Does the principal debtor's release of the guarantor absolve the guarantor of liability?
Chapter on Guarantee (Daman)
Al-Mughni
Book of Assignment (Transfer of Debt)
Primary text
The guarantor is absolved if the guaranteed party states to the guarantor, 'I have released you from the guarantee' (Abrarātuka min al-kaffālah). This is because the obligation is a right belonging to the guaranteed party, and it lapses upon their relinquishment, similar to a debt. The same ruling applies if the guaranteed party states, 'You have been released from me' (Qad bari'tu ilayka minhu) or 'I have returned him to you' (Qad radadtuhu ilayka), as this constitutes an acknowledgment of the fulfillment of the right, analogous to acknowledgment in surety agreements (dhamān). This opinion is attributed to Muhammad ibn al-Hasan.
Supporting text
It is held by some that stating, 'I have been released from the debt for which you guaranteed' (Bari'tu min ad-dayn alladhī kuffilta bihi), constitutes an admission of having received the right (iqrār bi-qabḍ al-haqq). However, the former view is considered more sound because the guarantor's release can occur without the right being physically received, either through the creditor's release or the death of the principal debtor.