Gharar: the excessive uncertainty that makes a contract questionable
AmanaFi team · Updated · 1 min read
Gharar means excessive uncertainty in a contract: you do not really know what you are buying, at what price or whether delivery will happen. Jurists tolerate minor uncertainty, but not excessive.
Classic and current examples
The traditional example is selling fish still in the water or a bird in flight. Today the same principle targets contracts where the object, price or timing stay vague.
- An object not defined or described.
- A price unknown when committing.
- Uncertain delivery or outside the seller's reach.
- Bets and gambling disguised as investment.
What is tolerated
Minor, unavoidable uncertainty that does not give rise to dispute is accepted in everyday transactions. It is major uncertainty that concentrates the prohibition.
Protecting yourself
Before signing, check that the good or service is clearly described, the total price is known, the date is set and the exit conditions are written down. Beware of promises of very high gains without a clear explanation of the mechanism.
Frequently asked
Is conventional insurance gharar?
Several jurists think so, which motivates alternatives like takaful. Views vary by case and institution.
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