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Lesson 5 of 1530 min

Options in Sales

Options in Sale (Al-Khiyārāt)

📖 The Scene: The Market of Kufa — Era of the Tābi'īn

'Alqama ibn Qays is sitting with his student in a circle of knowledge at the market, when two men arrive disputing...

The Buyer (holding a cloth): O Abū Shibl! I bought this cloth yesterday, and I found a hidden tear in it!

The Seller (defending himself): I didn't know about this defect! I sold you what you saw!

'Alqama (approaching calmly): Easy, my brothers... Did you separate from the sale session or not?

The Buyer: Yes, we separated yesterday.

'Alqama (smiling): Then the session option has expired. But you still have the option of defect!

The Student (asking): O teacher, how many options are there in the Shariah?

'Alqama (looking up): My son, the options are a mercy from the Most Merciful to His servants... The Wise Legislator established them as safety valves for contracts, protecting the oppressed and giving justice to the wronged...

The two men sit calmly, and the student prepares his pen to write...


Definition of Option (Al-Khiyār)

📜 Linguistic and Technical Definition

Linguistically: A noun derived from "choosing," meaning seeking the better of two choices.

Technically: The right of a contracting party to rescind or validate the contract for a legal reason or by mutual agreement.

The Prophet ﷺ said: "The two parties to a sale have the option as long as they have not separated."
— Reported by Al-Bukhārī and Muslim


The Wisdom Behind the Legitimacy of Options

🌳

Wisdoms of the Legitimacy of Options

Reflection and deliberation

Allow time to think before commitment

Remove harm and unfairness

Protect contractor from unexpected losses

Justice between parties

Balance of rights and duties

Prevent disputes

By allowing rescission for valid reason

Mercy towards contractors

Ease transactions and remove hardship


Types of Options — The Complete Tree

🌳

Types of Options in Sale

Options in Sale
Temporal Options
Session Option

Before separation

Stipulation Option

For agreed period

Causal Options
Defect Option

Hidden old defect

Fraud Option

Deception and concealment

Unfairness Option

Excessive price increase

Circumstantial Options
Inspection Option

No prior viewing

Division Option

Partial destruction


First: The Option of Session (Khiyār al-Majlis)

📜 Hadith on the Session Option

The Messenger of Allah ﷺ said: "The two parties to a sale have the option as long as they have not separated. If they are truthful and transparent, their sale will be blessed. If they lie and conceal, the blessing of their sale will be erased."
— Reported by Al-Bukhārī and Muslim, from Hakīm ibn Hizām رضي الله عنه

Definition

The right of each contracting party to rescind the contract as long as they are still in the sale session and have not physically separated.

Conditions and Rules

Conditions of Session Option

1

Be in a financial exchange contract

Sale, lease, exchange, salam...

2

That parties didn't stipulate its waiver

In the contract itself

3

That they don't choose to validate

Before separation

End of the Session Option

CauseExample
Physical separationOne of them leaves
Choosing to validateThey say: "We validate the sale"
Stipulating cancellation"I sell to you without option"

Scholarly Disagreement

📖 Dialogue: Is the Session Option Established?

The Hanafi: In our school, the session option is not established! The contract is binding upon offer and acceptance.

The Shafi'i: In our school, it is established! The proof is explicit: "The two parties have the option as long as they have not separated."

The Maliki: Separation in our view is by speech, not by bodies...

The Hanbali: No, separation is physical as the hadith indicates. This is the position of Imam Ahmad, may Allah have mercy on him.

SchoolRulingEvidence
Shafi'is and Hanbalis✅ EstablishedApparent meaning of hadith
Hanafis❌ Not establishedContract binds upon acceptance
Malikis❌ Not establishedSeparation is verbal

Second: The Option of Stipulation (Khiyār al-Shart)

📜 Hadith on Conditions in Sale

The Prophet ﷺ said: "Muslims are bound by their conditions, except a condition that forbids something lawful or permits something forbidden."
— Reported by At-Tirmidhī and Abū Dāwūd

Definition

The right of rescission that one or both parties stipulate for a known, specified duration.

📖 Practical Application: Buying a Car with Option of Stipulation

The Buyer: I want this car, but I need to consult my father first.

The Seller: No problem, buy it with a three-day option. If you like it, you validate; if not, you return it.

The Buyer: Accepted. I buy this car for one hundred thousand with a three-day option.

Two days later, the buyer returns...

The Buyer: I've decided to validate the sale. The car is excellent, al-hamdulillāh.

The Seller: May Allah bless it for you! Your option ends by your choice to validate.

Conditions of Validity

Validity Conditions for Stipulation Option

1

Known and specified duration

  • ✓ "Three days"
  • ✓ "One week"
  • ✗ "Unspecified duration"
2

According to some scholars: no more than 3 days

3

Majority: more than 3 days allowed as needed


Third: The Option of Defect (Khiyār al-'Ayb)

📜 Hadith on the Prohibition of Hiding Defects

The Prophet ﷺ said: "A Muslim is the brother of a Muslim. It is not permissible for a Muslim to sell his brother something with a defect without revealing it to him."
— Reported by Ibn Mājah and Al-Hākim

Definition

The right of the buyer to rescind the contract or receive compensation if they find a defect in the item that diminishes its value or utility.

Conditions of the Defect Giving Right to Option

🌳

Conditions of Defect Giving Right to Option

Old

Existing before sale or its cause prior

Hidden

Buyer didn't know at contract time

Significant

Reduces value or utility

Buyer's Options When a Defect Is Found

📖 What Does the Buyer Do If They Find a Defect?

The Jurist: If you find a defect in the item, you have three options:

① Keep with Compensation (arsh)
You keep the item and receive the difference between its sound value and its defective value.

② Return and Recover the Price
You return the item and recover your full price.

③ Accept and Waive
You accept the defect without claiming anything — this is kindness.

Extinction of the Defect Option

Cause of ExtinctionExample
Acceptance of defectHe says: "I accept the defect" after learning of it
Defect disappearsThe sick recovers, the problem is fixed
Disposition as ownerHe sold it or gifted it
Impossibility of returnThe item perished in his possession
New defect arisesUnless the seller accepts it back with the defect

Fourth: The Option of Fraud (Khiyār al-Tadlīs)

📜 Hadith on the Musarrāh

The Prophet ﷺ said: "Do not retain milk in the udders of camels and sheep. Whoever buys one has the option for three days: if he wishes, he keeps it, and if he wishes, he returns it along with a sā' of dates."
— Reported by Al-Bukhārī and Muslim

Definition of Fraud

Presenting the item in a non-real appearance to entice the buyer to pay more than its value.

Tasriyah — The Prophetic Example

📖 What is Tasriyah?

A seller comes to the market with a sheep whose milk he has retained in its udders for days...

The Buyer (looking at the full udders): Mā shā' Allāh! This sheep produces a lot of milk! I'll buy it!

He pays and takes it. The next day, he milks it...

The Buyer (astonished): Where's the milk?! Yesterday its udders were full, and today it gives nothing!

The Jurist: This is fraud by tasriyah! The seller retained the milk to give the impression of abundant production. The Prophet ﷺ prohibited it and gave the buyer the option for three days.

Contemporary Examples of Fraud

⚖️

Contemporary Forms of Fraud

Vehicles and Real Estate

Reducing the odometer

Hiding previous accidents

Paint to hide rust

Hiding foundation problems

Hiding water leaks

Devices and Goods

Hiding screen defects

Replacing with poor quality parts

Resetting as new product

Changing expiry dates

Falsifying country of origin


Fifth: The Option of Lesion (Khiyār al-Ghabn)

Definition

Lesion: selling well above the market price, or buying well below it.

📖 Example: Excessive Lesion

The Bedouin (coming from the village): I want to buy a watch as a gift for my son.

The Dishonest Seller: This is a luxury watch, for only one thousand riyals!

The bedouin buys it, then asks his neighbor...

The Neighbor: One thousand riyals?! This watch isn't worth one hundred riyals!

The Bedouin (angry): I've been cheated! What do I do?

The Jurist: You are a naive buyer unaware of prices, and the lesion is excessive exceeding one third. You have the option to rescind or have the seller refund you the difference.

When Is the Lesion Option Established?

ConditionDetail
Excessive lesionExceeds one third of market price (Malikis)
Naive victimUnaware of prices (Hanbalis)
No bargainingDid not negotiate

Sixth: The Option of Sight (Khiyār al-Ru'yah)

Definition

The right of the buyer to rescind the contract if they see the item purchased by description and it does not match their expectations.

📖 Example: Purchase by Description

The Buyer (on the phone): I want to buy a red carpet, 3×4 meters, natural wool.

The Seller: I have what you want. I'll send it to you if you like.

The Buyer: Accepted, send it.

The carpet arrives...

The Buyer (looking): This isn't what I expected! The color is different and I don't like the patterns.

The Jurist: You have the option of sight! Because you bought by description without seeing it before the contract. You can rescind immediately.

Conditions of the Sight Option

  1. The buyer did not see it before the contract
  2. The rescission must be immediate
  3. The item differs from the description or expectations

Seventh: The Option of Transaction Division

Definition

When part of the item perishes before delivery, or part is found to belong to another, or part is defective.

Buyer's Options

🌳

Buyer's Options for Partial Loss

Partial destruction or claim
Full contract rescission

And price refund

Take remainder at pro-rata

Of the price


General Rules on Options

Effects of Rescission

🔄

Effects of Sale Contract Rescission

1

Contract Rescission

2

Good returns to seller

3

Price returns to buyer

4

Connected growth to seller

Fattening, growth

5

Separated growth to buyer

Offspring, fruits

Disposition During the Option Period

Who Has the OptionWho Can Dispose
Buyer onlySeller cannot dispose
Seller onlyBuyer cannot dispose
BothNeither can dispose

Transmission of Option Upon Death

SchoolRuling
The MajorityTransferred to heirs
HanafisExtinguished upon death

📖 From the Stories of the Pious Predecessors: 'Umar and the Defect Option

📖 At the Market of Madinah — Era of the Rightly-Guided Caliphs

'Umar ibn al-Khattāb رضي الله عنه inspects the markets as was his habit, when a man comes complaining...

The Man: O Commander of the Believers! I bought this camel from that man, and when I walked with it, I discovered it limps!

'Umar (summoning the seller): What do you say about this?

The Seller (head bowed): He speaks the truth, O Commander of the Believers... but it's a minor defect, negligible.

'Umar (in a firm voice): Did you know about this defect before the sale?

The Seller: Yes, I knew.

'Umar (angrily): Then why did you hide it?! A Muslim does not hide a defect from his brother, whether small or great!

'Umar turns to the buyer...

'Umar: Take back your money and return his camel. You have the option as long as the defect exists.

Then 'Umar stands in the market addressing the people...

'Umar: O people! Whoever sells something with a defect must reveal it. If they don't, the buyer has the option. Deception is not from the character of Muslims!

The people disperse having learned the lesson...

The Lesson: The defect option is an established right for the buyer, legislated by Allah to protect their wealth from harm. Hiding a defect is forbidden deception that entitles the buyer to rescission.


🎯 Contemporary Cases: Applying the Options

Case 1: The Session Option in Online Shopping

❓ Question

Ahmad is shopping online, he added a product to the cart and paid electronically. Does he have the session option? When does it end?

Answer:

✅ Contemporary scholars differ:

  • First opinion: The electronic "session" is the duration of connection or browsing session. It ends upon completing the order or closing the website.
  • Second opinion: There is no session option in electronic sales, but return policies substitute for it.
  • Preponderant view: Adopting the return policy as a modern alternative to the session option.

Case 2: "No Returns After Purchase" Policy

❓ Question

A store displays: "No returns after purchase." Muhammad buys an item from it, then discovers a defect. Does this condition bind him?

Answer:

⚖️ There is detail:

  • Stipulation option: If the buyer knew this condition and accepted it, he has waived his right to return for mere change of mind.
  • Defect option: It is NOT extinguished by this condition! Because preventing return for defect is injustice, and unjust conditions are void.

Conclusion: He can return for defect even with a "no returns" policy.


Case 3: Manufacturer's Warranty

❓ Question

Khalid bought a phone with a one-year warranty. It broke down after 8 months due to a manufacturing defect. What are his rights?

Answer:

✅ The warranty constitutes a commitment from the seller/manufacturer to repair defects during the specified period:

  • He has the right to free repair
  • Or replacement with a functional device
  • Or return and refund (according to warranty terms)

📌 This is a contemporary application of the time-limited defect option.


Case 4: Discovering Odometer Manipulation

❓ Question

Ali bought a used car, and a week later discovered that the seller reduced the odometer from 200,000 to 80,000. What is his right?

Answer:

✅ This is clear fraud and forbidden deception:

  • He has the right to immediate rescission and full refund
  • Or keep with compensation: receive the difference between the described value and the real value
  • The aggrieved party has the right to legal action for damages

⚠️ The seller is sinful religiously and may face legal prosecution.


Case 5: Buying Under Seller's Pressure

❓ Question

Fahd enters a store, the seller insists: "This offer is limited time! Last piece! You won't find another!" He buys under pressure, then regrets. Can he return?

Answer:

❌ Mere commercial pressure is not coercion that invalidates the contract religiously:

  • If he hasn't left the session ➜ He has the session option
  • If there's a return policy ➜ He has the option according to the duration
  • Otherwise ➜ The contract is binding

📌 The lesson: Don't rush into buying! The Prophet ﷺ said: "Patience is from Allah, and haste is from Satan."


Summary Table: Types of Options

Option TypeCauseDurationEffect
SessionNot separatedUntil separationRescission or validation
StipulationStipulated in contractAgreed durationRescission or validation
DefectHidden old defectUpon knowledgeReturn or compensation
FraudDeception and misrepresentationUpon knowledgeReturn with indemnity
LesionExcessive priceUpon knowledgeRescission or refund of difference
SightPurchase by descriptionImmediate upon seeingRescission
DivisionPartial loss/evictionUpon knowledgeRescission or taking remainder

💡 Pause and Reflect

📜 Hadith on Ease in Trading

The Prophet ﷺ said: "May Allah have mercy on a man who is lenient when he sells, when he buys, and when he seeks payment."
— Reported by Al-Bukhārī

Question for reflection: You bought something and then discovered a minor defect. The seller is a man of modest means, and returning the item would embarrass him and cause him loss. What do you do?

Remember:

  • Options are legal rights to protect contracting parties — use them wisely
  • Forgiveness and tolerance in personal rights are among the greatest virtues
  • The balance between your right and kindness to others is a sign of complete faith
  • "Whoever leaves something for Allah, Allah will replace it with something better"

🔑 Lesson Summary

Summary: Options in Sale

Option = right to rescind or validate for legal reason

Seven types: Session • Stipulation • Defect • Fraud • Unfairness • Inspection • Division

Most important today: Defect option + return policies

Hiding defect = forbidden fraud giving right to option

Modern warranties = application of defect option

Tolerance in trade = believer's ethics


My Lord, increase me in knowledge