Khiyar
خيار
Pronunciation: khee-YAHR
An option to confirm or cancel a sale within a set period or on a set condition.
Definition
A right, built into a sale contract by law or by agreement, to confirm or rescind the deal. The main types are khiyar al-shart (a negotiated cooling-off period), khiyar al-ayb (the right to return defective goods), khiyar al-ru'yah (the right to cancel on seeing goods bought unseen), and khiyar al-majlis (the right to withdraw before the parties separate).
Khiyar is the Islamic basis for return policies, inspection periods, and contingency clauses in home purchases, and it differs from a financial option because it attaches to a real sale rather than being traded on its own.
Related Terms
Bay'بيع
A sale contract - the foundational transaction type in Islamic commercial law.
Arbunعربون
A non-refundable down payment or earnest money to secure a purchase.
Ghararغرر
Excessive uncertainty or ambiguity in a contract - one of the three major prohibitions in Islamic finance.
Musawamahمساومة
A negotiated sale where the seller is not required to disclose the original cost or profit margin.
Hawalahحوالة
Transfer of a debt from one debtor to another, and the basis of informal and formal remittance systems.
Ibra'إبراء
A rebate or waiver: the creditor gives up part of what is owed, typically on early settlement.
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Khiyar (خيار) - An option to confirm or cancel a sale within a set period or on a set condition. A right, built into a sale contract by law or by agreement, to confirm or rescind the deal. The main types are khiyar al-shart (a negotiated cooling-off period), khiyar al-ayb (the right to return defective goods), khiyar al-ru'yah (the right to cancel on seeing goods bought unseen), and khiyar al-majlis (the right to withdraw before the parties separate).
- An option to confirm or cancel a sale within a set period or on a set condition.
- Category: Contracts
- Related: Bay', Arbun, Gharar, Musawamah, Hawalah, Ibra'
- Compare related Shariah-compliant products on HalalWallet
Source: HalalWallet (halalwallet.ca)
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
Editorial Team, HalalWallet
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