---
title: "What is Gharar? | IslamicOpenFinance™"
description: "Excessive uncertainty in a contract, about the object, price, quantity or delivery, which can make the contract invalid."
url: https://islamicopenfinance.com/glossary/gharar/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Shariah fundamentals](https://islamicopenfinance.com/glossary/#fundamentals)

Shariah fundamentals

# Gharar

Excessive uncertainty in a contract, about the object, price, quantity or delivery, which can make the contract invalid.

Gharar is uncertainty or ambiguity in the essential terms of a contract, such as what is sold, its price, its quantity or when it will be delivered. Scholars and standard setters distinguish excessive gharar, which vitiates a contract, from minor uncertainty that is unavoidable in ordinary trade and tolerated. Bank Negara Malaysia lists the avoidance of excessive uncertainty, gharar fahish, among the fundamental Shariah principles that Islamic products must meet.

## Sources

- [Bank Negara Malaysia, Shariah Contract Framework discussion paper, 2024: fundamental Shariah principles, excessive uncertainty (gharar fahish)](https://www.bnm.gov.my/documents/20124/938039/dp-shariah-contract-nov24.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Riba** An increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods.](https://islamicopenfinance.com/glossary/riba/) [**Maysir** Gambling or games of chance, where gain depends on luck rather than productive exchange; prohibited in Islamic finance.](https://islamicopenfinance.com/glossary/maysir/) [**Salam** A forward sale: the full price is paid at signing for precisely specified goods to be delivered later.](https://islamicopenfinance.com/glossary/salam/) [**Fiqh al-muamalat** The branch of Islamic jurisprudence that governs commercial and financial dealings between people.](https://islamicopenfinance.com/glossary/fiqh-al-muamalat/)

**Shariah fundamentals**

1. [Riba](https://islamicopenfinance.com/glossary/riba/)
2. [Maysir](https://islamicopenfinance.com/glossary/maysir/)
3. [Shariah](https://islamicopenfinance.com/glossary/shariah/)
4. [Fiqh al-muamalat](https://islamicopenfinance.com/glossary/fiqh-al-muamalat/)
5. [Maqasid al-Shariah](https://islamicopenfinance.com/glossary/maqasid-al-shariah/)
6. [Riba al-nasiah](https://islamicopenfinance.com/glossary/riba-al-nasiah/)
7. [Riba al-fadl](https://islamicopenfinance.com/glossary/riba-al-fadl/)
8. [Al-ghunm bil-ghurm](https://islamicopenfinance.com/glossary/al-ghunm-bil-ghurm/)

[All 221 terms](https://islamicopenfinance.com/glossary/)