How is compensation calculated when the item's value is determined monetarily?
General Chapter
Al-Mughni
Book of Usurpation
Primary text
If the item to be compensated by its value belongs to the category of currency, the compensation must be the prevailing currency of the region. If the compensation is of a different category of currency, the value is due in any case. If the item is of the same category but was weighed, compensation is due. If the required value is lower or higher than the prevailing standard, it must be assessed against a different currency to avoid usury (Riba). If the manufacturing involved is permissible, and the value increased due to this craftsmanship, it is permissible to assess its value in its own category because the craftsmanship itself carries value. If jewelry is broken, the diminished value resulting from the breakage must be compensated. This differs from sales contracts because craftsmanship is not exchanged for compensation in contracts, but it is compensable upon destruction. If the craftsmanship is prohibited, such as forbidden vessels or men's jewelry, compensation cannot exceed the item's weight, as the prohibited craftsmanship has no legal value and is considered non-existent.
Supporting text
Some Shafi'i scholars maintain that assessing value in its own category constitutes Riba, similar to sales or deficiency, because the value is taken as a substitute. Ahmad, in one narration, preferred that broken jewelry be repaired, but this is interpreted as permissible upon mutual consent rather than obligatory.