Is a condition allowing the custodian of a pledged item (*Rahn*) to sell it upon the debt's maturity valid?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If the pledge is with a custodian and the pledgor and pledgee stipulate that the custodian may sell it upon the debt's maturity, the stipulation and the subsequent sale are valid. This is the view held by Abu Hanifa, Malik, and Al-Shafi'i. If the pledgor revokes the custodian's authority to sell, the revocation is valid, and the custodian loses the right to sell. This is the position of Al-Shafi'i. The initial authorization is deemed a revocable agency (*wakalah ja'izah*) and is not required to be maintained, similar to other agencies. The fact that it relates to the rights of the pledge does not make it irrevocable, just as a condition for a pledge within a sale does not render the sale irrevocable. Furthermore, if the pledgor dies after giving permission, the agency is terminated.
Supporting text
Abu Hanifa and Malik disagree regarding the revocation, stating that the pledgor cannot revoke the authority because the agency has become tied to the rights of the pledge, and the pledgor cannot terminate it like other rights. Ibn Abi Musa suggests a similar view, noting that Ahmad prohibited such maneuvering in other contexts, and this opens the door for the pledgor to make this stipulation to induce the pledgee, only to revoke it later. However, the first view is the explicit one, as agency is generally revocable. If the pledgee revokes the custodian, the custodian is not dismissed because the custodian is the agent of the pledgor (as the pledge is his property), and his authorization alone is sufficient, though he cannot sell without the pledgee's consent.