What is the ruling on an assignment of debt when the underlying sale contract is rescinded before the assignee has paid the price?
General Chapter
Al-Mughni
Book of Assignment (Transfer of Debt)
Primary text
According to Al-Qadi (The Judge), the assignment becomes void if the buyer rescinds the sale before the assignee makes payment. Consequently, the buyer reverts to owing the debt to the assignee, and the original seller is absolved of liability toward the buyer, as the basis for the debt (the price) is extinguished by the rescission, necessitating the nullification of the assignment that relied on that debt.
Supporting text
Abu al-Khattab holds, in one position, that the assignment does not become void. This is because the buyer validly transferred his right to the price to the assignee, thereby discharging his own liability for the price. This discharge is independent of the subsequent rescission of the original contract, analogous to returning an item given in exchange when the sale is rescinded; the exchange item is not reclaimed.