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Islamic Finance

  Islamic Finance   |   Terms
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  • January 4, 2022
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Muqtadha al-Aqd

Arabic (مقتضى العقد) for objective or purpose of the contract (aqd). It reflects the combination of form (awsaf al-aqd) and substance of the contract, including explicit and implicit intentions of the parties to the contract. Also, muqtadha al-aqd represents the nature and implications of the contract. For example, a contract of sale (ba’i/ bay’) involves transfer of the object of sale to the buyer in return for payment of the price (thaman). Therefore, the seller is committed to deliver the object of sale to the buyer, while the buyer is committed to pay the price.


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