8. Revocation due to Non-compliance with a Condition | Islamic Laws by The Leader Ayatullah Ali Khamenei


8. Revocation due to Non-compliance with a Condition


Q1554. A person bought goods from another person on condition that he settles the price in two months time, and provided that the buyer has the right to revoke the deal during that time. However, the buyer returned the goods to the vendor after seven months. The vendor accepted the returned goods on condition that a certain amount, calculated as a percentage of the sale price, is charged to the buyer due to the damage sustained by the vendor.

Has the buyer the right to revoke the deal after the agreed period of revocation so much so that the vendor has no alternative but to accept the proposition? And has the vendor the right to make his acceptance of revoking the sale dependent on charging a percentage of the sale price?

A: After the lapse of the agreed period during which revocation can be exercised, the party who had the right of exercising the power of revocation has no right to revoke the contract and return the goods. Similarly, he has no right to force the vendor to agree to his proposition. However, both the parties can bilaterally revoke the contract. That said, the vendor has no right to accept bilateral revocation in return for a charge, for if he does so, it becomes void.


Q1555. Is it permissible for either party of the contract to rescind it under the pretext that his purpose of the sale has not been served?

A: Non-materialization of the intents and purposes does not necessarily and lawfully lead to the revocation of the contract unless it is provided for in the contract itself or its conclusion was based on such a purpose.


Q1556. I sold my business and noted the sale on a piece of paper, on condition, among others, that the buyer bears all the taxes. Now, he is refusing to honor this condition. Have I the right to revoke the sale?

A: The vendor has the right to revoke the contract provided that it is explicitly stipulated in the contract that he would have such a right in case the buyer does not pay the taxes.


Q1557. A person bought a piece of land on condition that he would have the right of revocation in the event of the government department refusing to register it in his name, or if it transpired that the government needs the land for initiating some project. Since the buyer is still unable to obtain the necessary building permit, he is demanding from the vendor to abrogate the sale and return his money. However, he made a new condition that the vendor resells him the land at the same price if the department concerned gives him permission to build within two years. Is he justified in making such provisions?

A: The buyer could have the right of revocation according to the terms of the contract between the two parties. Accordingly, it is permissible for him to revoke the contract and demand his money back from the vendor. However, he has no right to impose [new] conditions at the time of revoking the first contract.


Q1558. Two people concluded a deal, committing themselves to certain conditions. The buyer paid a down payment. However, he refuses to abide by the rest of the conditions. Has he the right to demand from the vendor to proceed with the deal?

A: Provided that the vendor did not revoke the contract for breach of the condition, he has to honor his side of the deal. However, if he has the right to revoke the contract — even due to breach of some conditions by the buyer — he is justified in revoking the sale. Should this be the case, the buyer has no right to force him to comply with anything apart from returning his deposit.