Gharar refer to an arabic terms of (الغرر ) which is mean unknown, risk, uncertainty or hazard that might lead to destruction or loss.
something which its consequence is undetermined.
anything that the end result is hidden or the risk is equally uncommon, whether it exists or not.
it refers to any transaction of probable items whose existence or characteristics are not certain, due to lack of information, ignorance of essential elements in the transaction to either party.
Due to the uncertainty and risk involved, it makes a transaction similar to gambling. which is the main reason behind the prohibition of gharar.
The rationale of prohibition of gharar is to ensure full consent and satisfaction of the parties in a contract. Without full consent, a contract may not be valid.
Full consent can only be achieved through certainty, full knowledge, full disclosure and transparency.
There are two types of Gharar:
- Gharar Yasir (light or minor uncertainty)
- Gharar Fahish (excessive or major uncertainty).
Both forms of gharar are not haram. Gharar Fahish is the haram kind of Gharar. Gharar Yasir is under the halal class of Gharar.