Derivatives
Bull Call
January 29, 2022
Risk Management
DD
January 29, 2022

Arabic (جهالة يسيرة) for a type of jahalah that denotes “minor or slight ignorance” of some aspect of a contract or transaction. Minor ignorance is typically excusable or forgivable by shari’a and doesn’t render contracts void or defective. Jahalah yaseerah usually doesn’t lead to dispute (munaza’ah) between the parties to a contract, and hence the shari’a stance of excuse. An example of sales that are associated with jahalah yaseerah is the sale of a building without the buyer examining its foundations (as this is impractical or unimaginable in such a sale).

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