Chapter on the Stipulated Option

The stipulated option (khiyar al-shart) is permissible in sales for both the seller and the buyer. Each of them may retain this option for three days or fewer; any period longer than that is impermissible according to Abu Ḥanīfah (may Allah have mercy on him). Abū Yūsuf and Muḥammad (may Allah have mercy on them) hold that it is permissible so long as a definite period is named.

The seller’s stipulated option keeps the goods within his ownership; therefore, if the buyer takes possession and the goods then perish in his hands, the buyer must compensate the seller for their market value. By contrast, the buyer’s stipulated option does not keep the goods in the seller’s ownership. According to Abu Ḥanīfah, however, the buyer does not acquire ownership during this period, whereas according to the two disciples he does. Consequently, if the goods perish while in the buyer’s possession, they are deemed to have perished for the purchase price; the same ruling applies if a defect appears.

Whoever has been granted the option may, within the agreed period, either rescind the sale or ratify it. If he ratifies it in the absence of the other party, the ratification is valid; but if he rescinds, the rescission is not effective unless the other party is present. Should the holder of the option die, the option lapses and does not pass to his heirs.

If someone sells a slave claiming that he is a baker or a scribe, and the reality proves otherwise, the buyer has a choice: he may either keep the slave for the full agreed price or abandon the purchase.