MAHYUDDIN KHALID

emkay@salam.uitm.edu.my

CONTENT
DEFINITION

EVIDENCES

PILLARS

TYPES

DEFINITION EVIDENCE PILLARS OF AL-WAKALAH TYPES OF AL-WAKALAH CONDITIONS OF AL-WAKALAH MODERN APPLICATION

CONDITIONS

APPLICATION

DEFINITION
Literally
DEFINITION

Agency, representation, proxy, mandate, authorization, delegation, empowerment etc.

EVIDENCES

Technically:
The appointment of someone to take over the appointers affairs on his/her behalf for the purpose of accomplishment of certain tasks

PILLARS

TYPES

CONDITIONS

APPLICATION

Wakalah implies a kind of delegation by a person of his business to act on his behalf. It is lawful if a person appoints another as his representative for selling or buying, letting or hiring, giving or taking a pledge for depositing or receiving a gift, for safe keeping, for making a compromise, and for giving an acquaintance and for making an admission etc.

EVIDENCE
Al-Quran
DEFINITION

EVIDENCES

PILLARS

Hadith:

The verse indicate the assigning of agents for zakat management (collection and distribution)
Reported by Urwah R.A that the prophet S.A.W gave him one gold Dinar to buy with it (be an agent for the Prophet S.A.W) a sheep but instead he managed to buy two sheep. He then sold one of it for one gold Dinar and then presented the prophet with both the sheep and one gold Dinar that he acquired. The prophet S.A.W prayed for him to be given blessings (barakah) in all his trade and transactions and mentioned that even if he sells solid soil, he will definitely gain profit in it. Reported by Abi Hurairah R.A to the effect that: the Prophet S.A.W had sent Umar R.A to be his agent in Zakat collection
(representative in zakat collections)

TYPES

CONDITIONS

APPLICATION

EVIDENCE
DEFINITION

EVIDENCES

Reported by Sulayman bin Yasar that: The prophet S.A.W sent Abu Rafi and a man of the Ansar to accept (Qabul)his S.A.W marriage to Maimunah binti al Harith on his S.A.W behalf while he was in Madinah before he had left for Hajj (representative in Marriage)

PILLARS

Ijma:
The ummah had came to a consensus on the legitimacy of Wakalah contract since there is a great need for it, and individuals are also not capable of catering and handling all his/her needs, matters and daily affairs on their own without having to resort for the help of other people. Hence, it is permitted because it is one of the types of cooperation on good deeds and fear of God ( Taawun Alal Birri Wa Taqwa ) encouraged in Islam.

TYPES

CONDITIONS

APPLICATION

PILLARS OF AL-WAKALAH
DEFINITION

1. Wakil
The authorized agent, representative, proxy, trustee

EVIDENCES

2. Muwakkil.
Authorizer, mandatory, client, principal

PILLARS

3. Muwakkal Bih
Things or subject matter that is being entrusted for, or the business deals involved

TYPES

CONDITIONS

4. Sighah
Ijab (Offer) Qabul (Acceptance)

APPLICATION

FLOWS OF AL-WAKALAH
DEFINITION Ijab (Offer)

EVIDENCES

PILLARS
Muwakkil. (Authorizer, mandatory, client, principal) Muwakkal Bih (Things or subject matter)

Wakil
(authorized agent, representative, proxy)

TYPES

CONDITIONS

APPLICATION Qabul (Acceptance)

TYPES OF AL-WAKALAH
DEFINITION

1.
EVIDENCES

Wakalah Mutlaqah

Unlimited Agency/ Unrestricted Wakalah A Wakalah contract that is not restricted to any conditions except for those that are permitted in Islam

PILLARS

TYPES

Not confined to certain circumstances or time limit.

2. Wakalah Muqayyadah Limited Agency/ Restricted Wakalah A Wakalah contract that is restricted or confined with certain conditions that are legitimized by Islam Bounded by special circumstances or time limit

CONDITIONS

APPLICATION

CONDITIONS OF AL-WAKALAH
Conditions related to contracting parties
DEFINITION

EVIDENCES

PILLARS

TYPES

CONDITIONS

APPLICATION

The agent must be someone that is capable of performing the responsibility and fulfill the minimum requirement (being sane, adult and smart) The authorizer has the freedom to terminate the contract or the service of the agent and the agent could also withdraw from the contract Except if the responsibility of the agent towards the other party is still pending or his obligation towards the other party has yet to be fulfilled. Principle should know the agent, either by name or physical appearance, vice versa. It is legal to entrust certain business dealings to an agent even if the authorizer is capable of performing the same deal himself. The Wakalah contract ends with the accomplishment of the entrusted tasks or mission

CONDITIONS OF AL-WAKALAH
Conditions related to the object of agency contract
DEFINITION EVIDENCES

PILLARS

TYPES

CONDITIONS

APPLICATION

The subject matter or business dealings must be clearly specified in the contract by the authorizer. The object of an agency contract should be eligible for legal authorization. It is not permissible to conduct Wakalah for physical prayers since the objective behind these prayers are to test and act as trials to the believers with the exception of certain prayers such as the Pilgrimage (Hajj), slaughtering animals for sacrifice (Qurban), distribution of Zakat, and fasting of Kafarah (on behalf of the dead) The entrusted agent will not be held responsible for any damage or disruption of the business deal except for cases of proven negligence or ignorance on part of the agent The agent is not permitted to act beyond what he was entrusted for by the authorizer in the first place except if it is an unlimited agency ( Wakalah Mutlaqah ).

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MODERN APPLICATION
DEFINITION

EVIDENCES

PILLARS

In the contemporary application, wakalah contract is widely used in structuring various Islamic banking, capital market and takaful fee-based products. Application of wakalah contract includes:
Wakalah bi al-istismar (agency for investment) Sukuk Letter of Credit (LC)

TYPES

CONDITIONS

APPLICATION

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END OF CHAPTER
DEFINITION

EVIDENCES

PILLARS

TYPES

CONDITIONS

APPLICATION

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