All agreements or contracts are mandatory, and the main condition to mandate a contract such as a selling or renting contract is to be free of any of the options to justify the breaking of the contract by one or any of the parties. Some of these options are: the conditional option, the appointment option, the defect option, the inspection option, and the bankruptcy option. Therefore, if the agreement statement contains any of those options or any others, it is the choice of contractor to either accept or reject the contract. In fact, the contractors can use any of the options, if any applied to cancel the contract at any time without any obligations. This study will focus on the bankruptcy option, which is considered one of the justified options to not fulfill a contract or agreement statement. The study will further investigate and examine the concept of bankruptcy, its legitimacy, how it is viewed by scholars, and its various terms and conditions