Is the validity of assignment of debt (Huwalah) established by textual evidence?
General Chapter
Al-Mughni
Book of Assignment (Transfer of Debt)
Primary text
The validity of assignment of debt (Huwalah) is established by the Sunnah and consensus (Ijma). The evidence from the Sunnah is the Hadith narrated by Abu Hurairah, where the Prophet, peace be upon him, stated, "Delaying payment by one who is able is injustice, and if one of you is assigned to a solvent party, he should accept it." Another narration states, "Whoever is assigned his right to a solvent party, let him accept the assignment." Scholars have reached consensus on the permissibility of assignment of debt in general. It is derived from the concept of transferring a right from one liability to another.
Supporting text
Some scholars suggested it is a form of sale, where the assignor buys what is due from him in the assignee's liability with his own money from the assigned party's liability, permitting delayed receipt as a concession based on ease. However, the correct view is that it is a singular contract of facilitation, not reducible to sale, because if it were a sale, it would be invalid as selling debt for debt, and pre-possession separation would be disallowed as it involves usurious elements. Furthermore, its wording implies transfer, not sale, meaning it is binding immediately upon contract without the option of revocation, which aligns with the principles of Ahmad ibn Hanbal.