European Journal of Law and Economics

, Volume 33, Issue 3, pp 565–575 | Cite as

The application of the Khiyar al-‘Aib (option of defect) principle in on-line contracts and consumer rights



This paper scrutinises the legal protection of consumer rights in on-line contracts through the application of Khiyar al-‘Aib (option of defect). Khiyar al-‘Aib is a legal Islamic mechanism by which, one party, both parties or even a third party can nullify a contract, electronically or conventionally. Khiyar (option) means the authority to nullify a contract and Aib means defect. In fact, it is a right given to the purchaser to cancel the contract if he discovers that the object acquired has defect that diminishes its value. In on-line contracts, the consumer has no direct contact with the merchant and cannot easily verify the quality of the goods, thus creating a situation in which contracting parties are not at equal bargaining strength. Therefore, application of Khiyar al-‘Aib (option of defect) would be helpful in protecting consumer rights in the virtual world. This paper explores the Islamic principles by taking Iranian laws as well as the European law as a point of reference.


On-line contracts Khiyar al-‘Aib Consumer rights Law Islam 

JEL Classification

K1 K12 


  1. Ansari M., (2010). Al-Makasib, Translated by: Payani, Dar-ol- Elm Publication, Qom, Iran, Vol. I.Google Scholar
  2. Awad, A. (1998). The concept of defect in American and English products liability discourse: Despite strict liability linguistics, negligence is back with a vengeance! Pace International Law Review, 10, 275–360.Google Scholar
  3. Bainbridge, D. (2000). Introduction to computer law (4th ed.). London: Pearson Education, Longman.Google Scholar
  4. Bakhtiarvand, M. (2007). Consumer rights in electronic contracts. Ph.D thesis, Tehran University, Tehran.Google Scholar
  5. Billah, M. M. (2006). Shari’ah standard of business contract. Kuala Lumpur: A.S. Noordeen.Google Scholar
  6. Chissick, M., & Kelman, A. (1999). Electronic commerce law and practice. London: Sweet & Maxwell.Google Scholar
  7. Dayani, A. A. R. (2007). The comparison of the principles of Khiyar al-‘Aib in Fiq, Civil law, European law and French law. Journal of Law & Political Science, 37(3), 127–154.Google Scholar
  8. Delta, G. B., & Mastuura, J. H. (2003). Law of the internet (2nd ed.). UK: Aspen Publishers.Google Scholar
  9. European Directive 1999/44/EC, Accessed 21 Aug 2011.
  10. Fleming, J. G. (1992). The law of torts (17th ed.). USA: The Law Book Co.Google Scholar
  11. Frederick, V. P. (2007). Shari’ah, islamic law and arab business ethics. Connecticut Journal of International Law, 22, 357–369.Google Scholar
  12. Hossein, S. N. (2010). The civil liability of the providers and intermediaries of the electronic relations (2010). Journal of Law & Political Science, 40(2), 199–218.Google Scholar
  13. Kamali, M. H. (2002). Islamic commercial law, an analysis of futures and options. Kuala Lumpur: ILMIAH Publishers.Google Scholar
  14. Mansuri, M. T. (2006). Islamic law of contracts and business transactions. Islamabad: ADAM Publishers and Distributors.Google Scholar
  15. Mehdi, S. (1997). The formation of contracts and obligations. Tehran: Hoghughdan Publication.Google Scholar
  16. Naser, K. (2005). Civil law in the present legal discipline. Tehran: Mizan Publication.Google Scholar
  17. Naser, K. (2006a). Civil code at the new legal discipline. Tehran: Mizan Publication.Google Scholar
  18. Naser, K. (2006b). The liability caused by the defect of producing. Tehran: Tehran University Publication.Google Scholar
  19. Naser, K. (2009a). The innovation in the concept of fault in civil liability. Journal of Law & Political Science, 38(1), 189–214.Google Scholar
  20. Naser, K. (2009b). Limits of freedom of contract on the basis of consumer protection. Journal of Law & Political Science, 38(3), 328–333.Google Scholar
  21. Pedram, K. S. (2006). Protecting consumers in e-commerce and The Modern Law of European Union. Ph.D thesis, Shahid Beheshti University, Tehran.Google Scholar
  22. Ramsay, I. (2007). Consumer law and policy. Portland: Hart Publishing.Google Scholar
  23. Reimann, M. (2002). Liability for defective products at the beginning of the twenty-first century: Emergence of a worldwide standard. American Journal of Comparative Law, 51(7), 192–205.Google Scholar
  24. Shahabudin, S. N. (2005). Paper presented at the Malaysian law conference 16 Nov 2005. Accessed 15 Jul 2011.
  25. Wook, I. (2006). Consumer protection in e-commerce: The current legal framework in Malaysia. Proceeding’s of national conference on law and technology, Faculty of Law, Universiti Kebangsaan Malaysia.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  1. 1.Bakhtar Institute of Higher EducationIlamIran
  2. 2.Faculty of LawUniversiti Kebangsaan MalaysiaBangiMalaysia

Personalised recommendations