Islamic Contract Law: Shariah Terms Related to

‘Aqd

Several Shariah terms are closely related to ‘aqd (contract). They may appear similar because they all involve legal or moral relationships between parties, but they are not the same.

The main related terms are:

• Tasarruf — action or legal disposition
• Wa‘d — promise
• Muwa‘adah — mutual promise
• Iltizam — obligation

1.

Tasarruf

— Action or Legal Disposition

Tasarruf refers to an act or conduct that produces a legal effect under Shariah.

It is broader than a contract because a legal effect may arise even without an agreement between two parties.

Examples

• Selling property
• Giving a gift
• Making a waqf
• Making a wasiyyah
• Releasing someone from a debt

Some forms of tasarruf involve a contract, while others may be carried out by one person alone.

Example

Ahmad declares that a piece of land is permanently dedicated as waqf.

This is a legal action that creates consequences, even though it is not necessarily based on an exchange of offer and acceptance like a normal sale contract.

Tasarruf = a broad legal act that may create legal consequences.

2.

Wa‘d

— Promise

Wa‘d means a promise made by one person to another person to do something in the future.

It is normally unilateral, meaning only one party makes the promise.

Example

Ahmad tells Ali:

“I promise that I will sell you my car next month for RM40,000.”

At this stage:

• Ahmad has made a promise.
• Ali has not yet purchased the car.
• Ownership has not yet transferred.

Therefore:

Wa‘d is not the same as the actual sale contract.

The future sale would require the proper formation of the contract when the parties proceed with the transaction.

Easy Meaning

Wa‘d = one-sided promise about a future action.

3.

Muwa‘adah

— Mutual Promise

Muwa‘adah means two parties promise each other that they will enter into a transaction or perform something in the future.

Unlike wa‘d, the promise comes from both parties.

Example

Ahmad says:

“I promise to sell you my car next month.”

Ali replies:

“And I promise to buy it from you next month.”

This is a muwa‘adah because both parties have made promises.

However, the mutual promise is conceptually different from the actual sale contract.

At this stage:

• Ahmad has promised to sell.
• Ali has promised to buy.
• The final sale contract may still need to be concluded later.

Muwa‘adah = two-sided or mutual promise.

Difference Between

Wa‘d

and

Muwa‘adah

The easiest way to distinguish them is:

Wa‘d = one party promises.

Muwa‘adah = both parties promise.

Example

Ahmad alone promises to sell his house to Ali next month.

Wa‘d

Ahmad promises to sell, and Ali promises to buy.

Muwa‘adah

4.

Iltizam

— Obligation

Iltizam means an obligation or responsibility that a person is required to fulfil.

The obligation may arise from:

• A contract
• A promise in certain circumstances
• Shariah rules
• Liability for damage
• Another recognised legal reason

Example from a Sale Contract

Ahmad sells a laptop to Ali for RM2,000.

Once the valid sale is concluded:

• Ahmad has an obligation to deliver the laptop.
• Ali has an obligation to pay RM2,000.

These obligations are forms of iltizam.

Iltizam = a duty or responsibility that must be fulfilled.

Example from Debt

Ali borrows RM1,000 from Ahmad.

Ali has an obligation to repay RM1,000.

That repayment duty is:

Iltizam

How These Terms Relate to

‘Aqd

‘Aqd is a contract formed through the agreement of the contracting parties.

The related concepts are broader or different:

Tasarruf

A legal act that creates a legal effect.

Wa‘d

A one-sided promise to do something in the future.

Muwa‘adah

A mutual promise by two parties regarding a future transaction.

Iltizam

The obligation or duty that a person must fulfil.

‘Aqd

The contract itself, usually formed through offer and acceptance.

One Example Connecting All the Terms

Suppose Ahmad wants to sell a car to Ali.

Stage 1 —

Wa‘d

Ahmad says:

“I promise to sell you my car next month.”

This is a wa‘d because only Ahmad promises.

Stage 2 —

Muwa‘adah

Ali replies:

“I also promise that I will buy it next month.”

Now both parties have made promises.

This is muwa‘adah.

Stage 3 —

‘Aqd

Next month Ahmad says:

“I sell you this car for RM40,000.”

Ali replies:

“I accept.”

The sale contract is now concluded.

This is the ‘aqd.

Stage 4 —

Iltizam

After the contract:

• Ahmad must deliver the car.
• Ali must pay RM40,000.

These duties are their iltizam.

The whole transaction and its legal consequences may also fall within the broader idea of tasarruf.

Simple Summary

Tasarruf = legal action or disposition

Wa‘d = one-sided promise

Muwa‘adah = mutual promise

Iltizam = obligation or duty

‘Aqd = actual contract formed between the parties

Easy Way to Remember

Promise by one → Wa‘d

Promise by both → Muwa‘adah

Actual agreement → ‘Aqd

Duty created → Iltizam

Broader legal act → Tasarruf

1. Tasarruf — Action or Legal Disposition Tasarruf refers to an act or conduct that produces a legal effect under Shariah. It is broader than a contract because a legal effect may arise even without an agreement between two parties. Examples  Selling property Giving a gift Making a waqf Making a wasiyyah Releasing someone from a debt  Some forms of tasarruf involve a contract, while others may be carried out by one person alone. Example Ahmad declares that a piece of land is permanently dedicated as waqf. This is a legal action that creates consequences, even though it is not necessarily based on an exchange of offer and acceptance like a normal sale contract. Tasarruf = a broad legal act that may create legal consequences.

2. Wa‘d — Promise Wa‘d means a promise made by one person to another person to do something in the future. It is normally unilateral, meaning only one party makes the promise. Example Ahmad tells Ali: “I promise that I will sell you my car next month for RM40,000.” At this stage:  Ahmad has made a promise. Ali has not yet purchased the car. Ownership has not yet transferred.  Therefore: Wa‘d is not the same as the actual sale contract. The future sale would require the proper formation of the contract when the parties proceed with the transaction. Easy Meaning Wa‘d = one-sided promise about a future action.

3. Muwa‘adah — Mutual Promise Muwa‘adah means two parties promise each other that they will enter into a transaction or perform something in the future. Unlike wa‘d, the promise comes from both parties. Example Ahmad says: “I promise to sell you my car next month.” Ali replies: “And I promise to buy it from you next month.” This is a muwa‘adah because both parties have made promises. However, the mutual promise is conceptually different from the actual sale contract. At this stage:  Ahmad has promised to sell. Ali has promised to buy. The final sale contract may still need to be concluded later.  Muwa‘adah = two-sided or mutual promise.

Difference Between Wa‘d and Muwa‘adah The easiest way to distinguish them is: Wa‘d = one party promises.

Muwa‘adah = both parties promise. Example Ahmad alone promises to sell his house to Ali next month. Wa‘d Ahmad promises to sell, and Ali promises to buy. Muwa‘adah

4. Iltizam — Obligation Iltizam means an obligation or responsibility that a person is required to fulfil. The obligation may arise from:  A contract A promise in certain circumstances Shariah rules Liability for damage Another recognised legal reason  Example from a Sale Contract Ahmad sells a laptop to Ali for RM2,000. Once the valid sale is concluded:  Ahmad has an obligation to deliver the laptop. Ali has an obligation to pay RM2,000.  These obligations are forms of iltizam. Iltizam = a duty or responsibility that must be fulfilled.

Example from Debt Ali borrows RM1,000 from Ahmad. Ali has an obligation to repay RM1,000. That repayment duty is: Iltizam

How These Terms Relate to ‘Aqd ‘Aqd is a contract formed through the agreement of the contracting parties. The related concepts are broader or different: Tasarruf A legal act that creates a legal effect. Wa‘d A one-sided promise to do something in the future. Muwa‘adah A mutual promise by two parties regarding a future transaction. Iltizam The obligation or duty that a person must fulfil. ‘Aqd The contract itself, usually formed through offer and acceptance.

One Example Connecting All the Terms Suppose Ahmad wants to sell a car to Ali. Stage 1 — Wa‘d Ahmad says: “I promise to sell you my car next month.” This is a wa‘d because only Ahmad promises. Stage 2 — Muwa‘adah Ali replies: “I also promise that I will buy it next month.” Now both parties have made promises. This is muwa‘adah. Stage 3 — ‘Aqd Next month Ahmad says: “I sell you this car for RM40,000.” Ali replies: “I accept.” The sale contract is now concluded. This is the ‘aqd. Stage 4 — Iltizam After the contract:  Ahmad must deliver the car. Ali must pay RM40,000.  These duties are their iltizam. The whole transaction and its legal consequences may also fall within the broader idea of tasarruf.

Simple Summary Tasarruf = legal action or disposition

Wa‘d = one-sided promise

Muwa‘adah = mutual promise

Iltizam = obligation or duty

‘Aqd = actual contract formed between the parties Easy Way to Remember Promise by one → Wa‘d

Promise by both → Muwa‘adah

Actual agreement → ‘Aqd

Duty created → Iltizam

Broader legal act → Tasarruf