What is the ruling when an agent sells entrusted property on credit contrary to the principal's instruction for cash, and both the agent and buyer deny the principal's claim, asserting permission for a credit sale?
General Chapter
Al-Mughni
Book of Agency
Primary text
If the agent and buyer both deny the principal's claim and assert that the principal permitted a credit sale, the principal must swear an oath according to the opinion of Al-Qadi. If the principal prevails, they may reclaim the item itself if it remains, or its value if it has perished, from whomever they choose between the buyer and the agent. If the principal recovers the value from the buyer, the buyer has recourse against the agent only for the purchase price the agent received, as the agent failed to deliver the sold item. If the principal recovers the value from the agent, the agent cannot seek recourse from the buyer immediately because the agent acknowledges the validity of the sale and the deferred price, implying the principal wronged the agent by recalling the money prematurely. Once the term expires, the agent reverts against the buyer for the lesser of the item's value or the stated price. This is because if the value is lower, the agent has not paid more than what they lost, and thus cannot claim more than what they paid. If the price is lower, the agent concedes that they owe the buyer no more than that price, and that the principal wronged the agent by demanding more than the price, so the agent is not compensated for the amount the principal wronged them by collecting.