Is it permissible to dispose of contracting funds for purposes other than those for which they were designated if the owner of the funds is not affected by that and the contractor owns many assets?
The ruling on disposing of money depends on the nature of the contract: - If it is a lease contract or a manufacturing contract (Istisna'): You may dispose of the money because it has become your property, and you must fulfill the work or provide the house according to the agreed-upon specifications. - If you are their agent to supervise the construction for a known wage: You are not permitted to dispose of the money for your own benefit; an agent acts within the limits of the agency and in the best interest of his principal.
Conditions for an agent to be entitled to remuneration: 1. That the work entrusted to him be known. 2. That the remuneration be of a known amount. 3. That the remuneration not be a part of the entrusted matter, according to some jurists. 4. That the agent carries out the agency properly.
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