MINISTRY OF OPTIONS |
| DIRECTOR Rudolf Ozolinsh |
ABOUT
Of valid and invalid options.
Sale is valid with a stipulation for an option to both or
either of the contracting parties, or to a person who is a
stranger to the contract. An option, is a power to cancel, Option,
not to confirm the contract. Hence, if the option be w at'
extinguished by expiration of its period, the contract is
completed.
Some options are invalid by general agreement, as if Option the purchaser should say, " I have purchased on con- JSp,,^^0* dition of an option," or " on condition that I shall have an for longer option for days," or, " for ever." Others, again, are valid three days, by general agreement, as if he should say, " on condition of an option for three days," or, " less than three days;" while, with regard to others, opinions differ, as if one should say, " on condition of an option for one or two months." Such an option would be lawful according to Aboo Yoosuf and Moohummud, but invalid according to Aboo Huneefa, the latter considering three days to be the extreme limit for options by stipulation, while the former held an option for a longer period to be equally
* Arab. Khiyar-oos-shurt. This option is founded upon a recommendation of the Prophet to Haban, who was liable to be imposed upon in his bargains.—Hamilton,s Hedaya, vol. ii. p. 380. The words of the saying, as given in the original, are, " Haban, when you buy or sell, say, No deceit, and I must have an option for three days"
lawful, provided a known period be mentioned. The Imam's opinion, however, is the more correct.* Yet if a person should stipulate for an option longer than three days, or even for ever, which would vitiate the contract, but should afterwards allow or confirm it within three days, we hold that in such case the contract is valid. Upon this point opinions differ as to the view taken by Aboo Huneefa of the contract in its inception. Some say that he considered the contract to be originally unlawful, but to be rendered valid by the extinction of the option before the fourth day; and this is the opinion of the people of Irak. While others maintain that he considered its legality to be in suspense, and that the contract did not become invalid until the expiration of some part of the fourth day. This is the opinion of the people of Khoorassan, and of the Imam Surukhsee, and others of the learned men of Mawara'oon Nuhr, and appears to be the most proper, though the Zahir Rewayut is said to accord with the former opinion. Where the period of option is undefined, but the person in whose favour it has been reserved renders it void after three days, Aboo Huneefa was of opinion that the contract remained invalid, though his disciples considered that it became lawful.