Does the seller lose the right of recovery (right to reclaim the object) if they have taken part of the sale price?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
If the seller has taken possession of any part of the price, the right of recovery is forfeited. This view is held by Ishaq and the earlier opinion of Al-Shafi'i. The basis for this ruling is the narration from Abu Bakr bin Abd al-Rahman, relating from Abu Hurayrah, that the Messenger of Allah (peace be upon him) stated: "Any man who sells an item and finds his item in the possession of a man who has gone bankrupt, and he has not received anything of its price, then it belongs to him. But if he has received something of its price, then he is treated equally with the creditors (for the recovered price)." This hadith was narrated by Abu Dawud, Ibn Majah, and Al-Daraqutni. Furthermore, allowing recovery for only the remaining portion constitutes a partial cancellation of the transaction to the detriment of the buyer, which is not permissible for the seller.
Supporting text
Al-Shafi'i in his later opinion permits the seller to reclaim the object commensurate with the remaining unpaid price, analogizing it to the dissolution of a marriage before consummation. Malik permits the seller the option: either return what he received and reclaim the entire object, or remain alongside the other creditors without reclaiming the object.