Whose statement is accepted when the parties disagree on the specific authorized terms of transactions (credit sale or purchase price)?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 4 · Bab 1

Open in Qurani

Primary text

If the owner authorized a deferred sale (bay' nasee'ah) and a purchase up to a certain price (ten dirhams), but the manager claims authorization was for an immediate sale (bay' naqdan) and a lower price (five dirhams), the manager's statement is accepted. This view is narrated from Ahmad and held by Abu Hanifa. The basis is that both parties agreed on the existence of permission (idhn), differing only on its characteristics, making the manager's assertion conclusive, similar to denial of a prohibition.

Supporting text

An alternative view holds that the statement of the capital owner is accepted, as is the view of Al-Shafi'i, based on the principle that the default is the absence of permission, and the owner's statement is primary regarding the establishment of permission itself.