Khiyars

The term khiyar refers to an option or right of tic buyer & seller to rescind a contract of sale.

There are five Khiyars in a contract which are as follows:

  • Khiyar-e-Shart (Optional condition)

At the time of sale, the buyer or seller can put a condition that either party has an option to rescind the sale within the specified number of days (such as 4 days). This option is called ”Khiyar e shart”.

Specification of the days is necessary for this Khiyar. Within this period, either party has the right to rescind/terminate the sale without any reason. If the buyer puts the condition, it is called Khiyar-e-Mushtari (option of the buyer) and when put by the seller, it is called Khiyar-e- Bai (option of the seller). This Khiyar is nontransferable to the heirs.

  • Khiyar-e -Roiyyat (Option of inspecting goods)

Here the goods can be returned after inspection if they are not up to the specifications. This applies automatically to all contracts. For example, ’A’ buys machinery from ’B’ without seeing. However, ’A’ has the option to return the machinery after inspection.

  • Khiyar-e-Aib (Option of the defect)

Where the goods can be returned if found defective. It is the responsibility of the seller to supply the goods free of defect or point out the defect to the buyer. The seller is not allowed to hide the defect of the goods because it constitutes fraud. In one of the hadiths, Prophet P.B.U.H has stated:

“He is not amongst us who indulges in fraud.”

Therefore, the buyer has the right to return to good in the case where the presence of a deficiency is considered a defect in the market practice and which depreciates the value of the goods. For example, ‘A’ buys batteries from ‘B’. However, ‘A’ has the option to return them to ‘B’ if the batteries are found to be defective or not in working condition.

  • Khiyar-e-Wasf (Option of quality)

This option is available where the seller sells the goods by specifying a certain quality that is absent in the goods. For example, ’A’ buys a car from ‘B’ who has specified automatic transmission in the car. However, when ’A’ uses the car, he finds the transmission to be manual. Therefore, he has the right to return the car to ’B’ in the absence of that specific quality.

  • Khiyar-e-Ghaban (Option of price)

Where the seller sells the goods at a price which is far expensive than the market price and the market price is not known to the buyer, a buyer has the right the return it to the seller. For example, a Parker pen is sold to ’A’ by ’B’ at a price of Rs.500. However, after the sale, ’A’ discovers its market price to be Rs. 250, In this case, “A” the option to return the pen to ‘B’.

Iqala (Recession of Contracts)

Where the parties freely consent to rescind the contract i.e. each party will give back the consideration received by it at the time of execution of the contract.

Neither the buyer nor the seller has the sole right to rescind the contract after the execution of a contract. Often the buyer wants to remind the contract after buying goods. In this case, it is necessary that he gets the consent of the seller. Therefore, this mutual agreement between buyer and seller to rescind the contract is called “Iqala.”

In one of the narrations, Prophet P.B.U.H has stated:

“He who does the Iqala (rescinding of the contract) with a Muslim who is not happy with his transaction, Allah will forgive his sins on the Day of Judgment.”

However, it may be noted that the price of the goods being returned under Iqala will remain unchanged.

Written by: Dr. Muhammad Imran Usmani

DISCLAIMER: Copyrights are reserved by Usmani and Co.

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