Is It Permissible for the Seller to Cancel a Sale after Agreeing to a Sale?

Answered by Mawlana Ilyas Patel

Question

I intended to sell a used cycle. I was ignorant of the market price for that cycle, so I just assumed its price and posted an advert. Later, when a buyer came, and we agreed to fix a price, we took the cycle to inspection, and there, the worker said that the market price of that cycle was more than what I had earlier agreed upon. I canceled the transaction with the buyer at that price as my offer price was less than the market price. Was this act wrong? Please advise what I should do in such scenarios. I later sold it to another person at the near market price.

Answer

In the Name of Allah, the Most Merciful and Compassionate.

I pray you are in good faith and health.

One cannot unilaterally cancel a sale unless one has a pre-specified option to cancel (khiyar al-shart) in a sale agreement. However, it is valid to request that the contract be canceled. If the other party does not refuse, the contract will be canceled.

Allah Most High said, “O you who believe! Fulfill your contracts.” [Quran, 5.1]

As an aside, it is recommended (though not obligatory to agree to cancel a contractual agreement, e.g., accepting the return of a sold item.

Allah Forgives Those Who Cancel Regretful Sales

Abu Huraira (Allah be pleased with him)reported that the Messenger of Allah (Allah bless him and give him peace) said, “Whoever cancels the sale of a regretful Muslim, Allah will cancel his mistakes on the Day of Resurrection.” [Ibn Maja]

I would like you to go through the valuable answers and links below. You will receive guidance and direction in sha’ Allah.

Related

• Can You Buy from a Seller Mentioning a No-Returns Policy? – (seekers.flywheelstaging.com)
• Running a Business Islamically
• Business Archives
• Fiqh of Sales Archives
• Islam’s Vision of Business Ethics with Shaykh Abdal Hakim Murad
• Key Principles in Financial Transactions: Honesty & Dealing With Excellence

I pray this helps answer your question.

[Mawlana] Ilyas Patel

Checked and Approved by Shaykh Faraz Rabbani

Mawlana Ilyas Patel has received traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Presently, he lives in the UK with his wife and is interested in books and gardening.