Is it valid to mortgage items susceptible to spoilage?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
The mortgage (Rahn) of items that spoil quickly is valid, whether they can be preserved by drying, like grapes and fresh dates, or not, like melons and cooked food. If the item can be dried, the mortgagor is responsible for drying it, as this constitutes the expense necessary for its preservation and continued existence, similar to the sustenance required for an animal. If the item cannot be dried, it must be sold, and the debt is settled from its price if the debt is due immediately or will become due before the item spoils. If the debt will not become due before spoilage, the proceeds of the sale replace the item as collateral, irrespective of whether selling the item was stipulated in the mortgage contract or left unrestricted.
Supporting text
The companions of Imam Al-Shafi'i hold that if the item spoils before the debt is due, the mortgagee's stipulation to the mortgagor to sell it and substitute the price as collateral is valid. If no stipulation was made, there are two differing opinions: one holds that it is invalid because selling the collateral before the debt is due is not implied by the mortgage contract and is thus not obligatory nor validly stipulated, similar to stipulating that it shall not be sold. Al-Qadi suggested two interpretations consistent with these two opinions.