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Islamic Contract Law vs Malaysian Law vs English Law 

1. Basic Concept of Contract
  • Islamic Law (ʿAqd)
    • Broad concept
    • Includes:
      • Bilateral agreements
      • Unilateral acts
    • Focus on intention and obligation
 
  • Malaysian Law
    • Based on Contracts Act 1950
    • Contract = agreement + enforceability
    • Codified (written law)
 
  • English Law
    • Common law system
    • Contract requires:
      • Agreement
      • Consideration
      • Intention to create legal relations


2. Formation of Contract
  • Islamic Law
    • Offer (ijāb) + acceptance (qabūl)
    • In some cases:
      • Only one declaration needed (unilateral)
 
  • Malaysian Law
    • Offer + acceptance required
    • Must also include:
      • Consideration
      • Intention
 
  • English Law
    • Same as Malaysian law:
      • Offer
      • Acceptance
      • Consideration
      • Intention


3. Treatment of Unilateral Acts
  • Islamic Law
    • ✅ Recognised and binding
    • No acceptance required in some cases
    • Examples:
      • Debt waiver
      • Waqf
      • Ṭalāq
 
  • Malaysian Law
    • ❌ Generally not contracts
    • Only valid if:
      • Supported by consideration
      • Or structured legally
 
  • English Law
    • ❌ Same general rule as Malaysia
    • Exception:
      • Unilateral contracts (require performance as acceptance)


4. Role of Consideration
  • Islamic Law
    • ❌ Not required
    • Focus on:
      • Lawful subject matter
      • Mutual consent (or valid declaration)
 
  • Malaysian Law
    • ✅ Essential element
    • Must be:
      • Something of value exchanged
 
  • English Law
    • ✅ Essential element
    • Same principle:
      • “No consideration, no contract”


5. Legal Nature and Approach
  • Islamic Law
    • Principle-based
    • Flexible
    • Covers:
      • Legal, social, and moral obligations
 
  • Malaysian Law
    • Statutory (written law)
    • Influenced by English law
    • More structured
 
  • English Law
    • Case law (judicial decisions)
    • Technical and formal
    • Strong emphasis on legal rules


6. Practical Application
  • Islamic Law
    • Used in:
      • Islamic finance
      • Shariah-compliant transactions
 
  • Malaysian Law
    • Applied in:
      • Civil courts
    • Works alongside:
      • Shariah law (dual system)
 
  • English Law
    • Widely used in:
      • International commercial contracts
      • Global financial transactions


Final Comparative Insight
  • Islamic Law
    • Broadest scope
    • Recognises both bilateral and unilateral obligations
  • Malaysian Law
    • Middle position
    • Follows English principles but codified in statute
  • English Law
    • Most strict and technical
    • Requires consideration and formal structure


One-Line Summary
  • Islamic law = flexible and principle-based
  • Malaysian law = codified version of common law
  • English law = formal, structured, and consideration-based




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