Gharar — Uncertainty in Contracts

Alongside interest, Islamic commercial law prohibits gharar — excessive uncertainty, ambiguity or deceit in a transaction.

At a glance

Gharar refers to excessive uncertainty in the essential terms of a contract — the price, the object, its existence or delivery — of a kind that could turn an exchange into a gamble or a source of dispute. A sale of something one does not possess, of an undefined quantity, or on unclear terms, all fall under it. The prohibition sits beside that of ribā as one of the two pillars of Islamic contract ethics, and it is closely tied to the ban on gambling (maysir).

The purpose is fairness and informed consent: both parties must know clearly what they are exchanging. This is why Islamic law places such weight on disclosure, on documenting obligations, and on defining the scope of an agreement precisely. In modern application the same principle argues for clear pricing, defined deliverables and honest timelines — removing the ambiguity that breeds injustice and conflict.

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Curated reference on Islamic belief and thought. On matters where traditions differ, positions are attributed rather than adjudicated; verify points of doctrine with qualified scholars.