Arabic (فسخ العقد) for the termination (revocation, dissolution, faskh) of a contract (aqd) unilaterally (by one party to the contract) due to a specific incident or occurrence or an impermissible term rendering it invalid. This represents the act of reversing and removal of all the legal effects of the contract, whether what arose in the past and present time and what would unfold in the future. Faskh also involves termination/ severing of the contractual connection between the two parties to a contract.

Faskh (or precisely, infisakh) may also take place due to an external force majeure that prompts the contracting parties to revoke the contract such as the case where a contract of sale (aqd al-ba’i/ aqd al-bay’) is cancelled upon destruction of the object of sale before delivery (transfer of ownership) or where a contract of partnership (sharakah) is terminated upon the death of one of the partners.

The parties may agree that either one, or both, has/ have the so-called khiyar al-faskh: an option (khiyar) to revoke a contract (aqd) should a party encounter unforeseen hardships and difficulties (that hinder fulfillment of a party’s obligations).