What is the ruling if the pledged item perishes while in the possession of the pledgee, and it is later discovered that it had a pre-existing defect?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If the pledged item perishes while in the pledgee's possession, and it is subsequently discovered that it was defective before perishing, the pledgor does not have the right to dissolve the underlying sale contract because returning the item has become impossible.
Supporting text
Although the pledged item is generally not guaranteed (as evidenced by the fact that its subsequent defect does not prevent returning it), its value is guaranteed because the contract was established based on the collateral itself, not the pledgee's ownership. Since the pledgee did not return the item in its defective state, granting him compensation would obligate the pledgor to something beyond what he stipulated in his contract.