Book of Selling and Commercial

Transactions

Cancellation Options in Transactions

الْخِيَارِ

The Book of Dhihar

Glossary

Cancellation Options (Khiyâr) in Transactions 817

[The Option to Cancel before Physical Separation]
The buyer and seller have the option of cancelling the deal unless they separate physically. 818 If they separate and

[خيار المجلس]
الْبَيِّعَانِ بِالْخِيَارِ مَا لَمْ يَتَفَرَّقَا بِأَبْدَانِهِمَا، فَإِنْ تَفَرَّقَا، وَلَمْ يَتْرُكْ أَحَدُهُمَا الْبَيْعَ، فَقَدْ وَجَبَ الْبَيْعُ.

817. This chapter addresses what we would today call the “return policy”. As we will see, if one is stipulated, it overrides default procedures. If there is none stipulated, then there are default procedures that people may refer to for the settlement of disputes; these are described in this chapter.
The basic default procedure is that after the conclusion of the contract and the physical separation of the two parties, the sale becomes binding, with no recourse for either party unless otherwise stipulated or unless a defect is found in the merchandise, they dispute over the merchandise or the price, or, according to some, if there is a substantial inequity in the price.
We have six main kinds of options for cancellation:

1)    Before the conclusion of the deal and parting physically (khiyâr al-majlis)

2)    If the contract included that as a condition (khiyâr ash-sharṭ)

3)    Due to a defect in the merchandise (khiyâr al-‘ayb)

4)    Due to scams and cheating (khiyâr at-tadlees)

5)    Due to inequity (khiyâr al-ghabn)

6) Due to disagreement over the price or the commodity (khiyâr al-ikhtilâf)

818. The Messenger of Allah (SA) said:

“The two parties to a transaction have the option (of cancelling it) until they (physically) separate.” (Ag – from Ḥakeem ibn Ḥizâm and Ibn ‘Umar)

الْبَيِّعَانِ بِالْخِيَارِ مَا لَمْ يَتَفَرَّقَا.

neither of them has abandoned the sale, then it becomes binding.

[The Option to Cancel in Conditional Transactions]
This is unless it is stipulated that it is optional for both or one of them for a given period. 819 Then they should abide by the stipulation, no matter how long the period of the option, unless they agree to cancel it. 820

[خيار المجلس]
الْبَيِّعَانِ بِالْخِيَارِ مَا لَمْ يَتَفَرَّقَا بِأَبْدَانِهِمَا، فَإِنْ تَفَرَّقَا، وَلَمْ يَتْرُكْ أَحَدُهُمَا الْبَيْعَ، فَقَدْ وَجَبَ الْبَيْعُ.

The option to cancel before physical separation is the position of (A) + (+S).

(-H, -M) did not approve of this. To them, the sale is binding once the contract is finalized. Physical separation is not necessary for the contract to become binding.

The hadith did not necessarily state, without doubt, that separation must be physical, but that is the implied meaning. It is also the understanding of the narrator of the hadith, ‘Abdullâh ibn ‘Umar, who used to walk away a few steps to make the contract binding, as reported by (B, M).
In online transactions, as well as other non-traditional transactions, separation is determined by people’s customs and standards, for:

“Whatever is not expounded by the revealed law (shar‘) should be understood from the people’s customs (‘urf).”

”مَا لَم يُحَدِّده الشَّرعُ يُرجَعُ فيهِ إلى العُرْفِ“.

819. The period must be known to both parties. It also must be specified and may not be unlimited. According to another position within the Ḥanbali madh-hab, agreeing to make the option indefinite is permissible. The first position is the chosen position within the Ḥanbali madh-hab, and it is the position of the vast majority of other scholars and madh-habs.

820. When there is a certain stipulation in the contract, it must be honored, because Allah said:

Cancellation Options in Transactions

( Page : no 73)