Abstract
Wakālah is an agency contract in which a party mandates another party as his agent to perform a particular task. Wakālah is the need of the society, as majority of the people are so busy in their lives and pre occupation that they don’t have time to settle all the issues related to banks, so they hire the services of an agent, who works on behalf of them. In the current context of Islamic finance, the customer normally appoints the financial institution as his agent to conduct a particular transaction and in return, the financial institution will receive a fee for the service. Wakālah is used in credit card, discounting of bill of exchange, Tawarruq, and Murābaḥa etc. This article is divided in to two sections: the first one; to study Wakālah according to Fiq’hī rules, i.e. its definition, conditions, its qualities and its specifications. And in the other part Wakālah is discussed according to application of the Bank. At the end of discussion conclusion and some suggestions are given.
Keyword(s)
Wakāla, Creditcard, Tawarruq, Murābaḥa, Discounting of Bill of Exchange, etc