What is the ruling when an agent sells entrusted property on credit when the principal stipulated only cash payment, and both the agent and the buyer confirm the principal's claim?

General Chapter

Al-Mughni

Book of Agency

Book 19 · Issue 1 · Bab 1

Open in Qurani

Primary text

If an agent sells entrusted property on credit when the principal explicitly authorized only a cash sale, and both the agent and the buyer affirm the principal's statement, the sale is voided. The principal has the right to demand the return of the item from either the buyer or the agent if the item is extant, or demand its value if it has perished. If the principal takes the value from the agent, the agent reverts against the buyer because the loss occurred while the item was in the buyer's possession, establishing liability upon the buyer. If the principal takes the value from the buyer, the buyer has no recourse against the agent.