Does the pledge become void if one of the contracting parties becomes insane before possession is taken?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If one of the two parties to the pledge becomes insane or dies before possession, the pledge does not become void because it is a contract tending toward finality (luzum), and thus is not nullified by the insanity or death of one contracting party, similar to a sale under option. The guardian of the insane person takes his place.
Supporting text
If the pledger becomes insane, the guardian must take possession only if possession is beneficial (e.g., if it was a condition in a sale that would be damaged by its dissolution); otherwise, he should not take possession. If the pledgee becomes insane, his guardian takes possession if the pledger agrees, but the pledger cannot be compelled if he refuses.