Does the pledgee's knowledge of the pledgor's status (apostate/criminal) affect their right to annul the contract?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If the pledgee knew the status of the pledgor (apostate/criminal) at the time of the pledge, there is no option for them to annul the contract, as they entered the transaction with full awareness, similar to a buyer aware of a defect. If the pledgee learned of the status only after the apostate converted to Islam or the criminal was ransomed, there is likewise no right to annulment because the defect (*'ayb*) has been removed, analogous to the removal of a defect in a sold item.
Supporting text
If the pledgee learned of the status before the apostate converted or the criminal was ransomed, the pledgee has the right to return the pledged item and rescind the sale if rescission was stipulated in the contract. This is because the stipulation required the item to be sound, and its delivery in a defective state grants the right to annulment, similar to a sale contract. If the pledgee chooses to keep the item, they are not entitled to compensation (*arsh*) or anything else because if the entire pledged item perished before possession, they would not be entitled to a replacement, making entitlement for partial loss even less likely.