Khiyar is an option that is given to one or both of the contracting parties or a third party to reconsider the contract or the terms of the transaction in light of specific factors or occurrences during a specific period of time. In that sense, khiyar has nothing to do with options in their conventional, technical meaning (as a form of derivatives).

Wa’ad (Arabic for promise or promising) refers to an obligation issued by one counterparty, such as a potential purchaser or purchase orderer in murabaha transactions, to another, and whereby the promisor undertakes towards the promisee to proceed with the contract. Shari’a considers a promise binding on the issuer unless an excuse (force majeure) comes forth and prevents fulfillment. In law, a promise is binding if it is pending on a cause and incurring the promisee costs and expenses.

The main differences between khiyar and wa’ad are as follows: