A lender says 'throw me my money and be free.' The borrower throws it but it burns before reaching the lender. Who bears the loss?
When the lender instructed the borrower to throw the money, the lender accepted the method. The borrower performed as instructed, so the loss falls on the lender.
Question 2
Reuven (borrower) discovers his debt was redirected to Levi via a three-party transfer, but Reuven was insolvent at the time. What can Levi do?
A three-party transfer (ha'amada) is premised on the debtor's solvency. If Reuven was insolvent (and Levi didn't know), Levi was deceived and can reverse the transfer, demanding Shimon pay him instead.
Question 3
An employer tells a storekeeper 'pay my worker a sela from your stock and I'll reimburse you.' The worker says he never received it. Who swears?
Both the worker and the storekeeper swear in each other's presence — so they'll be embarrassed if lying. Each may then collect from the employer. The employer pays twice because he gave conflicting instructions.
Question 4
A receipt found on the back of a promissory note in the lender's possession (unsigned by witnesses) — what is its status?
A receipt written on the note itself — even without witnesses and even from the lender's possession — is accepted as valid. The rationale: the lender would not write on the note itself unless it was actually paid.
Question 5
A person finds a promissory note among his papers and doesn't know if it was paid or not. What does the Rambam say to do?
The Rambam rules that a note of unknown status should simply be held — 'until Eliyahu comes,' meaning until the matter can be definitively resolved. Neither collect nor destroy it.