of the transferee; that the debt be firmly established in the debtor’s liability; and that the obligation owed by the transferor and the party to whom it is assigned be identical in kind, species, and in respect of whether it is immediate or deferred. Once these requirements are satisfied, the transferor’s liability is extinguished.
Section. Suretyship (ḍamān) for debts already fixed in the debtor’s liability is valid provided the amount is known. The creditor may seek payment from whomever he wishes—either the guarantor or the principal debtor—so long as the guarantee meets the conditions outlined above. If the guarantor pays, he may recover the amount from the principal debtor, provided that both the guarantee and the payment were executed with the latter’s consent. Suretyship is invalid for an unknown sum or for a liability not yet incurred, except when it is an indemnity for the possible eviction of a sold item.
Section. Personal surety (kafāla bi’l-badan)—undertaking to produce the person of the debtor—is permissible when the obligation owed is a private right.
Section. A partnership is valid only when five conditions are met: (1) the capital consists of ready cash in dirhams or dinars; (2) both partners’ contributions are of the same genus and type; (3) the two capitals are mingled; (4) each partner authorises the other to transact; and (5) profit and loss are distributed in proportion to their respective capitals. Either partner may annul the partnership whenever he wishes, and it is likewise dissolved if one of them dies or if any of its essentials lapses.
Section. Whatever a person may transact on his own he may delegate to an agent, or he may act as an agent for another. Agency is a revocable contract: either party may terminate it at will, and it is dissolved upon the death of either. The agent is a trustee regarding what he receives and spends and is liable only in the case of negligence. He may not buy or sell except under three conditions: first, that he sell at the market price; second, that the price be paid in ready cash of the currency current in the locality; and he may not