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.