What is the ruling when both the preemptive buyer (Shafi'i) and the subsequent buyer know of the defect before the sale is finalized by preemption?
General Chapter
Al-Mughni
Book of Preemption (Shuf'ah)
Primary text
Neither party has the right to reject the sale or claim compensation ('arsh) because both entered into the transaction with full awareness and consented to the price given the item's condition.
Supporting text
If neither party knew of the defect, the Shafi'i may reject the sale against the subsequent buyer, and the subsequent buyer may reject it against the original seller. If the Shafi'i does not reject it, the subsequent buyer cannot reject it against the seller, based on the ruling for the case where the Shafi'i knew first. If the Shafi'i takes the 'arsh from the subsequent buyer, the subsequent buyer may take it from the original seller. If the Shafi'i takes nothing, the subsequent buyer receives nothing, unless an alternative view is followed, allowing the subsequent buyer to claim 'arsh as previously discussed.