The answer: The second. He must say this, so that he is truthful in saying: “I bought it for one hundred, then twenty was refunded to me because of the defect.”

His statement, “or compensation for an injury to it is added to its cost price, and this must be disclosed”: An example is a man who buys a slave for one hundred, then the slave is injured by having one of his limbs cut off or something similar. The compensation due for the injury inflicted upon the slave is fifty, and he then sells him at cost price. If he sells him at cost price while he is defective, he must say: “I bought him for one hundred, then he was injured, for which fifty was paid,” thus making the actual situation clear.

His statement, “If that occurs,” refers to an increase or reduction, not to an injury.

His statement, “if that occurs after the sale has become binding, it is not added to it”: This is because the sale was concluded on the original price. As for compensation received for a defect or compensation received for an injury, he must disclose it, even if it was received after the sale became binding. However, for an increase or reduction in the price to require disclosure, it must have occurred before the sale became binding. If it occurs after the sale has become binding, disclosure is not required.

Therefore, if the original seller, who sold it to him for one hundred, releases the buyer from the price after the sale has been concluded and they have parted, and the buyer then sells it at cost price, must he say: “I bought it for one hundred, and he released me from it?”

The answer: He is not required to do so, because this occurred after the sale had become binding. Hence he said: “If that occurs after the sale has become binding, it is not added to it.”