Chapter on Assignment (ḥawāla)
An assignment is valid only for a debt that is already established; the establishment of the debt owed by the transferee1 is not required. For the contract to stand, the two debts must correspond in kind, quality, and maturity, while any difference in amount is immaterial. Once the assignment is concluded, liability shifts to the transferee and the assignor is released. The assignor’s consent is indispensable; neither the transferee’s consent nor that of the creditor2 is needed when the transferee is solvent. If the transferee later turns out to be insolvent3 and the creditor had not previously consented, the creditor may return to the assignor for payment.
If someone is assigned the price of a sale—or the price is assigned upon him4—and the sale is subsequently found to be void, the assignment itself is void. Should the sale be rescinded rather than voided, the assignment is unaffected, and either party may execute a fresh assignment.