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Islamic Finance


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What Is the Difference Between al-Gharar and al-Jahalah?


By definition, al-jahalah refers to ignorance or obscurity regarding the object of sale or price. In other words, it is the lack of knowledge about the specifics of an object, event, or action, in spit of knowledge about its occurrence. For example, from a Hanafi perspective, if the object of sale or price (thaman) is associated with major ignorance, leading to dispute (munaza’ah) between the parties to the contract, then the sale is rendered defective (ba’i fasid).

Al-Jahalah is a special case of al-gharar. However, al-gharar is more general than jahalah. Necessarily, everything associated with al-jahalah is also considered to be containing al-gharar. Although jurists tend to associate al-jahalah with qualitative and quantitative uncertainty, while associating al-gharar with the existence or non-existence of the object of sale or exchange, the two terms are often used interchangeably to describe uncertainty in commutative contracts. Al-gharar and al-jahalah involve speculation as to the result of an action or event, as in the game of throwing a pebble to determine the actual object of sale to be exchanged between the parties against a price (or what is termed ba’i al-hasat).

Al-Jahalah Al-Gharar
A type of al-gharar. Its concept is narrower than al-gharar. It encompasses al-jahalah. Its concept is more general or wider.
Usually, it relates to quantitative and qualitative uncertainty. Typically, it is associated with the existence or non-existence of the
object of sale or exchange.
Minor jahalah (al-jahalah
al-yaseerah
) may be excusable or forgivable.
Minor gharar (al-gharar al-yaseer) may, also, be excusable or forgivable.
Excessive jahalah renders a
commutative contract defective.
Excessive gharar, also, renders a commutative contract defective.
Every jahalah that invalidates a commutative contract is necessarily a
gharar.
The opposite doesn’t necessarily hold. That is, not every gharar that
invalidates a commutative contract is necessarily a jahalah.

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