Is a contract valid when a bankrupt person purchases goods after the imposition of bankruptcy restrictions?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
The contract for goods purchased by a bankrupt person after the imposition of restrictions (*Hajr*) upon him is voidable (*Faskh* is not permissible) due to the impossibility of recovering the price, regardless of whether the seller knew of the bankruptcy or not. This is because the buyer, being bankrupt, has no right to claim payment for the goods, thus precluding the right to void the contract due to the impossibility of recovering the price, similar to a deferred payment scenario. Furthermore, a seller who knowingly contracted with a bankrupt individual did so with full awareness of the debtor's ruined financial state, akin to purchasing an item with a known defect.
Supporting text
There is an opinion stating that the right to void the contract exists based on the generality of the supporting evidence (*khabar*) and because the contract was formed at the time the right to void might arise. This is analogous to a situation where a woman marries an indigent man who is unable to provide maintenance (*Nafaqah*); her right to void the marriage does not lapse. Another view holds that if the seller knew of the bankruptcy, there is no right to void the sale, but if the seller was unaware, the right to void exists, similar to the case of purchasing a defective item.