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Islamic Finance

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An option (khiyar/ khayar) which entitles the buyer (in a contract of sale, aqd al-ba’i) to proceed with the contract by purchasing one item or more out of a number of items specified in the contract during a specific period of time as stipulated by the parties. If the buyer takes delivery of all the items, then only selects a few number of them, he/ she will be liable to pay for the selected items while holding the remaining ones on trust.

This option (known in Arabic as خيار التعيين) belongs to the broader category of options to reconsider (khiayrat al-tarawwi).

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