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WAKALAH - Coggle Diagram
WAKALAH
LEGALITY OF WAKALAH
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The principal should know the agent, either by name or his physical appearance. Likewise, the agent should identify his principal either by name/ characteristics.
The rights and responsibilities of the transaction entered into by the agent shall lie with the agent such as taking possession and delivery of the purchased asset.
The agent as trustee shall not be liable in the event of loss or damage of the asset except if such loss or damage is caused by his misconduct, negligence or breach of specified terms.
If the agent is given a remuneration for the provided service, the Shariah rulings of the Ijarah shall apply.
Although a person's direct performance of an action is legally recognized, it is valid for him to authorize another person to perform it by proxy and to depend upon another party to do it for him.
TYPES OF WAKALAH
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PAYMENT TO THE AGENT
The principal can either pay his agent or not. The permissibility of paid agency is attributed to the fact that the agency is the performance of useful work for which the agent has the right to ask for remuneration.
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DEFINITION
This is a contract whereby a person (principal) asks another party to act on his behalf (as his agent) for a specific task)