If an agent sells at the market price and a higher bid is subsequently made during the option period, is the agent obligated to void the contract?
General Chapter
Al-Mughni
Book of Agency
Primary text
According to the sounder view, the agent is not obligated to void the contract because the higher bid is prohibited (mamnu') and against command, thus rendering it invalid to rely upon for rescission. Furthermore, the subsequent bidder may withdraw their increased offer, meaning voiding the contract based on uncertainty is not necessary.
Supporting text
An alternative view suggests the agent must void the contract because the increase represents an achievable surplus in price, similar to if the principal had approved the increase before the sale or after agreement but before the contract finalized. In this view, the prohibition targets the one making the increase, not the agent.