Mu awadah ala al-daman

Definition of "Mu awadah ala al-daman"

Compensation for providing a guarantee. A type of contract where a person/agency agrees to act as a guarantor for a certain thing or person and charges a fee for providing such guarantee. A common example is a letter of guarantee by a bank for a certain fee issued in favour of a person or firm, saying, in case the person or the firm does not fulfil a certain obligation, the bank would do.