Uncertainty in transactions

CategoriesTrade, Business & All Things Money [490]

Uncertainty in transactions (Gharar)

In the name of Allah, the most Beneficent, the most Merciful.

Answer

The term gharar literally means danger.  The linguistic origin of the term gharar refers to items with a likeable appearance and disliked reality.  Gharar sales refer to the existence of gharar either in the nature of the sale itself, or the sale is what qualifies as gharar.  For example, selling birds in the air etc.

Gharar lexically refers to deception, where a necessary condition for acceptability may not exist.

In jurisprudence, the term gharar refers to purposive cheating and deception as well as ignorance of the object of sale and undeliverability of the object.

(Extracted from Fiqh Al Islami Wa Adillutah p.82 v.1)

Imam Kasaani (RA) has said that gharar may occur in a number of forms: through undeliverability of the object of sale (e.g. a runaway horse or camel), non existence of the object or the lack of full ownership of the object by the seller (e.g. fish in large volumes of water.)  (Badaaius Sanaai p.15 v.3)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.

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