Does an agent gain ownership if delegated to execute a void contract?

General Chapter

Al-Mughni

Book of Agency

Book 19 · Issue 1 · Bab 1

Open in Qurani

Primary text

If a principal delegates an agent to enter into a void contract (*'aqd fasid*), the agent does not gain ownership of the subject matter. This is because Allah the Almighty has not permitted that transaction, and since the principal does not own the subject matter, the agent is even further removed from ownership. Ownership is not gained in the void contract because the principal did not authorize the valid contract.

Supporting text

Al-Shafi'i holds this view. Abu Hanifa maintains that the agent gains ownership of the valid contract, reasoning that authorization for the void contract implies greater authorization for the valid one.