Contract Uncertainty and Deliverability Review Checklist

Contract uncertainty is not resolved by adding an Islamic label. Parties need clear evidence about the subject matter, price, delivery, authority, obligations and remedies so a qualified reviewer can distinguish ordinary commercial risk from prohibited uncertainty.

Educational information only: This is not a Shariah ruling or legal opinion. Review the signed contract and actual transaction with qualified professionals.

1. Identify the contract and parties

Record the agreement, version, date, legal parties and representatives. Confirm authority to sign and perform.

2. Define the subject matter

Describe the asset, service or right precisely, including quantity, quality, specification and condition. Attach schedules and technical documents.

3. Establish ownership or control

Confirm who owns or controls the subject matter before sale or delivery. Record any agency, consignment or third-party interest.

4. Fix the price or method

State the amount, currency, taxes and objective calculation method. Identify discretionary adjustments and who controls them.

5. Record payment obligations

Capture deposits, instalments, milestones, due dates and payment conditions. Reconcile the schedule to invoices and cash flows.

6. Define delivery

Record location, date, method, acceptance test and evidence of delivery. Identify who bears risk before and after handover.

7. Test availability and capacity

Confirm the asset exists or the service can be performed. Record dependencies, permits, stock or capability needed for delivery.

8. Clarify conditions

List conditions precedent, approvals and events that activate or end obligations. Avoid undefined terms such as “when possible”.

9. Allocate ordinary risk

Document loss, damage, delay and insurance responsibilities. Commercial risk should be visible rather than shifted through ambiguous clauses.

10. Review cancellation rights

State notice, refund, termination and cure processes. Record the treatment of work completed and costs incurred.

11. Examine default remedies

Identify damages, penalties, repossession, security and dispute procedures. Refer late-payment and compensation terms for legal and Shariah review.

12. Control unilateral discretion

Flag clauses allowing one party to change price, specification, timing or obligations alone. Record any objective limit or consent requirement.

13. Resolve document conflicts

Compare the agreement, quotation, order, invoice and marketing statements. State which document prevails and correct material differences.

14. Test practical deliverability

Walk through a normal transaction and a failure scenario. Verify that staff, systems, inventory and evidence can perform the written promise.

15. Maintain the uncertainty register

• Clause and page reference

• Unclear fact or obligation

• Commercial effect

• Evidence or amendment required

• Legal and Shariah reviewer

Useful official starting points include the Consumer Protection Act, the Electronic Communications and Transactions Act and the National Credit Regulator where credit is involved.

The completed review should show exactly what each party gives, receives and risks, while leaving the final Gharar conclusion to a qualified Shariah authority.