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Conditional Kafalah


A kafalah agreement that becomes effective if certain conditions are met. In other words, the guarantee/ suretyship comes into force when the conditions (shurut/ pl. of shart) are met or satisfied as agreed between the parties. For example, someone may accept to guarantee a debtor if the latter owes less than a specific amount of money (say, $10,000). In such a case, the guarantee will take effect when the principal debtor is indebted for $10,000 or less.

It is also referred to as kafalah mu’allaqah.



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