Status and implications of promise (wa’d) in contemporary Islamic banking

Abdullah, Nurdianawati Irwani (2010) Status and implications of promise (wa’d) in contemporary Islamic banking. Humanomics, International Journal of System and Ethics, 26 (2). pp. 84-98. ISSN 0828-8666

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Abstract

Wa’ad or promise refers to undertaking by one party to do or not to do certain actions in future. Unlike a normal contract or `aqd, the rules governing wa`ad are less stringent as it is merely a promise thus is not binding. Under Shari’ah, due to the unilateral nature of the promise, the details of it are not as carved in stone as any other contract. The details such as time of delivery, the price, terms of payment and goods specific description are not as strict as applied in other contracts. Because of its flexibility, the wa’ad is now being noticed as a key alternative in structuring a lot of substitute products of a conventional bank. It is expected that the contract will grow more prominent in the next few years as demand for easy and flexible products increased. This paper, therefore attempts to analyze the status of promise from both Islamic and common law perspectives. Some illustrations of contemporary financial products structured based on wa`ad principle are discussed to shed some lights in understanding the issues surrounded the practice.

Item Type:	Article (Journal)
Additional Information:	3677/3079
Uncontrolled Keywords:	Banking, Civil law, Contract law, Islam, Law enforcement
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking K Law > KBP Islamic Law K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Associate Professor Dr. NURDIANAWATI IRWANI ABDULLAH
Date Deposited:	07 Oct 2011 10:23
Last Modified:	30 Apr 2012 08:35
URI:	http://irep.iium.edu.my/id/eprint/3079

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