2. CONTENT
DEFINITION
DEFINITION
EVIDENCE
EVIDENCES PILLARS OF AL-WAKALAH
TYPES OF AL-WAKALAH
PILLARS
CONDITIONS OF AL-WAKALAH
TYPES
MODERN APPLICATION
CONDITIONS
APPLICATION
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3. DEFINITION
Literally
DEFINITION Agency, representation, proxy, mandate, authorization, deleg
ation, empowerment etc.
EVIDENCES Technically:
The appointment of someone to take over the appointer’s
PILLARS
affairs on his/her behalf for the purpose of accomplishment
of certain tasks
TYPES
Wakalah implies a kind of delegation by a person of his
business to act on his behalf.
CONDITIONS
It is lawful if a person appoints another as his
representative for selling or buying, letting or
APPLICATION 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.
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4. EVIDENCE
Al-Quran
DEFINITION .
EVIDENCES
The verse indicate the assigning of agents for zakat
management (collection and distribution)
PILLARS Hadith:
Reported by Urwah R.A that the prophet S.A.W gave him
TYPES
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
CONDITIONS
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
APPLICATION
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)
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5. EVIDENCE
Reported by Sulayman bin Yasar that: The prophet
DEFINITION S.A.W sent Abu Rafi’ and a man of the Ansar to accept
(Qabul)his S.A.W marriage to Maimunah binti al–
EVIDENCES
Harith on his S.A.W behalf while he was in Madinah
before he had left for Hajj (representative in Marriage)
PILLARS
Ijma’:
TYPES 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
CONDITIONS
handling all his/her needs, matters and daily affairs on
their own without having to resort for the help of other
APPLICATION people.
Hence, it is permitted because it is one of the types of
cooperation on good deeds and fear of God ( Ta’awun
Alal Birri Wa Taqwa ) encouraged in Islam.
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6. PILLARS OF AL-WAKALAH
1. Wakil
DEFINITION
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
TYPES the business deals involved
4. Sighah
CONDITIONS
Ijab (Offer)
APPLICATION
Qabul (Acceptance)
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7. FLOWS OF AL-WAKALAH
DEFINITION Ijab (Offer)
EVIDENCES
PILLARS
Wakil
Muwakkil. Muwakkal Bih
(Authorizer, mandatory, c (authorized
TYPES (Things or
lient, principal) agent, representative, prox
subject matter)
y)
CONDITIONS
APPLICATION
Qabul (Acceptance)
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8. TYPES OF AL-WAKALAH
DEFINITION
1. Wakalah Mutlaqah Unlimited Agency/ Unrestricted Wakalah
EVIDENCES
A Wakalah contract that is not restricted to
any conditions except for those that are
PILLARS permitted in Islam
Not confined to certain circumstances or time
TYPES limit.
2. Wakalah Muqayyadah Limited Agency/ Restricted Wakalah
CONDITIONS A Wakalah contract that is restricted or
confined with certain conditions that are
legitimized by Islam
APPLICATION
Bounded by special circumstances or time
limit
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9. CONDITIONS OF AL-WAKALAH
Conditions related to contracting parties
DEFINITION The agent must be someone that is capable of performing the
responsibility and fulfill the minimum requirement (being
EVIDENCES
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
PILLARS from the contract
Except if the responsibility of the agent towards the other
TYPES 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
CONDITIONS
appearance, vice versa.
It is legal to entrust certain business dealings to an agent even
APPLICATION if the authorizer is capable of performing the same deal
himself.
The Wakalah contract ends with the accomplishment of the
entrusted tasks or mission
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10. CONDITIONS OF AL-WAKALAH
Conditions related to the object of agency contract
DEFINITION
The subject matter or business dealings must be clearly
specified in the contract by the authorizer.
EVIDENCES The object of an agency contract should be eligible for legal
authorization. It is not permissible to conduct Wakalah for
PILLARS 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
TYPES
animals for sacrifice (Qurban), distribution of Zakat, and
fasting of Kafarah (on behalf of the dead)
CONDITIONS
The entrusted agent will not be held responsible for any
damage or disruption of the business deal except for cases of
APPLICATION 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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11. MODERN APPLICATION
In the contemporary application, wakalah contract
DEFINITION
is widely used in structuring various Islamic
banking, capital market and takaful fee-based
EVIDENCES
products.
PILLARS Application of wakalah contract includes:
Wakalah bi al-istismar (agency for investment)
TYPES Sukuk
Letter of Credit (LC)
CONDITIONS
APPLICATION
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12. END OF CHAPTER
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
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