Contract:

A contract has three elements

1. Form-Sighah (offer and acceptance (Ijab-o-Qabul)

2. The contracting parties

3. Subject matter

Form of Contract:

Form (Sighah) is the instrument or means by which a contract is made: it consists of offer (Ijab)
& acceptance (Qabul). The instrument or means by which the intention of the contracting parties
about the conclusion of the contract is expressed. This instrument or means is sometimes a word
and sometimes a writing or an allusion, and sometimes an act.

Conditions necessary for Form (Sighah): As Form (Sighah) comprises an offer (Ijab) from one
party & acceptance (Qabul) from the other. Muslim jurists laid down certain conditions for offer
and acceptance without the fulfillment of which contract cannot be concluded. These conditions
are;

1. Conformity of offer and acceptance on same subject matter: It is necessary that acceptance
must conform to offer in all its details irrespective of whether such conformity is expressed
or implied and it should be accepted in the same meeting
2. Issuance of offer and acceptance in the same session of contract (Unity of Session):
According to jurists when an offer is made, it must be accepted in same meeting. However,
the promisee is allowed to think over the offer for some time. The basis of this viewpoint is
precept of Holy Prophet (SAW). The contracting parties have the right of opinion until they
separate. The requirement of unity of session has been interpreted in different ways. To the
modern jurists, whatever time is taken by the promisee to communicate his acceptance may
be called continuance of the same meeting.
3. Option of stipulation (Khiyar-al-shart): It is a mechanism provided by Islamic Law to
overcome the problem caused by the restriction of unity of session. This option or right makes
a contract non-binding for the party, which has reserved that right within a specific period.
Explanation: Commenting upon on the condition of unity of contract session the Federal
Shariat Court has observed the following;

A narrow interpretation of majlis (meeting) would mean that the offer of the promisor should
be accepted without any delay and without giving the promisee any opportunity to think or
consult someone in order to make up his mind. This may be practicable in small transactions
but will fail in bigger transactions, which may require considerable inquiry. Thus, if an offer
is made for sale of a factory, it will require inquiry into the title, power to sell, value of
machinery, value of building, its liabilities, if any profitability etc. If the (meeting) majlis is
interpreted to mean single session, no one will consider purchasing a property.

The Court further noted; that the language of the above-mentioned tradition
demonstrates that it was only meant to denote the law of revocation. Thus if two parties agree
to enter into a contract in one meeting, each of them shall have a right to retract from it till
they separate. This appears to be the object. Its other object is that the offer must be taken
seriously. To some modern scholars the word “meeting" is only legal fiction in that whatever
time is taken by the promisee to communicate his acceptance may be called the continuance
of the same meeting.(Ref.as above) The FSC as such shown the matter related to "Khiyar al
shart.

This right is known in Islamic Law as "option of stipulation"(Khiyar-al-shart). The option of

stipulation is the power by virtue of which one of the two contracting parties can give his final
assent to the contract within a specified time. As such, if a purchaser, while giving his consent
to the offer, retains the right to accept or reject it within three days (different opinion of the
scholars is found), the contract will not be binding on him during that period. This means
that Islamic Law provides a mechanism to overcome the problem caused by the restriction of
unity of session. It is pertinent to point here that the requirement of unity of session does not
apply to agency, making bequest (Will) and appointment of an executor for the property of
minor.

The offer survives till the acceptance proceeds.