AAOIFI Shariah Standards

Options to Terminate Due to Breach of Trust (Trust-Based Options): Appendix B - The Shariah Basis for the Standard

  • Options to revoke sales on grounds of breach of trust are either permissible in Shariah by default or by stipulation in the contract.
  •  The basis for permissibility is that sale contracts should by default be free from defect.
  •  If then it is discovered that this was not the case and there was deception, verbally or by conduct or there was price gouging, the buyer has the right to revoke the contract.

« Appendix A - Brief History of the Preparation of the Standard Unilateral and Bilateral Promise: Scope & Shariah Ruling »

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