Module Introduction — Beyond the Core: Options, Waqf, and Islamic Social Finance | Other Compliant Contracts

The Three Pillars of Domain G

Pillar	Standards	Purpose	Maqasid Focus
Khiyarat (Options)	the Trust-Based Options standard; the Revocation Options standard; the Cooling-Off Options standard; the Contract Revocation standard	Buyer protections and contract flexibility	Justice, informed consent, prevention of exploitation
Contingent Transactions	the Contingent Incidents standard; the Repurchase Agreement standard	Handling unforeseen events and reversibility	Certainty, ease of transaction, preservation of rights
Islamic Social Finance	the Zakah standard; the Waqf standard	Wealth redistribution and community endowment	Wealth 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 Type	Standard	Trigger	Holder	Duration
Khiyar al-Taghrir (Verbal Deception)	the Trust-Based Options standard	Seller falsely describes goods	Buyer	Customary period
Khiyar al-Ayb (Defect)	the Revocation Options standard	Hidden defect discovered	Buyer	After delivery + customary period
Khiyar al-Tarawwi (Cooling-Off)	the Cooling-Off Options standard	Parties need time to reconsider	One or both parties	Stipulated period
Khiyar al-Ishlah (Revocation)	the Contract Revocation standard	Cooling-off option exercised	Option holder	Upon revocation notice

Key Terms You Must Know

Term	Meaning
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, such as 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 or 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.