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Islamic Finance




Moderate Gharar


A type or degree of gharar that is a mid-range between excessive gharar (gharar fahish) and minor gharar (gharar yasir/ gharar yaseer). In other words, moderate gharar (gharar mutawassit) is neither excessive nor minor, but falls in between these two limits. Examples include an ijarah whose underlying is fruit-bearing trees, a sale of what lies beneath the surface, a sale of an object before taking possession thereof, a sale of an object that is not available at the time of sale (ba’i al-ain al-gha’ebah), ba’i al-juzaf, etc.

Other examples include gharar associated with contracts such as ju’alah, time-bound mudarabah, sharikah, etc.

In principle, this degree of gharar does not, and is not supposed to, impact the validity of contracts.



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