If a person hires a carrier to transport goods to a city and the carrier becomes bankrupt before any transport occurs, what is the ruling on the contract?

General Chapter

Al-Mughni

Book of the Insolvent (Bankruptcy)

Book 14 · Issue 3 · Bab 1

Open in Qurani

Primary text

If the carrier becomes bankrupt before transporting anything, the hirer has the right to dissolve the contract. If the carrier has transported part of the goods or covered part of the distance, the primary principle of our school dictates that the hirer does not have the right to dissolve the contract.

Supporting text

According to the opinion of Al-Qadi, the hirer retains the right to dissolve the contract even if partial transport has occurred. If dissolution occurs, the obligation to transport the remaining portion ceases, and the hirer shares with the creditors for the agreed-upon rent corresponding to the portion already transported. Furthermore, based on Al-Qadi's view, the contract is entirely dissolved, and the hirer shares with creditors based on a fair rent (*ajr al-mithl*) for the portion already transported, based on the reasoning established in the previous matter concerning the land lease.