POLITEKNIK SEBERANG PERAI
Meaning of contract (Sighah), the
elements of contract, different kinds
of contract forms, the condition
necessary for the form, the
classifications of contract according
to its nature such as the Unilateral
contract, Bilateral contract, Quasi
contract and the classification of
contract according to Legal
6.1 Identify types of contract according to their nature
6.1.1 Describe nature of the contract
a. al aqd Infiradi (Unilateral contract)
b. al Aqd al Thuna’i (Bilateral contract)
c. Shibh al-Aqd (Quasi Contract)
6.1.2 Classify the contract according to Legal
a. Sahih (Valid Contract)
b. Fasid (Invalid or Deficient Contract)
c. Batil (Void Contract)
d. Lazim (Binding Contract)
e. Nafidh (Enforceable Contract)
f. Mawquf (Withheld Contract)
CLASIFICATION BASED ON
NATURE OF CONTRACT
Classification of contracts according to the
nature of the contract in conceptually divided
into 3 main categories;
(AL AQD INFIRADI)
A unilateral contract is a form of promise made by one party
with an intention and expectation that the other party to the
contract would accept it.
This contract is gratuitous in character and does not require
the consent of the recipient.
In other words, a unilateral promise binds only the person
who make it until it is accepted by others, and once it is
accepted, both party are equally bound by the contract.
Unilateral contract comprises transaction in favour of the
recipient such as gift (hibah), rebate on offset of a debt
(ibra’), will (wasiyyat), qardh hassan and etc.
A unilateral contracts is approved by the Jamhur Fuqaha amongst
them are Maliki, Shafii, and Hanbali, based on the event between
Yusuf and his brother as proven by the al-Quran;
“They said: ‘ We miss the great beaker of the king: for him who
produces it, is (the reward of) a camel load; I will be bound by it.”
The idea of a unilateral contract is opposed by the Hanafi School of
Law, because it revolves around the element of al-Gharar (Excessive
Example: a person approaches a real estate agent and ask him to
find a house for him for which he will pay him one month’s rent as
commission. The agent finds a house as required which the offeror
agrees to rent. The agent is entitled to his commission.
The key here is that promise by offeror to anyone from the general
public to undertake a task and the promise is made to an identified
(AL AQD AL THUNA’I)
A bilateral contract requires at least two parties in which one
party should make a proposal (offer) and the other should
The intention of both parties must coincide and the
declaration must relate to the same subject matter.
The object of the contract must be able to produce a legal
and beneficial result for both the contracting parties
The main idea of a bilateral contract in Islamic law is that it
establishes a legal relationship, arising from the mutual
consent of the willingness of at least two parties in dealing
with each other, in respect of certain right and obligation
The minds of both parties must coincide (agree); that is, their
declaration must relate to the same subject matter.
The object of the contract must be able to produce a legal and
beneficial result for both the contracting parties.
The dominant idea of bilateral contract in Islamic law is that it
establishes a legal relationship, arising from the mutual consent of
the minds of at least two parties in dealing with each other, in
respect of certain rights and obligations thereof.
For example, when A sells or disposes an object to B, the former
consents to pass on his proprietary rights therein to the latter, who
consents to take the property with whatever obligations might be
incidental thereto, such as the liability to past taxes if the subject
matter of the transaction is land, or to take care of and to feed if the
thing sold or disposed is an animal, and to pay the price in the case
of a sale.
Example: Azrul sells his car to Badrul for RM60000 on cash
basis. In this case, Azrul consents to sell his car to Badrul,
who consents to buy the car with an obligation to pay the
price in cash.
The differentiation between bilateral and unilateral contracts
depend on what the offeree must do to accept the offer and
to bind the offeror to a contract.
If to bind the offeror, the offeree must only promise to
perform, the contract is a unilateral contract. Hence the
bilateral contract is a promise for a promise. The contract
come to existence the moment the promises are exchanged.
A quasi contract by nature is not a contract. However, the implication
gives rise to an obligation similar to that of the contract.
A quasi contract is an obligation, which does not originate from a
proper verbal agreement as in the law of contract or tort.
A quasi contract has little or no affinity with a contract.
As an illustration, an action to recover the money paid by mistake: if
the innocent party mistakenly interprets the facts, pays to another
party a sum of money which he does not really owe, the law being
just, will require the wrong receiver of the money to restore it.
However, this obligation not based upon consent.
Therefore, in a quasi contract, the obligation is enforceable using the
shariah principle, since it is a matter of restoring the rights of others.
Islamic laws sanction this because an appropriation can only be
recognised if something is exacted through a proper transaction with
Valid contract (sahih)
A valid contract in shariah as a contract in which its
essence and attributes are according to the shariah
and which subsequently has a legal effect of
enforceability. In other words, a valid contract binds
the contracting parties equally. There are two scale
devised to evaluate the degree of a valid contract. In a
broader sense, a valid contract, enforceable by the
shariah, is presumed if its origin and attributes (Asl
and Wasf) are in accordance with shariah.
The nature of a valid contract is that there must be
contracting parties who have legal capacity and
express their agreement in terms of a sound Ijab
(offer) and Qabul (acceptance) on a particular subject
matter recognized by the shariah. In addition, for a
contract to be valid there must be an exchange of
valuable consideration with a sincere intention,
required from both parties, to create a legal relation.
For a contract to be valid, the three
condition should be met:
All elements required by law must be
The additional condition must be
The purpose of the contract and its
subject matter must be in compliance
with shariah principles.
Invalid or Deficient
A fasid contract is an agreement, which is
lawful in its substance but unlawful in its
The substance of an agreement refers to
proposal (ijab), acceptance (qabul), and the
subject matter (mahal al aqad).
The description of an agreement refers to
characteristics of a contract, e.g. the price of
the subject matter.
If an agreement of a sale for a definite article is
concluded by proposal and acceptance but the
price is not settled, the agreement would be
Fasid, although it is enforceable (mun’aqad) as
far as its substance is concerned.
Void contract (batil)
A void contract is an agreement in which
both its substance and descriptions are
not in compliance with shariah.
A void agreement is illegal in its origin
and attributes. In other words, the
necessary elements and necessary
conditions are against the Islamic law.
Islamic jurists have unanimous opinion
that anything which is forbidden by
shariah, is not tradable and hence,
cannot become the consideration or
object of a contract.
Example: a contract will be void if A and
B agree on a liqour deal.
An agreement in which both its substance
and description are unlawful in the sight of
shariah. For example contracts of sale of fish
in the sea or birds in the sky are uncertain
and, therefore the contract is batil on the
ground of Gharar.
Another example of a batil contract is the
agreement of sale concluded by a lunatic or a
minor or a prodigal. Such a contract is void
because it does not fulfill the requirement
substance of an agreement, in which the offer
and acceptance must be done by a sane,
major or sound minded person.
Similarly an agreement to sell a dead body or
alcohol is not lawful, for it involves the
exchange of mal for something having no
legal value (ghayr mutaqawwim).
Binding contract (lazim)
Is a sound contract without any defect
either in it substance or descriptions. It
is classified into two:
A BINDING CONTRACT is a sound
contract without ant defect either in
its substance or description. The
Majallah distinguishes between a
Lazim (binding) and Ghayr Lazim
(non-binding) contract in Articles
114-15 respectively. Thus a Bai’Lazim
is a Bai’ Nafidh (enforceable) without
any option. But a Ghayr Lazim is a
contract in which an option is found.
irrevocable lazim contract are
those where the parties shall not
have any right to revoke at any
stage of the contract if such
contract is concluded by mutual
consent of the contracting parties.
Example: contract of marriage or
any other bilateral contract. In the
contract of a marriage, there is no
revocation by either party once it
is concluded, except by a talaq
pronounced by the husband.
CONTRACTS: under revocable
contract, the right to rescind can be
exercised by either party without the
consent of the other party. There are
two reasons due to which a contract
1)The nature of the contract allows
independence to both parties like
agency (wakalah), partnership
(sharikah) and etc.
2) With an option that was stipulated in
the contract that prevent it from
Enforceable Contract (Nafidh)
Nafidh is an agreement, which does
not involve any right of the third party.
This contract should not admit delay
and must give rise to its effect
It is of two types: lazim (binding) and
ghair lazim (non-binding).
The lazim is a contract of sale that has no
options (to rescind) for any of the parties.
The ghair lazim is a contract of sale that may
have at least one option for any of the parties.
Withheld Contract (mawquf)
A mawquf contract is an agreement in which
the substance and the description are lawful,
but is concluded with the consent of a party
who does not own the subject matter of the
The mawquf contract as a sale is dependent
on the right of another like the contract of
fuduli. Fuduli means the catalyst or someone
who make the disposition of property without
the consent of its owner or without the
sanction of shariah.
Thus the legal consequences of a mawquf
contract is pending until it is ratified by the
owner on behalf of whom the fuduli
concludes the contract.
contract is an agreement in which the
substance and the description are lawful, but is
concluded with the consent of a party who does
not own can be affected unless the goods are in
existence at the time of sale with a condition
that goods are defined and the date of delivery
As example, RM 10,000 paid in advance for a
car to be delivered on a certain date.
This is a kind of sale where a commodity is
transacted before it comes into existence. In
other words to order a producer to produce a
specific commodity for the purchaser. The rules
to be observed are that the price is fixed with
the consent of the parties and that the
necessary specification of the commodity is fully
settled between them.