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Islamic Finance


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Aqd Mudhaf


Arabic (عقد مضاف) for a contract (aqd) which comes into effect at a specific date in the future. In this sense, the contract is deferred to the future, i.e., the contractual relationship between the parties to the contract will not come into force now, but rather at the certain date in the future as agreed by the parties. The contract, per se, is concluded at the present but its effects will materialized in the future. For example, a lessor and lessee may agree to enter into a lease contract (aqd al-ijarah) whereby the lessee will have access to the leased property after two months. Therefore, the lessor will have no right to receive rentals (ujrah) now, but will have to wait until the specified future date.

Aqd mudhaf is a concluded contract whose effects are attached to the future.

It is also known al-aqd al-mudhaf ila al mustaqbal.


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