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WAKALAH - Coggle Diagram
WAKALAH
:star:DEFINITION
Technical
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refers to a contract in which a muwakkil (principal) authorises a party as his wakil (agent) to perform tasks on his behalf.
AAOIFI Shari'ah
the act of one party delegating the other to act on its behalf in what can be a subject matter of delegation
non-binding contract whereby the principal or the agent can withdraw anytime by a mutual agreement, unilateral termination, discharging the obligation, destruction of the subject matter and the death/loss of legal capacity of the contracting the parties.
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:star:CONDITIONS
The principal should commission the agency based on his free will without any pressure from other person. The agent should not be forced in conducting the tasks.
The principal should know the agent either by name or physical appearance. At the same time, the agent also should identify his principal either by name or physical appearance.
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. But, if the agent attributes the transaction to the principal, the rights and responsibilities of the transaction shall lie with principal.
The agent as trustee shall not be liable in the event of damage or loss of the asset except it is misconduct or negligence.
a person's direct performance of an action is legally recognised, it is valid for him to authorise another person to perform it by proxy and depend upon another party to do it for him but there are EXCEPTIONS:
object of an agency contract should belong to the principal so, he should have right of disposal.
the object of an agency contract should be eligible for legal authorisation such as in cases of financial matters
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the object of an agency contract must be known to avoid uncertainty (gharar) however, minor uncertainty (gharar yasir) is allowed
the object of an agency contract cannot be the utilization of public properties such as the collection of wood from public lands
:star:TYPES OF WAKALAH
Scope of the agency
General/Comprehensive. Example; principal says to the agent "buy me a house" without specify the condition
Specific/Restricted. Example; principal identifies certain requirements such as price, mode of payment and others
Payment to the agent
principal can 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 agent has right to ask for remuneration. If the agency is paid, it is under Ijarah
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