CHAPTER ON THE RIGHT OF CANCELLATION AND OTHER MATTERS
337—Once a contract has been concluded, it becomes binding unless there is a ground1 recognized by Islamic law:
338—One such ground is the right to cancel while the contracting parties remain together. The Prophet—may Allah bless him and grant him peace—said: “When two men enter into a sale, each retains the right to cancel so long as they have not separated and remain together, unless one gives the other the option. If one gives the other the option, they conclude the sale on that basis, and neither withdraws from it, the sale becomes binding.” Agreed upon2.
339—Another is the stipulated right of cancellation, when this right is stipulated for both parties or either one of them for a specified period3.