Is a 'Talji'ah' (simulated/feigned) sale valid?
Chapter on Selling the Musarrah (Animal with milk retained in udder)
Al-Mughni
Book of Sales
Primary text
The simulated sale (bay' al-talji'ah) is void. This position is held by Abu Yusuf and Muhammad. The basis for invalidity is that the parties did not intend the actual sale; therefore, it is invalid, similar to jesting transactions. The simulated sale occurs when someone fears the Sultan or another authority will seize their property and colludes with a person to make it appear as if the property was sold to protect it, without intending a true sale.
Supporting text
Abu Hanifa and Al-Shafi'i hold that the simulated sale is valid because it was concluded with all the necessary pillars and conditions, devoid of any vitiating clause, similar to when parties agree on a corrupt condition but then contract the sale without that condition.