Option stipulated Purchase subject Option to rescind Negotiated

Types of Transactions within Islamic Law Within Islamic law in contract to examination a sale due to rescission of the
1. A Valid (Sahih) transaction, this is a transaction which is It is permissible If he wishes he blemish contract
recognised as a correct and valid transaction according to for the buyer and can take it, or The buyer has an A termination of
Sharia. The rules for a Sahih transaction have been the seller return it (the option, if he a business
mentioned in the above chapter. 3 days or less buyer) wishes, he can transaction is
2. An Invalid (Batil) transaction, this is a transaction which (IAH)/fixed time This condition take it for the full called Iqala, this
the Sharia does not recognises and in no circumstance, can a can only apply price, or return it right is given to
What is a Fasid
Batil transaction be binding. when the good However, the both the seller
transaction?
3. An Incorrect (Fasid) transaction, this is a transaction which where brought buyer can bind and the buyer.
A Fasid transaction is
is recognised by Sharia but due to the incorrect methods without seeing into a new sale
such a transaction which
used to attain the transaction it becomes invalid. the commodity at with a lower price
the items sold are lawful
4. A suspended (Mawquf) transaction is a transaction as such the time of for the commodity
(Halal) but the conditions
that when someone sells someone else’s property the transaction with the seller
or preconditions
transaction is suspended until the owner validates or voids
surrounding the sale are
the transaction.
incorrect or not
recognised by Sharia
What is a Batil/invalid sale? To Sell at cost price or with profit
An invalid sale according to Sharia To sell at cost price is called ‘Towliyah’ and this is
Makru
is if one or both commodities of sale valid in Sharia. However, when a person is selling at
1. To spoil the chances for others by raising the bid
are Haram items, or it is such an cost price he should not say what price he
without an intension to buy.
item which cannot have ownership purchased the item for, rather he should say what
2. If a transaction is about to be agreed by 2 parties
According to Sharia the following the item cost him.
and then a 3rd party enters and goes to the seller
are Haram to trade. To sell a commodity for a profit is called ‘Murabaha’
and offers a better price then for the seller to except
1. Alcohol (Khamr) 2. Drugs or any and this is totally permissible within Sharia. To sell at
the 2nd offer will render the transaction as Makru
other intoxications 3. Carrion a profit (Murabaha) is a particular sale which a seller
3. To withhold items when there is a need for them.
(Mayta) except fish 4. Swine agrees with his purchaser to provide him a specific
4. To trade from the Azan of Jumu’ah until the end
(Khinzir) or any part of it commodity with a certain profit added to his cost.
of the Jumu’ah salah