Surety, An obligation in addition to an existing obligation in respect of a demand for something. Lit: responsibility or suretyship. It is a covenant or pledge given. Legally, a third party becomes surety for the payment of a debt of another. Suretyship in Shari’ah is the creation of an additional liability with regard to a claim, not to the debt or the assumption only of a liability and not of the debt. A person providing surety or a guarantor is known as Kafil. Islamic banks use Kafalah to issue guarantees for their business customers, for example, the bank may guarantee the customer’s standing to facilitate any business endeavours that may require such guarantees, or the bank may give a surety to the owner of a ship or the shipping agent, to discharge goods imported by a customer on arrival of the carrying ship, pending receipt of the original shipping documents before the customer can take delivery of the imported goods. Also, known as Kifalah.
Kast Al Takaful
Takaful contribution (premium).
Misleading marketing; pursuing unaware and simple clients by over-projecting the quality of a commodity.
A levy on land use.
A kind of gharar. Khatar is involved if the liability of any of the parties to a contract is uncertain or contingent, delivery of one of the goods of exchange is not in the control of any party or the payment from one side is uncertain.
Good, beneficial or well-being.
Lit: option, choice. The option to rescind or cancel a sales contract in certain conditions, for example a defect in the goods. The jurists have traditionally recognised different types of khiyar, including Khiyar alru-yah/roy'at, khiyar al-aib/ayb,khiyar al-shart, khiyar al-majlis.
An option of dissolving the contract on discovery of defect.
An option of the buyer to cancel the contract on knowing that the seller has sold the goods at price far higher than the market price.
An option where the seller has the right to cancel the contract if the buyer does not make payment by a certain agreed date.
Option to rescind a sale contract after physical inspection of the object of sale.
An option to cancel a previous agreed sale within a specific number of days.
An option of determination, where a person having purchased two or three things of the same kind, stipulates a period to make selection out of the purchased stock.
An option to be exercised due to the absence of a desired quality in the goods.
Khiyar-e-Majlis Khiyar al-Majlis
An option whereby the parties have right to withdraw from a contract so long as the parties do not leave the place of contract.