Definition and Scope
The standard covers buyer options to revoke when the seller fails to deliver as promised. It covers three situations: 1. Khiyar al-Ayb (Hidden Defect) — goods are defective and the buyer didn't know 2. Khiyar al-Tark (Deal Fragmentation) — part of a package deal is missing 3. Khiyar al-Wasf (Breach of Description) — goods don't meet stated specifications the Revocation Options standard does NOT cover deceptive practices or cooling-off options — those have separate standards.
1. Khiyar al-Ayb (Option to Revoke Due to Hidden Defect)
Definition: The option of a buyer to revoke or continue a contract when a hidden defect appears in the goods after contract, where the buyer didn't notice the defect at the time of contract.
Five conditions must all be met: 1. A MATERIAL defect must appear — one that makes the item unfit for purpose or significantly diminishes value 2. The defect must be repairable only at COST (if it's easy/free to repair, no option) 3. The buyer must be UNAWARE of the defect at contract time (regardless of seller's knowledge) 4. The contract must NOT contain a "as-is" clause excluding seller liability (Bay' al-Bara'ah) 5. The buyer must NOT have caused the defect
Important exception: In Ijarah (lease) and Istisna'a (manufacturing) contracts, the seller CANNOT exclude liability for defect — "as-is" clauses are prohibited.
Consequences of Defect Option
The buyer's choices: • Revoke the contract and return the item, OR • Keep the item and seek compensation (Arsh) for the defect If the buyer has taken delivery, revocation requires mutual consent or court order. If the buyer discovers the defect BEFORE delivery, he can unilaterally revoke by giving notice to the seller.
Conditions for return: • Return must NOT fragment a package deal (unless seller agrees) • Item must not be damaged/destroyed in buyer's possession (if damaged, only Arsh available) • Nothing physically separate (like buildings on land) can be added — but separate income (rent, dividends) doesn't prevent return • If return is impossible, buyer gets Arsh instead
When the option lapses: • The defect is cured before return or Arsh payment • Buyer expressly waives the option • Buyer expressly accepts the defective item • Buyer's conduct implies acceptance (continued use, unreasonable delay, disposal, exploitation) • Buyer destroys the item
2. Khiyar al-Tark (Option to Revoke Due to Deal Fragmentation)
Definition: The right of a buyer to revoke a contract when a package deal is no longer complete — part of what was promised is missing.
Types of fragmentation: • A seller bundles his own property WITH another's property without consent • A partner sells partnership property without co-partner consent • It transpires part of the sold items belong to a third party • Part of the items are destroyed before delivery • In Salam contracts, part of the goods don't arrive on the delivery date
Consequences: The buyer may either revoke the entire deal OR accept what remains and pay the proportional price. The buyer gets NO compensation unless the remaining items have defects.
3. Khiyar al-Wasf (Option to Revoke Due to Breach of Description)
Definition: The right of a buyer to revoke when the goods don't meet conditions stipulated in the contract — either explicitly stated or implicitly understood (e.g., a car promised to be "automatic" or a phone promised to be "new").
Valid descriptions must meet four requirements: 1. Be permissible by Shari'ah 2. Be specific and free from ambiguity (Gharar) 3. Relate to the buyer's purpose OR be basis for higher price/quality 4. Be breached at or before delivery — not a post-delivery change