Ethica Institute of Islamic Finance™

What are the different options that may be exercised in a sale?

The different options that may be exercised in a sale are: Khayaar al Shart Khayaar al Shart is an option in a sale’s contract giving one of the two parties a right to cancel the sale within a stipulated time. In case of death, the option is non-transferable to his heirs and the sale is automatically annulled. Khayaar al Rooyat Khayaar al Rooyat is the option of refusal based on which the buyer may decline to accept the goods of a sale because of their non-conformity to specifications. Khayaar al Aib This option may be exercised in case of a defect in the purchased asset. If the buyer finds that the asset is defective in any way, he is within his rights to demand a replacement for it or terminate the sale. Khayaar al Wasf The provision of this option is in reference to the quality of the purchased asset. If the asset fails to meet required quality specifications, the buyer is within his rights to exercise this option and demand a replacement of the asset. Khayaar al Ghaban The provision of this option is in reference to the price of the asset. If the seller sells an asset at a price that is much higher than the market price, the buyer possesses the right to return the asset and terminate the sale.

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