AL-WAKALAH

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AL-WAKALAH

  1. 1. MAHYUDDIN KHALID  emkay@salam.uitm.edu.my
  2. 2. CONTENT  DEFINITION DEFINITION  EVIDENCE EVIDENCES  PILLARS OF AL-WAKALAH  TYPES OF AL-WAKALAH PILLARS  CONDITIONS OF AL-WAKALAH TYPES  MODERN APPLICATIONCONDITIONSAPPLICATION 2
  3. 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 orAPPLICATION 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. 3
  4. 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 presentedCONDITIONS 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 andAPPLICATION 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) 4
  5. 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 andCONDITIONS handling all his/her needs, matters and daily affairs on their own without having to resort for the help of otherAPPLICATION 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. 5
  6. 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. SighahCONDITIONS  Ijab (Offer)APPLICATION  Qabul (Acceptance) 6
  7. 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)CONDITIONSAPPLICATION Qabul (Acceptance) 7
  8. 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 WakalahCONDITIONS A Wakalah contract that is restricted or confined with certain conditions that are legitimized by IslamAPPLICATION Bounded by special circumstances or time limit 8
  9. 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 physicalCONDITIONS appearance, vice versa.  It is legal to entrust certain business dealings to an agent evenAPPLICATION if the authorizer is capable of performing the same deal himself.  The Wakalah contract ends with the accomplishment of the entrusted tasks or mission 9
  10. 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 ofAPPLICATION 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 ). 10
  11. 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)CONDITIONSAPPLICATION 11
  12. 12. END OF CHAPTER DEFINITION EVIDENCES PILLARS TYPES CONDITIONSAPPLICATION 12

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