Under what circumstances is an agent's sale for immediate cash valid when authorized for a deferred sale?
General Chapter
Al-Mughni
Book of Agency
Primary text
There is a view that the validity hinges on whether the principal had a specific interest in deferment. If there was no interest in the deferment, the sale is valid. Interest in deferment exists if the cash price poses a risk, such as the principal being harmed by possessing the cash immediately, fearing loss or confiscation of the funds, or if the item's condition is feared to change by the time the deferred payment is due. In such cases, selling for immediate cash is treated as if the agent acted without permission.
Supporting text
If there is a specific interest in the deferment, the agent's action is disallowed unless the benefit of immediate cash is equivalent to or greater than the deferred condition, in which case the ruling is established by implication or analogy. If the explicit term (deferment) holds a specific interest, abandoning it is not permissible, nor is establishing a ruling for the unstated term (immediate cash).