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Sahih Muslim 1531a (Book 21, Hadith 52) #10980
Annulment of Business Transactions

SUMMARY: Business transactions can be annulled as long as the parties involved have not separated.

Ibn 'Umar (Allah be pleased with them) reported Allah's Messenger as saying: Both parties in a business transaction have the right to annul it so long as they have not separated; except in transactions which have been made subject to the right of parties to annul them.
حَدَّثَنَا يَحْيَى بْنُ يَحْيَى، قَالَ قَرَأْتُ عَلَى مَالِكٍ عَنْ نَافِعٍ، عَنِ ابْنِ عُمَرَ، أَنَّ رَسُولَ اللَّهِ قَالَ ‏ "‏ الْبَيِّعَانِ كُلُّ وَاحِدٍ مِنْهُمَا بِالْخِيَارِ عَلَى صَاحِبِهِ مَا لَمْ يَتَفَرَّقَا إِلاَّ بَيْعَ الْخِيَارِ

TOPICS
transaction  *  annulment  *  separation

QUICK LESSONS:
Practice fairness and justice when it comes to financial dealings with others
EXPLANATIONS:
This hadith explains that business transactions can be annulled before the parties involved have separated. This means that if two people are in a transaction and one of them wants to back out, they are allowed to do so before they part ways. The Prophet Muhammad ﷺ taught us this principle so that we could protect ourselves from any potential harm or losses in our business dealings. He also wanted us to practice fairness and justice when it comes to our financial dealings with others.

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