All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
The compensation owed to the landowner affected by the company’s infringement is considered a debt of unspecified value against the company. It is impermissible for the landowner to sell this right to another person, even by mutual agreement with the purchaser (the lawyer), due to the following prohibitions stipulated in Islamic Law:
Firstly, selling a debt involves engaging in usury (riba), as it constitutes the exchange of a deferred cash amount for an immediate cash payment. The condition for exchanging cash for cash is immediate possession, as stated in the authentic hadith: “Gold for gold is usury, unless it is exchanged hand to hand.” (Narrated by Bukhari & Muslim)
Secondly, the subject of the sale is unknown, as its amount and value are undetermined. Islamic law requires that the item being sold must be clearly known.
Thirdly, the transaction involves uncertainty (gharar). The purchaser may either profit or incur losses as a result of this agreement, and entering into contracts involving uncertainty is not permitted.
In conclusion, such an agreement is prohibited due to its inclusion of usury, ambiguity, and uncertainty. And Allah the Almighty knows best.
Note by Translator
* In Islam, gharar refers to excessive uncertainty, risk, or speculation, while jahalah refers to ignorance or ambiguity about the object of the contract.
