Section 01 / 10

Module Introduction — Beyond the Core: Options, Waqf, and Islamic Social Finance

10 min

The Three Pillars of Domain G

PillarStandardsPurposeMaqasid Focus
Khiyarat (Options)the Trust-Based Options standard, 51, 52, 54Buyer protections and contract flexibilityJustice, informed consent, prevention of exploitation
Contingent Transactionsthe Contingent Incidents standard, 58Handling unforeseen events and reversibilityCertainty, ease of transaction, preservation of rights
Islamic Social Financethe Zakah standard, 60Wealth redistribution and community endowmentWealth preservation, social solidarity, community welfare

The Architecture of Options (Khiyarat)

In Islamic contract law, Khiyarat (الخيارات) are conditional rights allowing parties to continue or revoke a contract under specified conditions. These are NOT mere exit clauses — they embody the Quranic principle of informed consent ("There is no sin upon you if you make a mistake, but [there is] upon what your hearts intentionally seek," Q 33:5). The four major options are:

Option TypeStandardTriggerHolderDuration
Khiyar al-Taghrir (Verbal Deception)the Trust-Based Options standardSeller falsely describes goodsBuyerCustomary period
Khiyar al-Ayb (Defect)the Revocation Options standardHidden defect discoveredBuyerAfter delivery + customary period
Khiyar al-Tarawwi (Cooling-Off)the Cooling-Off Options standardParties need time to reconsiderOne or both partiesStipulated period
Khiyar al-Ishlah (Revocation)the Contract Revocation standardCooling-off option exercisedOption holderUpon revocation notice

Key Terms You Must Know

Khiyar (الخيار): An option; a conditional right to continue or revoke a contract. Taghrir (تغرير): Deception; misleading the buyer into thinking the goods are better than they actually are. Tadlis (تدليس): Deceptive conduct; physical misrepresentation (e.g., painting an old car to look new). Ghabn (غبن): Price gouging; charging a trusting buyer far above market price. Arsh (أرش): Compensation for defect; a price rebate when goods are defective. Waqf (وقف): Endowment; permanently dedicating assets for charitable/social purposes. Zakah (زكاة): Obligatory alms; wealth purification through redistribution to the poor. Repurchase (إعادة الشراء): Buyback agreement; a contract allowing the seller to repurchase goods.