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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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The ruling on the lender saying to the borrower: If you die [i.e., if the borrower dies], you are absolved

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Question : And if he says, “If you die, you are absolved,” it is not valid, because it is an absolution conditioned on a condition.

Answer : That it is valid, and that an absolution conditioned on a condition is not a problem. So if a person had a debt in the liability of a man, and he said to them, “If you do such-and-such, I have absolved you,” there is no harm, and what is the obstacle? It is a condition that does not make a forbidden thing lawful, nor does it make a lawful thing forbidden, nor does it lead to riba (usury or interest) or injustice. So the correct view is that an absolution conditioned on a condition is permissible, and there is no harm in it. Yes.
Source قناة «فضيلة الشيخ محمد بن صالح العثيمين»، [4386] حكم قول المقرض للمقترض: إن متَ [أي مات المقترض) فأنت في حل - تعليقات على الكافي لابن عثيمين — youtube.com

The Arabic text is a machine transcription of the audio recording.

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