A special case of khiyar al-shart (condition option), which comes into effect if the parties to the contract of sale (aqd al-ba’i) with deferred payment agree that the contract shall be void unless the price is paid within a period of three days at the longest. Hence, the option is of “al-naqd”, where al-naqd translates into “cash” or “cash payment”.

The period of three days is typically stipulated in khiyar al-shart, and the stipulation of any longer period (such as four day or more) will render the contract invalid, as such stipulation contradicts the very nature of the concept of cash payment. However, some fuqaha didn’t stick to the three-day period and deemed any loner interval as valid provided that the contracting parties mutually agree its length, taking into account their best interests (maslaha).

khiyar al-naqd is an Arabic term that translates into “cash price option“.