In the context of Islamic financial mua’amalat, an aqd ghair lazim (عقد غير لازم) refers to a valid and effective contract (aqd) that is also non-binding (revocable) on the parties to the contract. In this contract, any of the parties has the right to revoke it unilaterally (without the consent of the other party). Also, this contract can be terminated by mutual consent (faskh). Contracts of a specific nature might be nonbinding or revocable, i.e., both parties to the contract are allowed to revoke it unilaterally.
Examples of such contracts are kafalah (suretyship), wakalah (agency), wadia’ah (amanah deposits), sharikah (partnership), ju’alah, loans of non-fungibles (a’ariyah), among others. These contracts can be terminated by either party without the consent of the other. There is also a set of contracts which are nonbinding until delivery of the subject-matter such as hibah (gift), rahn (pledge), loan of fungibles (qardh), etc.
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