Written by: Fatāwā of the Saudi Fatwa Committee
Scholars have differed on the permissibility of a sale with an option to cancel (اختیار) for a fixed period, especially if that period exceeds three days. One group of scholars permits it, while others prohibit it. However, the stronger and more correct view is that it is permissible, based on the statement of the Prophet ﷺ:
«المسلمون على شروطهم إلا شرطا حرّم حلالا أو أحلّ حراما»
"Muslims are bound by their conditions, except for a condition that makes something unlawful lawful, or something lawful unlawful."
[Sunan Abī Dāwūd, Hadith no. 5349]
There are additional evidences supporting this view. All scholars who allow such a condition have stressed that the purpose should be legitimate — for example, if the seller is inclined to sell and the buyer is inclined to buy, but the option is kept for reasons such as uncertainty about the product, consideration of price, or other reasonable matters.
If the purpose of the sale is for the buyer to benefit from the product's income, and the seller benefits from the price, and both parties intend that once the seller is able to repay the amount, the transaction will be reversed — then this is not permissible, as it is essentially Riba. It becomes a loan with an added benefit, and it is unanimously prohibited:
"Every loan that brings a benefit is Riba."
Undoubtedly, in such scenarios, the buyer intends to benefit from the product until the price is returned, so that the profit of the item is not wasted while it is in the seller’s possession. This is a clear form of legal trickery (ḥīlah) to make interest appear permissible, and this is invalid, as the Prophet ﷺ said:
«لا ترتكبوا ما ارتكبت اليهود فتستحلوا محارم الله بأدنى الحيل»
"Do not commit what the Jews committed, seeking to make Allah’s prohibitions lawful through trivial stratagems."
[Ḍaʿīf: Ghāyat al-Marām, Hadith no. 11]
This narration was reported with a good chain by Abū ʿAbd Allāh Ibn Baṭṭah. A similar meaning is found in the Sahihayn from Jābir (رضي الله عنه):
«قاتل الله اليهود لما حرّم الله عليهم الشحوم جملوها ثم باعوها فأكلوا ثمنها»
"May Allah curse the Jews! When Allah forbade them fat, they melted it down, sold it, and consumed its price."
[Ṣaḥīḥ al-Bukhārī, Hadith no. 2236 | Ṣaḥīḥ Muslim 1581/71]
A group of scholars has explicitly condemned such practices and declared them impermissible. Among them is Shaykh ʿAllāmah ʿAbd al-Raḥmān ibn Abī ʿUmar al-Ḥanbalī in al-Sharḥ al-Kabīr [80/4]:
“When the condition of option is imposed as a trick to gain benefit from a loan — so the creditor benefits from the duration by taking profit or income from the sold item — and then cancels the sale upon returning the price, then this is not a valid option. This is trickery, and during the option period, the price recipient must not benefit from or dispose of the product.”
Al-Athram reported:
“I heard from Abū ʿAbd Allāh (Imām Aḥmad). He was asked about a man who buys land from another and says: ‘I have the option (to cancel) for such and such a period.’ He said: ‘It is permissible as long as it is not a trick — for example, if someone gives a loan and takes land in return, intending to benefit from it while imposing an option clause to earn profit. If there is no such intention, then there is no harm.’”
Abū ʿAbd Allāh (Imām Aḥmad) was also asked:
“If a person, out of goodwill, wishes to give another some wealth as a loan but fears he may flee, so he buys something from him and includes an option clause — while not intending any trick — is it permissible?” He replied: “Yes, it is allowed, but if the seller dies, the option is terminated and not passed to the heirs.”
Thus, the permissibility ascribed to Imām Aḥmad applies only when there is no benefit derived from the item unless it is destroyed, or the buyer refrains from using the item during the option period, so it does not fall into the category of a profit-generating loan.
Hence, a sale contract is valid only if it is free from the intention of lending with benefit. Here, Abū ʿAbd Allāh refers to Imām Aḥmad ibn Ḥanbal رحمه الله.
One sign of such trickery (ḥīlah) is that the seller sells the item for less than its real price, e.g., selling for 50 what was originally bought for 100. If it were a genuine sale, would someone sell something worth 100 for 50? This clearly indicates that the transaction is not a sale, but rather a loan disguised as a sale.
Wa-Allāhu Aʿlam
[Ibn Bāz: Majmūʿ al-Fatāwā wa al-Maqālāt: 125/19]
✦ Authority (Option) in Sales with a Fixed Period
Scholars have differed on the permissibility of a sale with an option to cancel (اختیار) for a fixed period, especially if that period exceeds three days. One group of scholars permits it, while others prohibit it. However, the stronger and more correct view is that it is permissible, based on the statement of the Prophet ﷺ:
«المسلمون على شروطهم إلا شرطا حرّم حلالا أو أحلّ حراما»
"Muslims are bound by their conditions, except for a condition that makes something unlawful lawful, or something lawful unlawful."
[Sunan Abī Dāwūd, Hadith no. 5349]
There are additional evidences supporting this view. All scholars who allow such a condition have stressed that the purpose should be legitimate — for example, if the seller is inclined to sell and the buyer is inclined to buy, but the option is kept for reasons such as uncertainty about the product, consideration of price, or other reasonable matters.
✦ When Conditional Sales Turn into Riba (Usury)
If the purpose of the sale is for the buyer to benefit from the product's income, and the seller benefits from the price, and both parties intend that once the seller is able to repay the amount, the transaction will be reversed — then this is not permissible, as it is essentially Riba. It becomes a loan with an added benefit, and it is unanimously prohibited:
"Every loan that brings a benefit is Riba."
Undoubtedly, in such scenarios, the buyer intends to benefit from the product until the price is returned, so that the profit of the item is not wasted while it is in the seller’s possession. This is a clear form of legal trickery (ḥīlah) to make interest appear permissible, and this is invalid, as the Prophet ﷺ said:
«لا ترتكبوا ما ارتكبت اليهود فتستحلوا محارم الله بأدنى الحيل»
"Do not commit what the Jews committed, seeking to make Allah’s prohibitions lawful through trivial stratagems."
[Ḍaʿīf: Ghāyat al-Marām, Hadith no. 11]
This narration was reported with a good chain by Abū ʿAbd Allāh Ibn Baṭṭah. A similar meaning is found in the Sahihayn from Jābir (رضي الله عنه):
«قاتل الله اليهود لما حرّم الله عليهم الشحوم جملوها ثم باعوها فأكلوا ثمنها»
"May Allah curse the Jews! When Allah forbade them fat, they melted it down, sold it, and consumed its price."
[Ṣaḥīḥ al-Bukhārī, Hadith no. 2236 | Ṣaḥīḥ Muslim 1581/71]
✦ Scholarly Warnings Against Legal Trickery (Ḥīlah)
A group of scholars has explicitly condemned such practices and declared them impermissible. Among them is Shaykh ʿAllāmah ʿAbd al-Raḥmān ibn Abī ʿUmar al-Ḥanbalī in al-Sharḥ al-Kabīr [80/4]:
“When the condition of option is imposed as a trick to gain benefit from a loan — so the creditor benefits from the duration by taking profit or income from the sold item — and then cancels the sale upon returning the price, then this is not a valid option. This is trickery, and during the option period, the price recipient must not benefit from or dispose of the product.”
✦ Statements of Aṣḥāb and Imams
Al-Athram reported:
“I heard from Abū ʿAbd Allāh (Imām Aḥmad). He was asked about a man who buys land from another and says: ‘I have the option (to cancel) for such and such a period.’ He said: ‘It is permissible as long as it is not a trick — for example, if someone gives a loan and takes land in return, intending to benefit from it while imposing an option clause to earn profit. If there is no such intention, then there is no harm.’”
Abū ʿAbd Allāh (Imām Aḥmad) was also asked:
“If a person, out of goodwill, wishes to give another some wealth as a loan but fears he may flee, so he buys something from him and includes an option clause — while not intending any trick — is it permissible?” He replied: “Yes, it is allowed, but if the seller dies, the option is terminated and not passed to the heirs.”
Thus, the permissibility ascribed to Imām Aḥmad applies only when there is no benefit derived from the item unless it is destroyed, or the buyer refrains from using the item during the option period, so it does not fall into the category of a profit-generating loan.
✦ Final Conclusion: When Is Such a Sale Permissible?
Hence, a sale contract is valid only if it is free from the intention of lending with benefit. Here, Abū ʿAbd Allāh refers to Imām Aḥmad ibn Ḥanbal رحمه الله.
One sign of such trickery (ḥīlah) is that the seller sells the item for less than its real price, e.g., selling for 50 what was originally bought for 100. If it were a genuine sale, would someone sell something worth 100 for 50? This clearly indicates that the transaction is not a sale, but rather a loan disguised as a sale.
Wa-Allāhu Aʿlam
[Ibn Bāz: Majmūʿ al-Fatāwā wa al-Maqālāt: 125/19]
