What is the liability of an agent who mixes the principal's money, given for purchasing an animal, with their own money, and the combined funds are lost?

General Chapter

Al-Mughni

Book of Agency

Book 19 · Issue 4 · Bab 1

Open in Qurani

Primary text

If the funds are mixed with money from which the principal's money can be distinguished, the agent bears no liability if only the principal's distinguishable money is lost, as it perished without transgression. If only one portion is lost (i.e., the principal's money cannot be identified), the agent must compensate for the loss. This compensation means the agent counts the lost amount from their own money, based on the presumption that the principal's funds remain intact. If the funds are mixed with money that cannot be distinguished without the principal's permission, the agent is liable, similar to the ruling for a deposit (wadi'ah).

Supporting text

If the agent mixes the funds with money that is indistinguishable without permission, the agent is liable, similar to the ruling for a deposit.