Arabic (إقالة العقد) for the revocation of a contract (aqd) (which is, nevertheless, a valid contract) by mutual agreement of the parties. For example, iqalah may involve the dissolution of a contract of sale (aqd al-ba’i/ aqd-al-bay’) whereby the seller retains or takes back the object of sale and pays back its price (thaman) to the buyer (cancelling the contract as if it has never been).

Iqalah is a type of faskh (faskh is broader and includes iqalah, among others).