---
title: "What is Khiyar (option to revoke or confirm)? | IslamicOpenFinance™"
description: "A right of one or both parties to confirm or revoke a contract, for example because of a defect, a stipulated condition or a cooling-off period."
url: https://islamicopenfinance.com/glossary/khiyar/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Shariah fundamentals](https://islamicopenfinance.com/glossary/#fundamentals)

Shariah fundamentals

# Khiyar (option to revoke or confirm)

A right of one or both parties to confirm or revoke a contract, for example because of a defect, a stipulated condition or a cooling-off period.

Khiyar is an option that gives a party the right to confirm or revoke a contract. AAOIFI has separate standards on options to revoke contracts because of incomplete performance and on options to reconsider, which cover cooling-off options, either-or options and options to revoke for non-payment. Its murabaha standard also deals with defects, allowing a seller to sell on an as-is basis while the buyer otherwise keeps the right to reject a defective asset. Options matter for systems because a contract subject to an open option is not yet final for the party who holds it.

## Sources

- [AAOIFI Shari'ah Standards, English edition (full text, PDF): Shari'ah Standards No. 51, Options to Revoke Contracts Due to Incomplete Performance, and No. 52, Options to Reconsider](https://aaoifi.com/wp-content/uploads/2017/12/Shariaa-Standards-ENG.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Murabaha** A sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.](https://islamicopenfinance.com/glossary/murabaha/) [**Urbun (earnest money)** An earnest payment made at signing: part of the price if the sale completes, kept by the seller if the buyer withdraws.](https://islamicopenfinance.com/glossary/urbun/) [**Gharar** Excessive uncertainty in a contract, about the object, price, quantity or delivery, which can make the contract invalid.](https://islamicopenfinance.com/glossary/gharar/) [**Bay al-bara'ah (sale on an as-is basis)** A sale in which the seller is released from liability for some or all defects in the goods, by agreement with the buyer.](https://islamicopenfinance.com/glossary/bay-al-baraah/)

**Shariah fundamentals**

1. [Riba](https://islamicopenfinance.com/glossary/riba/)
2. [Gharar](https://islamicopenfinance.com/glossary/gharar/)
3. [Maysir](https://islamicopenfinance.com/glossary/maysir/)
4. [Shariah](https://islamicopenfinance.com/glossary/shariah/)
5. [Fiqh al-muamalat](https://islamicopenfinance.com/glossary/fiqh-al-muamalat/)
6. [Maqasid al-Shariah](https://islamicopenfinance.com/glossary/maqasid-al-shariah/)
7. [Riba al-nasiah](https://islamicopenfinance.com/glossary/riba-al-nasiah/)
8. [Riba al-fadl](https://islamicopenfinance.com/glossary/riba-al-fadl/)

[All 221 terms](https://islamicopenfinance.com/glossary/)