Is it permissible to settle a debt of one hundred (currency units) due immediately, resulting from destruction (of property), with a deferred payment of one hundred (currency units)?
General Chapter
Al-Mughni
Book of Settlement
Primary text
The settlement is impermissible, and the original debt remains immediately due. This is the position held by Al-Shafi'i. The reasoning is that the obligor only owes the immediate value of the destroyed property, which is one hundred due immediately. An immediate debt cannot be deferred by agreement. Furthermore, if this transaction is considered a sale, it constitutes selling a debt for a debt, which is impermissible.
Supporting text
It is permissible according to Ahmad and Abu Hanifa. Their justification is that the settlement is a transaction where the obligor compensates for the destroyed item with a deferred one hundred, which is permissible, akin to selling the destroyed item itself for a deferred price.