A khiyar (option) that constitutes a condition stipulated in the contract. This option confers on the parties to the contract the right to proceed with contract by confirming it or to cancel it, all within a pre-agreed period of time. In other words, the parties have the option of studying their respective positions in the contract in order to come out with a final decision of either confirming or rejecting it. This option can be attached to any commutative contract, i.e., a contract that involves the exchange of countervalues, and which is cancellable at any later date. In general, the option duration can vary in length according to the agreement and designation of the two contracting parties at the contract date. During the option duration the buyer has the right to effectuate the deal by paying the price and taking delivery of the underlying object of sale.

This option has a very close relative known as the option of reflection (khiyar al-tarawwi).

Khiyar al-shart is an Arabic term (خيار الشرط) that translates as “option by stipulation” or “condition option“.