Business Laws – (Option) Condition of Taking an Appro

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Business Laws

Q: What is the ruling regarding the option of placing a condition (i.e. ‘Taking on appro’) for the buyer or seller?
A: This option is valid for both the buyer and the seller.

Q: Is there a limit placed on this?
A: The limit of option depends on whatever duration is placed by one of the parties, with the happy consent of the other.

Q: Two persons contracted a sale, the seller himself specifies a duration of option, and the buyer took possession of the goods. The goods were destroyed by the buyer during this period. What is the ruling?
A: The basis of this is, that since the seller placed the condition of choice, the article remains his property. When the buyer took possession of the article, he was in actual fact taking hold of the seller’s property. If it is destroyed in his (buyers) possession during this period, then he (buyer) is responsible. He must replace the item, if it is such that it can be replaced (eg. something which is weighed or measured) or he must compensate the seller the value of the destroyed item, if it cannot be replaced by similar item (eg. A sheep).

Q If the buyer specifies the condition of option upon himself, then will this remove the article from the sellers ownership?
A: The buyers’ placing the option does not prevent the article coming out of the sellers ownership. However, according to Imaam Abu Hanifa (rahmatullahi alaih) the buyer does not become the owner of the article. Saahibain [Imaams Abu Yusuf and Muhammad (rahmatullahi alaihima)] say that the buyer now owns the article.

Q: If the article is destroyed in the hands of the buyer in the condition that he placed the condition of option, who then is responsible for this destroyed article?
A: The responsibility is the buyers and the article is destroyed with its value. This means that the buyer must fulfill to the seller the agreed price of sale.

Q: What is the ruling if the buyer made the condition of option and a fault was introduced in the article, whilst it was in his (buyers) hands?
A: If the fault is irreparable – eg. the hand of a slave is cut (assuming the article of sale is a slave), then the same law of destruction of the article will apply, i.e. the buyer must hand over the agreed price of sale. If the fault is temporary, e.g. the slave falls ill, then the buyer still has his choice during the stipulated period. If the duration terminates and the fault is still present, the sale will be binding, due to the buyer failing to return during the specified period.

Q: What is the benefit of the option to the stipulator thereof?
A: He has the choice of cancelling the sale during this period or he may validate it.

Q: Is it necessary for the person who has the option, to cancel or validate the sale in the presence of the other party?
A: If he validates the sale in the absence of the other person it will be valid. However, to cancel the sale the presence of the other party is imperative.

Q: A slave is sold on this understanding that he is a baker or writer, and the buyer finds the slave otherwise, what can he do?
A: The buyer has a choice. If he wishes, he can keep the slave for the full agreed price or he may cancel the sale and return the slave.

Q: One of the two parties had the option of condition and he dies prior to this period expiring or before the sale was validated. Does this choice now pass on to his heirs?
A: His choice is invalid in this instance. This choice is not passed on to his heirs. The sale is considered complete and binding.