What is the ruling on stipulating a price difference when effecting a mutual rescission (Iqalah)?
Chapter on Selling Assets and Fruits
Al-Mughni
Book of Sales
Primary text
The Iqalah is not valid unless it is for the equivalent of the original price, whether we rule it is a cancellation or a sale, because it is specifically designated for the original price, similar to a Tuliya (sale at original price). If one stipulates more or less than the original price, the Iqalah is void, and ownership remains with the buyer. This is because stipulating favoritism in a matter requiring equality is void, like selling one dirham for two. The intent of Iqalah is to return every right to its owner; thus, stipulating an increase or decrease takes the contract away from its purpose and invalidates it.
Supporting text
It is narrated from Abu Hanifa that the Iqalah is valid for the original price, and the condition is void because the term 'Iqalah' implies the original price, and the condition contradicts it, leaving the cancellation effect intact. This differs from other cancellations because Iqalah requires the consent of both parties, whereas other forms of rescission can be unilaterally invoked.