AL-WAKALAH

MAHYUDDIN KHALID [email protected]

AL-WAKALAH

لة لوكا ا

DEFINITION

EVIDENCES

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CONDITIONS

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DEFINITION EVIDENCE PILLARS OF AL-WAKALAH TYPES OF AL-WAKALAH CONDITIONS OF AL-WAKALAH MODERN APPLICATION

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Literally Agency, representation, proxy, mandate, authorization,

delegation, empowerment etc. Technically:

The appointment of someone to take over the appointer’s affairs on his/her behalf for the purpose of accomplishment of certain tasks

Wakalah implies a kind of delegation by a person of his business to act on his behalf.

It is lawful if a person appoints another as his representative for selling or buying, letting or 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.

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EVIDENCE

Al-Quran .

The verse indicate the assigning of agents for zakat management (collection and distribution)

Hadith: Reported by Urwah R.A that the prophet S.A.W gave him 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 presented 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 and 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)

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Reported by Sulayman bin Yasar that: The prophet S.A.W sent Abu Rafi’ and a man of the Ansar to accept (Qabul)his S.A.W marriage to Maimunah binti al–Harith on his S.A.W behalf while he was in Madinah before he had left for Hajj (representative in Marriage)

Ijma’: 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 and handling all his/her needs, matters and daily affairs on their own without having to resort for the help of other 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.

EVIDENCE

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1. Wakil The authorized agent, representative, proxy,

trustee

2. Muwakkil. Authorizer, mandatory, client, principal

3. Muwakkal Bih Things or subject matter that is being entrusted

for, or the business deals involved

4. Sighah Ijab (Offer) Qabul (Acceptance)

PILLARS OF AL-WAKALAH

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FLOWS OF AL-WAKALAH

Muwakkil.(Authorizer,

mandatory, client, principal)

Wakil

(authorized agent, representative, proxy)

Muwakkal Bih(Things or

subject matter)

Ijab (Offer)

Qabul (Acceptance)

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1. Wakalah Mutlaqah Unlimited Agency/ Unrestricted Wakalah

A Wakalah contract that is not restricted to any conditions except for those that are permitted in Islam

Not confined to certain circumstances or time limit.

2. Wakalah Muqayyadah

Limited Agency/ Restricted Wakalah

A Wakalah contract that is restricted or confined with certain conditions that are legitimized by Islam

Bounded by special circumstances or time limit

TYPES OF AL-WAKALAH

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Conditions related to contracting parties The agent must be someone that is capable of

performing the responsibility and fulfill the minimum requirement (being 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 from the contract

Except if the responsibility of the agent towards the other 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 physical appearance, vice versa.

It is legal to entrust certain business dealings to an agent even if the authorizer is capable of performing the same deal himself.

The Wakalah contract ends with the accomplishment of the entrusted tasks or mission

CONDITIONS OF AL-WAKALAH

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Conditions related to the object of agency contract The subject matter or business dealings must be clearly

specified in the contract by the authorizer. The object of an agency contract should be eligible for

legal authorization. It is not permissible to conduct Wakalah for 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 animals for sacrifice (Qurban), distribution of Zakat, and fasting of Kafarah (on behalf of the dead)

The entrusted agent will not be held responsible for any damage or disruption of the business deal except for cases of 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 ).

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In the contemporary application, wakalah contract is widely used in structuring various Islamic banking, capital market and takaful fee-based products.

Application of wakalah contract includes: Wakalah bi al-istismar (agency for investment) Sukuk Letter of Credit (LC)

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