Who bears the liability (warranty) if the sold item is found to be rightfully claimed by another party (mustahaqqa)?

General Chapter

Al-Mughni

Book of Pledges (Collateral)

Book 13 · Issue 2 · Bab 1

Open in Qurani

Primary text

The liability rests upon the mortgagor, not the appointed trustee, provided the trustee informed the buyer that he was acting as an agent. This is the established doctrine of Al-Shafi'i. This applies to every agent who sells the property of another. If the price was paid to the mortgagee and the item is later found to be rightfully claimed by another party, the buyer returns to the mortgagee. This is the position of Al-Shafi'i. The basis is that the actual asset of the buyer's property went to the mortgagee unjustly, thus his recourse is against the mortgagee, as if he had received the price directly from him.

Supporting text

Abu Hanifa holds that the recourse is against the trustee, and the trustee may then seek recourse against either the mortgagor or the mortgagee. If the loss of the price occurred while in the trustee's possession, the buyer returns to the mortgagor, and the trustee bears no liability because the buyer entrusted the price to him specifically to deliver to the mortgagee.