Khiyar

This entry examines the economic aspect of the concept of khiyar in Islamic transaction law. The concept of “khiyar,” which refers to the right of one or both parties to approve or terminate a contract, is primarily examined in the context of the sales contract within the traditional Fiqh philosophy. The rationale behind this notion is to assure the optimal realization of one’s will while minimizing the potential for deception and harm that may affect any or both persons involved. This article examines the economic side of khiyar, exploring the advantages it offers to the contractual parties and its impact on the economic operation of the contract. This paper elucidates the economic aspects of the idea of khiyar, encompassing its definition, sources, types, economic reasons, and resultant economic repercussions. In addition, an examination was conducted on the primary categories of Khiyar al-Shart, Khiyar al-Majlis, Khiyar al-Rukyah, Khiyar al-Ayb, Khiyar al-Wasf, Khiyar al-Naqd, and Khiyar al-Tayeen. The study’s findings led to the conclusion that khiyar holds a significant position within Islamic law due to its role in safeguarding the intentions of contract parties, promoting the sound formation of contracts, enhancing market efficiency, and mitigating economic risks.