What is the ruling if the borrower specifies the amount and nature of the debt for collateralization?

General Chapter

Al-Mughni

Book of Loan for Use

Book 21 · Issue 2 · Bab 1

Open in Qurani

Primary text

If the lender specifies the exact amount and type of debt for which the slave is to be collateralized, or specifies the place (mahall) of the transaction, the collateralization becomes definite (ta'ayyun). If the borrower deviates from the specified type of debt, the transaction is invalid because it constitutes a contract the lender did not authorize, similar to if he had not authorized collateralization at all. If the borrower deviates regarding the time frame (e.g., collateralizing for an immediate debt when authorized for a deferred one, or vice versa), the transaction is invalid because the lender may object to the resulting restriction on his property rights.