What is the ruling on selling property held by another as a trust (Wadi'ah), loan for use ('Ariyah), partnership (Mudarabah), or agency?

Chapter on Selling Assets and Fruits

Al-Mughni

Book of Sales

Book 12 · Issue 3 · Bab 4

Open in Qurani

Primary text

If a person holds property belonging to another as a trust, a loan for use, a partnership asset, or is appointed as an agent concerning it, it is permissible for the owner to sell it to the person holding it or to anyone else. This is because the object is a specific asset capable of delivery, and there is no fear of ownership being voided. This is analogous to property held by the owner. This is the ruling of Abu Hanifa and Al-Shafi'i.