Is a contract voidable if the seller knew of the buyer's bankruptcy?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
If the seller was aware of the buyer's bankruptcy at the time of sale, the right to void the contract does not exist.
Supporting text
This ruling is based on the principle that the seller entered the transaction with full knowledge of the insolvency, which precludes the option to void the contract, unlike the case where the seller was unaware.