SS 48 – Options to Terminate Due to Breach of Trust (Trust-Based Options)

This Standard covers the rules relating to options of buyers to revoke contracts where such options exist by operation of a Shari’ah rule as opposed to stipulation of the parties and which arise from the seller deceiving the buyer by statement or action or grossly overcharging him. It also covers the applications of such options to revoke in the activities of financial institutions.

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

contracts that arise immediately upon the seller deceiving the buyer by statement or conduct or grossly overcharging him in specific circumstances. It does not cover It does not cover Khiyarat al-Tarawwi Khiyarat al-Tarawwi (options to reconsider) or (options to reconsider) or Khiyarat Khiyarat al-Salamah al-Salamah (options to revoke due to incomplete performance) as they have (options to revoke due to incomplete performance) as they have separate Shari’ah Standards dedicated to them. 2. 2. Khiyar Al-Taghrir Khiyar Al-Taghrir (Option to Revoke on Grounds of Deception) (Option to Revoke on Grounds of Deception)