What is the effect of stipulations that contradict the essential purpose of the pledge contract?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
Stipulations that contradict the requirement of the pledge contract are void (*Fasid*). These include stipulating that the pledge shall not be sold upon debt maturity, that the debt shall not be settled from its sale price, that an item prone to destruction shall not be sold, that the pledge shall be sold for any price, or that it shall only be sold for a price satisfying the pledgor. These are void because they oppose the essential nature of the contract, rendering the main purpose unattainable if these conditions were to be met.
Supporting text
Stipulations such as granting the option to the pledgor, making the contract non-binding upon the pledgor, temporal limitation (*Tawqit*) of the pledge (e.g., a pledge for one day and not the next), keeping the pledge in the pledgor's possession, permitting use by either party, or making the pledge guarantor for the pledgee or the trustee, are also void because they either contradict the contract's requirements or are extraneous to its intended benefit.