Is an agent liable if the depositary denies receiving entrusted funds when the agent failed to secure witnesses?

General Chapter

Al-Mughni

Book of Agency

Book 19 · Issue 1 · Bab 1

Open in Qurani

Primary text

When an agent is appointed to deposit funds and deposits them without securing witnesses, the agent is not held liable if the depositary denies receipt. This view is held by the companions of our school (Ashabuna). The basis is that the testimony of the agent is accepted regarding the return of the deposit or its perishing, making the requirement of securing witnesses in the initial deposit unnecessary, unlike a debt obligation.

Supporting text

Some scholars, including Al-Khiraqi, suggest that the agent's statement should not be accepted over the depositary, which aligns with one of two views held by the companions of Imam Al-Shafi'i. This alternative view argues that a deposit is only established through evidence, thus being analogous to a debt.