Hibah bi shart al-iwad

Definition of "Hibah bi shart al-iwad"

A gift on condition of an exchange. For instance, A gives a house to B on condition that B will give to A a garden belonging to B. Such a transaction partakes of the nature both of gift and sale. It is regarded as a gift in its inception, so that it will not be valid with respect to an undivided property (musha‘ ) and neither party will acquire any right in the thing given to him before delivery of seisin. After delivery of possession by each party the transaction has all the incidents of a sale, so that neither party can revoke his act; the right of preemption will attach to the property and either party can return for defect in the article that he has received.