What is the legal implication if the pledgor claims his absolute authorization for sale intended for the price to become a substitute pledge?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If the pledgor claims that his absolute authorization meant the price should become a substitute pledge, this claim is disregarded. The absolute authorization is understood to imply a sale that dissolves the pledge. Al-Shafi'i concurs with this understanding.