What is the ruling on the agent's authority regarding payment terms if the principal grants unrestricted authority (itlaq) in the agency?

General Chapter

Al-Mughni

Book of Agency

Book 19 · Issue 3 · Bab 1

Open in Qurani

Primary text

If the principal's authorization is unrestricted, the agent may only sell for immediate cash using the standard currency of the locality. This is because immediacy (hulul) is the default nature of a sale. Unrestricted mention of currency refers to the currency of the locality. For example, if a slave is sold for ten dirhams without specifying terms, it is understood as immediate payment in the local currency.

Supporting text

The opinion of Al-Shafi'i aligns with the view that the default is immediate payment. Abu Hanifa and his companions hold that the agent may sell on credit because credit sales are customary and thus analogous to immediate sales.