OPTIONS CONTRACTS: DEFINITION, GOVERNANCE AND EFFECTS ON CONTEMPORARY FINANCIAL TRANSACTIONS

Abstract

This paper deals with the definition of options contracts, the statement of their ruling, the wisdom of their legislation, the difference between them and the option in Islamic jurisprudence, and trying to adapt this contract so that we can judge it in a correct way.The option in the terminology has many definitions, but they often dealt with this term coupled with another term for the types of options without the definition of the option in general, but the definition of the option can be derived from where it is through the definitions of the types of option by saying: It is the right of the contractor to rescind or sign the contract, because of the emergence of a legitimate justification or under a contractual agreement.The purpose of the options is to avoid the deficiency that occurs after the failure of the contract, provided that the contract is necessary. This is after the convening, validity and enforceability tapes have been achieved, that is, the judgmental options are to mitigate the consequences of breach of the contract at the beginning due to lack of complete information, or to enter confusion and injustice and the like, which leads to damage to the contractor, or in the end as a failure to perform. The purpose of the judgmental options is to scrutinize the two wills and purify the element of consent from impurities in order to pay the damage to the contractor.These contracts, the subject of which is the option, are completely accidental contracts, and the world or the jurists do not entrust them in the manner described above, and since they are accident contracts, the duty requires that they be conducted on the rules of dealing to be based on them until their rule in Islam becomes clear for the clear difference in the principles of rulings, between the rule of dealing in secular countries, and the rule of dealing in the Islamic system.