Islamic Law of Contract (Aqd)
Contracts form the foundation of transactional relationships.
- Definition: Aqd is the Arabic term used for a contract, literally meaning a knot, tie, or conjunction. It signifies the obligation and agreement of two contracting parties regarding a particular matter.
- Elements: A valid contract strictly requires an offer and acceptance. It is not enforceable under Islamic law without free consent. If consideration is completely absent from the transaction, the contract becomes void.