy (gang / dirty tricks tenders and auctions) are forbidden, the Prophet Muhammad (Narrated by Bukhari and Muslim), or also can be included in the category Risywah (bribes ) if the seller or the buyer to use the money, facilities or services to win the tender or auction that did not meet the desired criteria for its business partners. Thus, it can be concluded that the legal profession is also an auctioneer and worked at the auction house allowed in Islam, during the general criteria as outlined above shariah.