Muqasa / Muqasah

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1. What is Muqasa?

Offsetting a debt using a counter-transaction. It is often used for the settlement of identical obligations between a creditor and a debtor (two people owe each other the same amount).  Muqasa is usually used to offset currency debts, commodity debts and Usufruct.

2. Types of Muqasa:

  • Muqasa al-Ittifaqiyah: It is based on a voluntary and mutual consent of the contracting parties. 
  • Muqasa al-Qanuniyah: It is a legal offset that is imposed on the contracting parties by the law.
  • Muqasa al-Talabiyah: It is an offset based on the demand of one of the contracting parties.

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