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Islamic Finance

  Islamic Finance   |   Terms
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  • May 18, 2023
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Shart

Arabic (شرط) for a condition or stipulation in a contract (aqd). Examples of shart (plural: shurut) include a lease with the condition of transfer of ownership (ijarah bi shart al-tamlik) and a restricted mudharabah with the condition that al-mudharib shall confine investment of mudharabah funds/capital (rasmal al-mudharabah) to a specific venue or geographical area, etc.

Shart comes in different types: shart sahih, shart batil, shart fasid, shart mu’allaq lil-aqd, etc.


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