The Role of the Guarantee Condition in Islamic Contracts and Its Legal Effects on Transaction Risk Reduction

Abstract

The guarantee condition (shart-e zeman) in Islamic contracts has, in recent years, emerged as one of the most effective mechanisms for strengthening contractual obligations and managing transactional risk, gaining a prominent position in juristic–legal analyses and the structuring of modern contracts. The present study aims to examine the juristic nature of the guarantee condition, clarify its legal foundations within the Civil Code, and analyze its role in reducing transactional risk, thereby offering a coherent account of the functional dimensions of this legal institution. The research first examines the concept of guarantee and distinguishes it from other security mechanisms, including contractual suretyship, personal guarantee, and collateral arrangements. Subsequently, through an analysis of Articles 234–246 of the Civil Code and the prevailing opinions of Imami jurists, the framework governing the validity, limitations, and legal consequences of the guarantee condition is clarified. The findings indicate that the guarantee condition—particularly when formulated as a condition of result—can facilitate risk transfer, strengthen the creditor’s legal position, reduce the likelihood of default, and enhance predictability in contractual performance. Nevertheless, challenges remain, including ambiguity regarding the validity of guarantee conditions in fiduciary contracts, potential tension with the principle of fault-based liability, and certain juristic constraints, all of which underscore the need for clearer legislative regulation and precise contractual drafting. In the final section, the practical applications of the guarantee condition in sale contracts, lease agreements, civil partnerships, as well as financial and Islamic banking contracts are examined, and recommendations are proposed to enhance transactional efficiency and legal security based on this condition. The study concludes that, when properly structured and aligned with both juristic principles and legal norms, the guarantee condition can function as a central pillar of risk management in contemporary contractual relations.