Wk 8-Islamic Finance Contracts - FM

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The differences between waad and aqad
Fauziah Mahat
Fichas por Fauziah Mahat, actualizado hace más de 1 año
Fauziah Mahat
Creado por Fauziah Mahat hace más de 7 años
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THE DIFFERENCES BETWEEN WAAD AND AQAD THE DIFFERENCES BETWEEN WAAD AND AQAD
WAAD It is a promise between one party to another. It is a unilateral contract. AQAD It is a contract between two parties. It is a bilateral contract.
WAAD The offer and acceptance of the offerer is known as a promise which connotes an expression of willingness of a person on a particular subject matter. AQAD The application of promise can be seen in several Islamic transactions contracts such as sale and purchase, murabaha, musyarakah, ijarah, takaful, etc.
WAAD The party who received the promised will bear the responsibility whatever promised given by the person who give the promise. AQAD Binding the 2 parties which have agreed, that is each party is bound to fulfil the responsibility which they have agreed earlier.
WAAD *Terms & Conditions are not well defined. AQAD Terms & conditions are fixed in details and specific (is well-defined)
WAAD The promise has no specific definition of its own however it can be explained as a commitment made by one person to another to undertake a verbal proposition made by someone. AQAD It is included when there is a contract upon both parties. The contract is legally binding upon the contracting parties once it fulfills all the requirements needed.
WAAD When the promised was not being fulfilled then penalty received is just a moral penalty. AQAD When the liability was not fulfilled, therefore the penalty received is suitable with the earlier contract agreed by both parties.
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