AAOIFI Shariah Standards

Options to Revoke Contracts Due to Incomplete Performance: Appendix B - The Shariah Basis for the Standard

Option to Reconsider Due to Defect


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The basis for permissibility of the option to reconsider due to defect is the Hadith narrated by ’A`ishah (may Allah be pleased with her) that a man purchased a young serf, and then set him to work, then he found him to be “flawed” or “defective”, so he returned him back (to the seller) on the grounds of the defect. Thereupon, the Prophet (peace be upon him) said: “No yield without risk taking” and in another narration: “No gain without risk taking”. Also, there is the Hadith on a sheep whose udder is tied up in order to look like a one full with milk. If the defect, lack of milk, is unveiled, then the buyer shall have the option either to keep it or to return it along with a Sa’ of dates. All Schools of Fiqh (Madhahib) embraced this option, and that the key principle in the contracts of sale is freedom from defects.

« Appendix A - Brief History of the Preparation of the Standard Options to Reconsider (Cooling-Off Options, Either-Or Options, and Options to Revoke Due to Non-Payment): Scope & Shariah Ruling »


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