Glossary

Khiyar

An option to cancel or confirm a deal, for example a cooling-off right.

خيارkhiyār

Khiyar is the right of one or both parties to rescind or confirm a contract in defined circumstances: after inspection, after a defect is found, or within an agreed period. AAOIFI treats several forms across Shariah Standards No. 51, 52 and 54, including options to revoke for incomplete performance and cooling-off options. For a cardholder the practical relevance is that consumer cancellation rights are not alien to Islamic contract law; they have a classical name and a body of rules.

Related terms

GhararUncertainty in a contract so severe that neither side really knows what they are agreeing to.MurabahahA sale where the seller tells you what the goods cost and what profit is being added, and you pay later.Wa'dA promise made by one side, which may or may not be legally binding.

Sources

AAOIFI Shariah Standards No. (51), No. (52), No. (54)

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