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The question

What is the ruling on dealings between two companies, where one sold devices to the other in installments at prices higher than the market rate, which led to the purchasing company's loss and drowning in debt, then they informally reconciled, but the creditor company did not fulfill its promise, which led to the debtor company's bankruptcy and accumulation of its debts, and now the debtor company is seeking a solution to relieve its conscience from this debt while not possessing the money?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The fundamental principle in contracts is mutual consent, and a sale is concluded by whatever indicatesرضا (consent). The validity of a sale does not change if the commodity is sold for a price significantly higher than the market price. Gross deception (al-ghabn al-fahish) alone does not establish an option (for rescission) nor necessitate rejection (of the sale). A settlement between two companies is binding, provided it does not permit what is forbidden or forbid what is permissible, and it is permissible by consensus. If the indebted company reaches the point of bankruptcy, the creditors have the right to take all its assets and divide them among themselves, and the company is given respite for the remainder until its affairs become easier.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
76187
Imported
Translation status
Source text, unreviewed
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