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Islamic Finance

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  • March 16, 2021
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Khiyar al-Taghrir

Arabic (خيار التغرير) for option (khiyar) to revoke (a contract- aqd) on grounds of deception (taghrir); it is the right of a buyer to revoke a contract due to a deliberate act of deception by the seller (or a party colluding with the seller). This involves giving inaccurate description of the object of sale in order to convince the buyer to pay a higher price (thaman). Examples of taghrir (verbal deception) includes munajashah (najsh) (see ba’i al-munajashah or ba’i al-najsh) and deception as to the actual cost price in amanah sales (buyu’ al-amanah) such as murabahah, hatitah, and tawliyah.


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