Step 1: Understanding the Concept:
The question relates to the concept of 'Mahr' (dower) in Muslim Personal Law, specifically 'deferred mahr'. Mahr is a sum of money or other property which the wife is entitled to receive from the husband in consideration of the marriage. It is divided into two parts:
1. Prompt Mahr (Mahr-i-Mu'ajjal): Payable on demand at any time after the marriage.
2. Deferred Mahr (Mahr-i-Muwajjal): Payable upon the dissolution of marriage, either by death or by divorce.
Step 2: Detailed Explanation:
The statement in the question is "Deferred mahr is payable at the time of divorce or at the time of death of spouse." This accurately describes the nature of deferred mahr under Muslim law.
\[\begin{array}{rl} \bullet & \text{Deferred Mahr acts as a form of security for the wife. It becomes due when the marriage ends. } \\ \bullet & \text{The end of the marriage can be due to two events:} \\ \bullet & \text{Divorce: If the husband divorces the wife.} \\ \bullet & \text{Death: If either the husband or the wife dies.} \\ \end{array}\]
\item This principle is well-established under both Sunni and Shia schools of Muslim law. Therefore, the statement is true under Sunni law.
\item Options (C) and (D) are incorrect because they present an incomplete picture, limiting the payment to only one of the two possible events (divorce only or death only). Option (B) is incorrect because the statement is true.
\end{itemize}
Step 3: Final Answer:
The correct answer is (A) because the statement accurately reflects the rule for the payment of deferred mahr under Sunni (and also Shia) law, which is that it becomes payable on the dissolution of marriage by either death or divorce.