Definition and Scope
The standard covers buyer options to revoke when the seller fails to deliver as promised. It covers three situations:
- Khiyar al-Ayb (Hidden Defect): goods are defective and the buyer did not know.
- Khiyar al-Tark (Deal Fragmentation): part of a package deal is missing.
- Khiyar al-Wasf (Breach of Description): goods do not 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:
- A material defect must appear, meaning one that makes the item unfit for purpose or significantly diminishes value.
- The defect must be repairable only at cost. If repair is easy or free, no option arises.
- The buyer must be unaware of the defect at contract time, regardless of the seller's knowledge.
- The contract must not contain an "as-is" clause excluding seller liability (Bay' al-Bara'ah).
- 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.
- 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 the seller agrees.
- The item must not be damaged or destroyed in the buyer's possession. If damaged, only Arsh is available.
- Nothing physically separate, such as buildings on land, can be added. Separate income such as rent or dividends does not prevent return.
- If return is impossible, the buyer gets Arsh instead.
When the option lapses:
- The defect is cured before return or Arsh payment.
- The buyer expressly waives the option.
- The buyer expressly accepts the defective item.
- The buyer's conduct implies acceptance, such as continued use, unreasonable delay, disposal, or exploitation.
- The 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 person's property without consent.
- A partner sells partnership property without co-partner consent.
- It transpires that 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 do not 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:
- They must be permissible by Shari'ah.
- They must be specific and free from ambiguity (Gharar).
- They must relate to the buyer's purpose or be the basis for higher price or quality.
- They must be breached at or before delivery, not by a post-delivery change.