Gharar refers to uncertainty in the essential elements of a contract that makes the contract invalid according to Islamic law. There are several types of uncertainties that can cause Gharar, including uncertainty around the existence, possession, terms, subject matter, price, or time period. A contract with Gharar is not considered valid. Qimar refers to a contract where parties risk their wealth based on an uncertain outcome, with the possibility of one party gaining the other's wealth for nothing or losing their own wealth for nothing. For a contract to be considered Qimar, it must involve risking wealth between two or more parties based on an uncertain event, with the possibility of gaining another's wealth without compensation or losing one's own wealth

1. 1
Committed to you
Gharar
• Gharar can be defined as follows:
“The uncertainty that is present in the Basic elements of an Agreement”.

2. 2
Committed to you
Gharar
• Gharar is one of those impediments which make the contract illegitimate.
• An agreement that has an element of Gharar is not Valid from the Shariah point of
view, irrespective of whether the parties to the agreement agree upon the agreement or
not.

3. 3
Committed to you
Gharar
• A contract may be void through the following factors of Gharar:
– Uncertainty in existence of subject matter.
• Sale of unborn baby of cow
• Sale of stolen car
– Uncertainty in possession of subject matter.
• Sale of Receivables
• Sale of Bill of Exchange

4. 4
Committed to you
Gharar
– Uncertainty in contract
• Sale Contract within the Lease Contract
• Conditional Contract
• Sale of Security Deposit
– Uncertainty in subject matter
• Sale Contract for unspecific subject matter
• Sale Contract of unknown subject matter
• Subject matter having unknown quantity

5. 5
Committed to you
Gharar
– Uncertainty in price
• Sale Contract without mentioning price
• Sale Contract on market Value and both parties do not know that price
• ‫االاستجرار‬ ‫بیع‬
• Sale Contract using Bench Mark
– Uncertainty in time period

6. 6
Committed to you
Qimar
• Qimar is a contract wherein more than one parties put their wealth at stake( either to
pay immediately or in future) conditioned with the occurrence of some uncertain event.
One party either loses the entire wealth or partial wealth for nothing or manages to
grab the wealth of the other party for nothing.

7. 7
Committed to you
Qimar
• Qimar, Maiser ,Wagering or Gambling has been defined as a deal in which the act of
making a person owner of something, depends on a contingency the two sides of which
are equal, and consequently there are two equal possibilities of taking total profit or
absorbing total loss.

8. 8
Committed to you
Qimar
• Necessary Elements of Qimar:
• If the following four elements are found in any transaction, it would be Qimar that is
impermissible in Islam:
1. Qimar is a transaction between two or more parities.
2. In Qimar, one makes an attempt to get the wealth of another person by making it
conditioned with the occurrence of an uncertain event which may or may not takes
place.

9. 9
Committed to you
Qimar
• Necessary Elements of Qimar:
3. In Qimar, Only the parties of the contract put their wealth at stake to grab the others.
4. In Qimar, one becomes the master/owner of another person`s wealth without any
compensation or vice versa. In that case the loser incurs a total or partial loss. (So, if
one is fully compensated against his money, then this transaction shall not fall into the
category of Qimar)

10. 10
Committed to you
Qimar
• Practical Examples of Qimar:
• Qimar in Insurance
• Multi Level Marketing

11. 11
Committed to you
JazakAllah o Khair