What is the legal standing of a pledge on the sold item if it is provided after the sale contract but before the sale becomes binding?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If the pledge is provided after the sale but before the sale becomes binding (lazim), its validity depends on whether disposal of the sold item is permissible during that period. If disposal is permitted, then pledging it is permitted. If disposal is not permitted, then pledging it is not permitted, as pledging is a form of disposal, akin to selling.