Search
Generic filters
Filter by Categories
Accounting
Banking

Islamic Finance




Khiyar Tafarruq al-Safqah


A khiyar (option) which gives the buyer the right, if the object of sale is in different parts (i.e., partitioned), either to void the sale and recover the full price paid, or take the remaining parts after deducting a specific amount from the price corresponding to the defect or damage that struck part of the object. From the standpoint of the Hanbali school of thought (mazhab), this option becomes effective if part of the object of sale perishes or gets damaged before it was taken possession of by the buyer, whether that occurs due to a force majeure event or because of the seller’s mistake or negligence. As such, the option gives the buyer the right to call off the sale on the grounds of its invalidity. Furthermore, Hanbalis refereed to the damage caused by a third party, in which case the buyer has the option to terminate the contract or to proceed with it while holding that party liable for the damage.

Maliki fuqaha opined that this option become effective if the object of sale or part thereof is defective. In the former case, the buyer has the option whether to retain the remaining parts of the object or terminate the contract altogether. In the latter case, if the object of sale is partially defective, the buyer has the right to void the contract, but can’t keep the other parts for himself. That means, the whole contract must be terminated.

The Shafi’is have two distinct views on sale partitioning. The first, and also the most popular view, is that the sale is deemed invalid for any impermissible parts of the object, and valid for the permissible parts. The other view maintains that the contract cannot be partitioned, and therefore the whole contract must be voided.

Finally, the Hanbali mazhab is the opinion that the contract is not terminable if the object of sale consists of items that are measured by volume or weight and part of it gets damaged prior to delivery. In this case, the buyer must take the remaining parts of the object against their corresponding contribution to the price.

Khiyar tafarruq al-safqah (خيار تفرق الصفقة) is an Arabic term that translates as sale partition option.



ABC
The last three decades have witnessed the modern rebirth of Islamic finance both in terms of literature and practice. Islamic banks and ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*