#3 – The Option to Cancel a Sale
In the second paragraph of the book on Sale (كتاب البيع), the scholar, Imam Naquib Al Misri, summarises the options of both the buyer and seller when it comes to cancelling the sale. Imam Naquib also expands on the different scenarios such as the number of days the agreement can be cancelled, which party can have the right to cancel and what transactions should have immediate exchange of possessions. We delve further below:
Notes from Ustaz Anwar | English Translation | Arabic Text |
الخيار – Linguistically, it means choice. In sale transactions, this carries a different meaning. There are types of choices, how long is the stipulated duration for a sale transaction to occur.
المجلس – Refers to the sale transaction agreement between the buyer and seller. خيار المجلس – For eg, I buy a handphone from Zaid. As long as Zaid and I are in the same space and have not left the area yet, I have the choice to continue or cancel the agreement. I have the option to change my mind. The School of thought under Imam Shafi’ee proposes that when a buyer turns away, the agreement has become lazim—when I carry out the agreement, I cannot cancel it. This means I cannot return the item I bought, and Zaid cannot take back what he sold. Jaiz – an agreement that can be cancelled, such as akad wakalah (appointing someone for agreement). |
When a sale is effected, both buyer and seller have the option to cancel at the time of the agreement (khiyar al-majlis), meaning the right to nullify the agreement at any time before they (physically) part company, or both waive the right to cancel, or until one of them cancels the sale. (O: The option to cancel at the time of the agreement exists at every sale, and for its duration, the ownership of the articles exchanged is suspended) | وإذا انعقدَ البيعُ ثبتَ لكلٍّ منَ البائعِ والمشتري خيارُ المجلسِ، ما لمْ يتفرقا، أوْ يختارا الإمضاءَ جميعاً، أوْ يفسخْهُ أحدهُما. |
In the Shafi’ee school of thought, the option to cancel a sale transaction cannot exceed three days. For example, I want to buy a new handphone. But I am doubtful and I don’t want to purchase it impulsively, in case it doesn’t suit my needs. So I say to the seller to give me a period of three days to use the phone. I have the option to continue or cancel the transaction. If I do not want to continue, I have to return the item to the seller, and he will give me my money back. | Both the buyer and seller have the right to stipulate an option to cancel period, an interval during which either party may cancel the agreement, of up to three days. (O: provided the days are consecutive. | ولكلٍّ منَ البائعِ والمشتري شرطُ الخيارِفي البيعِ ثلاثةُ أيامٍ فما دونها |
For example, the seller notices the buyer is contemplating whether to purchase. So the seller said “Ok, I will sell it to you and give you three days to decide”. Here, we deduce that the option is given to the buyer.
However, if the seller is contemplating whether to sell, the buyer then gives him the option of three days. |
The option to cancel may be given (depending on what the buyer and seller agree upon) to both parties, or just one of them (and not the other, or they may give the option to a third party, since the need for this might arise. In any case, both buyer and seller must agree to the conditions). | لهما أوْ لأحدهما |
قبض – Ownership occurs when we buy something and have paid for it, and we separate ourselves from the place where the transaction occurred. | But such a period may not be stipulated for transactions in which it is unlawful to part company before taking possession of the commodities exchanged (by one or both parties) | إلا إذا كانَ العقدُ مما يَحْرُمُ فيهِ التفرُّقُ قبلَ القبضِ |
There are some items that we cannot exercise the option to wait for three days; in the case of ribawi items – for example, buying rice, exchanging money – ownership has to occur during the sale transaction. Else, riba al-yad will occur, in which the transaction involves barter exchange of the same commodity in unequal amounts.
We cannot exchange SGD today and collect MYR tomorrow, this is considered as riba an nasiyah, which is the addition of an extra amount to an originally transacted sum. For non-ribawi items, the option to wait for three days is allowed. Like buying handphones, chairs, etc. |
as is the case in exchanging the kinds of foodstuffs and moneys in which usurious gain (riba) is present, or in buying in advance (salam) | كما في الربا والسَّلَم |
Conclusion
In conclusion, the document provides a detailed exploration of the concepts related to Islamic transactions, particularly focusing on the rules governing the option to cancel a sale (Khiyar) and the stipulations surrounding it within the Shafi’i school of thought. It emphasizes the importance of mutual consent and the conditions under which a sale can be reversed, ensuring fairness and transparency in Islamic commercial dealings. These principles highlight the intricate balance between buyer and seller rights, aiming to uphold justice in financial transactions according to Islamic jurisprudence.
Source of Recording: https://www.spreaker.com/episode/episode-182-bab-jual-beli-khiyar-majlis–52253673
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Written by Maryam Binte Aziz and Vetted by Ustaz Anwar Hussain.
Umdatus Salik #1 : The Concept of Sale in Islam & The Spoken Offer and Acceptance