What is the questioner legally entitled to from the offers presented by the company director regarding his car, which was sold for 10,500 dinars, and its price was not transferred to the agreed-upon investment project, given his desire to obtain a new car with the same specifications?
The agreement reached between the questioner and the company manager, to make the unpaid price of the car a debt owed by the company, serving as capital for Mudarabah (profit-sharing investment), is a void agreement. Capital in Mudarabah cannot be a debt, due to the possibility of the debtor's insolvency. This arrangement is akin to a trick to achieve an increase on the principal of the debt, and it is considered usury (riba). Therefore, the original agreement is invalid.
As for the offer made by the company manager, which is to exchange the debt (money) for a car whose value exceeds the value of the debt, this is Islamically permissible. The creditor can accept another item in exchange for his debt, even if its value is greater than the debt, provided that possession (qabd) takes place.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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