By definition, jahalah refers to ignorance or obscurity regarding the object of sale or price. In other words, it is the lack of knowledge about the specifics of an object, event, or action, in spit of knowledge about its occurrence. For example, from a Hanafi perspective, if the object of sale or price (thaman) is associated with major ignorance, leading to dispute (munaza’ah) between the parties to the contract, then the sale is rendered defective (ba’i fasid).

Jahalah is a special case of gharar. However, gharar is more general than jahalah. Necessarily, everything associated with jahalah is also considered to be containing gharar. Although jurists tend to associate jahalah with qualitative and quantitative uncertainty, while associating gharar with the existence or non-existence of the object of sale or exchange, the two terms are often used interchangeably to describe uncertainty in commutative contracts. Gharar and jahalah involve speculation as to the result of an action or event, as in the game of throwing a pebble to determine the actual object of sale to be exchanged between the parties against a price (or what is termed ba’i al-hasat).