What is the ruling on a sale and subsequent debt transfer (Hawalah) if the purchased slave is subsequently discovered to be free?
General Chapter
Al-Mughni
Book of Assignment (Transfer of Debt)
Primary text
If a buyer transfers the debt of the purchase price to another party (Hawalah) and the slave is later found to be free or rightfully claimed by another owner, the underlying sale contract is void, and the debt transfer (Hawalah) is also void. This is because it is established that the buyer owes no purchase price. Freedom is established either by proof or mutual agreement. If the transferring debtor (Muhil) and the receiving debtor (Muhal 'alayhi) agree on the slave's freedom, but the creditor (Muhtal) denies it and there is no external proof, their statement against the creditor is not accepted because they seek to nullify his right. This is analogous to a scenario where the buyer sells the slave, and then he and the original seller confess the slave was free; their confession is not accepted against a second buyer. If they present proof, it is not heard because their initial participation in the transaction contradicted it. If the slave presents proof of his freedom, it is accepted, and the Hawalah is nullified.
Supporting text
If the creditor accepts their claim of freedom but asserts the debt transfer was for something other than the slave's price, the creditor's word is accepted upon his oath because the default ruling is the validity of the Hawalah, and the other two parties are claiming its nullity, making the creditor's position stronger. However, if the two debtors provide proof that the Hawalah was indeed for the price, their proof is accepted because they are not denying the Hawalah itself.