'Aqd (Contract)

Literally: 'aqada means to tightly bind, knot, combine, make stable and permanent.

Technically: there are two meanings: general: the intention to do, regardless of whether the act results from an individual will or requires two wills to bring it into existence, like a sale, lease, agency or mortgage. This connotation is the same as commitment to do something. The specific meaning is: linkage of an offer and its acceptance in a legal manner, such that its consequences take effect upon it subject.

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'Ard (Commodity)

Literally: a baggage or commercial good. Everything is an 'ard except money, which is called 'ayn.

Technically: is defined by jurists to be any property other than money; it includes plants, animals, real estate, and all other types of property. Some said: goods that are not sold by weight or volume, excluding animals and real estate. Other said: it is everything prepared for purchase and sale to make a profit, even including cash.

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Bay' (Sale)

Literally: an exchange of property for property or an exchange without qualification.

Technically: the exchange of any property of value (i.e, lawful] (mal mutaqawwam) for another such item so that ownership of each item is transferred to the other party or to permanently exchange the ownership of a tangible asset or a permissible benefit for financial compensation.

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Daman (Guarantee)

Literally: daman: to put something into something that contains it. Standing surety is derived from this meaning because the guarantor encompasses the obligor's liability and adds it to his own.

Technically: daman is used by jurists to mean standing surety (kafalah). Therefore, they defined guarantee as: merging of one liability with another in respect or demand for performance of an obligation. Alternatively: to assume responsibility for the financial obligation of another, or to ensure the appearance of the person liable for it, or of a guaranteed commodity. Jurists also use it to refer to an unrestricted commitment; for instance, to undertake responsibility for the compensation of a destroyed tangible asset. This is what in meant the hadith "[Entitlement to] profit goes with responsibility". It also includes a guarantee to do the stipulated work in a labour partnership and to entitle the financial compensation in a credit partnership. The technical meaning of daman is more general that that of kafalah. The types of daman vary depending on the financial transaction to which it is applied.

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Darar (Damage, harm)

The Arabic word means harm as opposed to what is beneficial and it means to harm someone. Technically it is the same sense. One maxim says harm should be removed.

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Darurah (Necessity)

Technically it is a situation in which a person is obliged to resort to the unlawful, and if he does not do that he will be in great danger or even lose his life. Jurists have made rules for such situations such as: Necessity allows the unlawful.

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Dayn (Debt)

Literally: dayn is any future liability on a person, without it being in any particular form, money or something else.

Technically: jurists use the term 'debt' in two sense: general: an absolute obligatory right for which a person is liable in the future; private (according to the majority of jurists): any monetary obligation on a person that is incurred due to an exchange transaction, damage to property, load taken, personal injury, or the rights of Allah, such as zakah.

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Faqir (Destitute)

Literally: poverty (faqr) is a cleft in something; and a faqir is a person with a broken vertebra.

Technically: a faqir (destitute) is one with no wealth or vocation to suffice any of his needs. This could be a result of a debilitating illness, but not necessarily.

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Fasakh (Revocation)

Literally: removal, elimination, invalidation and separation.

Technically: elimination of all of a contract's rulings, effects and consideration. Some said: revocation of a contract due to the wish of one or both of the contractors or the decision of a judge. Some said: invalidation of a contract in the first place or prevention of its continuity; it usually happens in invalid or non-binding contracts.

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Source: ISRA Compendium for Islamic Financial Terms Arabic - English, 1st edition, Kuala Lumpur: International Shariah Research Academy for Islamic Finance (ISRA), 2010