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The basis in the Sunnah for the rule that a contract is dissolved when property sold or leased perishes before possession can be taken is the report narrated by Muslim in his Sahīh from Jābir ibn ʿAbd Allāh, who said: The Messenger of Allah (peace and blessings be upon him) said:

“If you sell fruit to your brother and a calamity befalls it, it is not lawful for you to take anything from him. On what grounds would you take your brother’s wealth without right?”

Another version states:

“The Messenger of Allah (peace and blessings be upon him) ordered that payment be waived for fruit lost to calamities.”

In this authentic hadith, the Prophet (peace and blessings be upon him) made clear that if someone sells fruit and a calamity befalls it, he may not lawfully take any payment from the buyer. He then explained the reason and underlying rationale, saying:

“On what grounds would you take your brother’s wealth without right?”

This points to Allah’s prohibition in His Book against consuming wealth wrongfully. When the property sold perishes before possession can be taken, taking any of the purchase price amounts to taking the buyer’s wealth without right—indeed, wrongfully. Allah has forbidden consuming wealth wrongfully because it is an injustice contrary to the justice upon which the heavens and the earth stand. This hadith is a foundation for this subject.