Arabic (إقالة) for cancellation of a contract (aqd); a bilateral agreement of the contracting parties to not proceed with the contract, and to remove/ reverse its potential legal effect. For example, shari’ah permits that a salam contract be cancelled upon the agreement of both parties in return for salam capital (ras mal al-salam) repayment in full. In such a case, the contract will be deemed as if it was not entered into.
Partial iqalah is also possible and permissible. That is, both parties may agree on the delivery of part of the underlying only in return for repayment of a corresponding part of the price (thaman).
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