What is the ruling if the pledged asset (Rahn) becomes defective or if grape juice turns into wine before the pledgee takes possession?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If the pledged asset becomes defective or if grape juice turns into wine before the pledgee takes possession, the seller (Pledgor) has the option either to accept the defective item or to void the sale and return the pledge, in the case where the juice fermented into wine. If the defect is known after possession is taken, the ruling is the same. If the seller retains the item despite the defect, he is not entitled to compensation (arsh) for the defect because the pledge was secured only over what was possessed, and the missing or transformed portion was not subject to mandatory delivery, thus no compensation is due for what was never delivered, unlike in a sale transaction.