Hadith Text & Context

"The Messenger of Allah said: 'The two parties to a transaction both have the choice so long as they have not separated or they have chosen to conclude the transaction.' Or perhaps Nafi said: 'Or one of them has said to the other: 'Decide!'" (Sunan an-Nasa'i 4471)

Legal Principle of Khiyar al-Majlis

This hadith establishes the fundamental Islamic legal principle known as "Khiyar al-Majlis" (Option of Session), meaning both buyer and seller retain the right to cancel the transaction as long as they remain together at the place of transaction.

The separation referred to can be physical departure from the transaction venue or verbal conclusion indicating final agreement. This protection prevents haste and ensures mutual consent in financial dealings.

Scholarly Interpretation

Classical scholars like Imam Nawawi explained that this option exists until parties physically separate or explicitly finalize the agreement. The phrase "or they have chosen to conclude" indicates verbal confirmation beyond mere offer and acceptance.

The alternative narration "Decide!" shows that urging the other party to finalize constitutes conclusion of the choice period. This protects both parties from regret and ensures transactions are entered willingly.

Practical Application

This ruling applies to all financial transactions in The Book of Financial Transactions. Merchants must allow this period for reflection, and buyers may retract offers before finalization.

The wisdom behind this ruling includes preventing disputes, ensuring transparency, and aligning commercial practices with Islamic ethics of mutual consent and fairness in trade.