Is annulment a rescission or what?

From a jurisprudential perspective, iqalah (cancellation) is defined as the annulment of a contract and the revocation of its ruling by mutual consent of both parties. Scholars have differed on its legal classification, holding various opinions:

1. Pure Annulment (Faskh): This is the view of the Shafi’is, Hanbalis, and Muhammad ibn al-Hasan. Their reasoning is that iqalah linguistically means "to lift" or "to remove," and it differs from a sale. 2. A Sale (Bay') for the Contracting Parties and Others: However, if it is impossible to consider it a sale, then it becomes an annulment. This is the opinion of Abu Yusuf and Imam Malik, because it involves the exchange of property for property. 3. An Annulment for the Contracting Parties and a Sale for Others: This is the view of Abu Hanifa. He argued that iqalah entails annulment, but it is considered a sale in relation to third parties to protect their rights.

This difference in opinion leads to many jurisprudential implications.