What is the status of a vendor's right to reclaim the actual item sold when the buyer dies while bankrupt?

General Chapter

Al-Mughni

Book of the Insolvent (Bankruptcy)

Book 14 · Issue 2 · Bab 1

Open in Qurani

Primary text

The fifth condition for the entitlement to reclaim the actual item from a bankrupt person is that the buyer must be alive. If the buyer dies, the vendor stands equally with all creditors, whether the bankruptcy was known before death (leading to sequestration) or discovered after death. This view is held by Malik and Ishaq. The evidence for this ruling is derived from the hadith narrated by Abu Hurairah regarding the Prophet's judgment: "Any man who dies, or becomes bankrupt, and the owner of the merchandise finds it in its original form, he has the greatest right to his merchandise." This hadith is narrated by Abu Dawud and Ibn Majah. Furthermore, the contract is subject to rescission upon mutual agreement, thus it can be rescinded due to the impossibility of receiving payment, similar to when the subject of the deferred payment is unavailable. The bankruptcy itself is a cause allowing rescission, which applies even after death, analogous to the case of a defect.

Supporting text

Al-Shafi'i permits rescission and reclaiming the item based on a narration from Ibn Khaldah al-Zurqi, quoting Abu Hurairah that the Prophet, peace be upon him, ruled: "Any man who dies, or becomes bankrupt, and the owner of the merchandise finds it in its original form, he has the greatest right to his merchandise." Another position, narrated from Al-Istakhri among the Shafi'is, holds that the seller may reclaim the goods upon the buyer's death even if the estate has sufficient assets to cover the debt, but this view is considered aberrant and contrary to established scholarly consensus and Sunnah.