BAHNU A/P V.

P MOHAN-012015030034
SYAFIQAH BINTI BAHAR-012015030340
ANIS AZWANI BT ABDUL AZIZ-012013111561
MOHAMAD KHAIRIE BIN ZAIPORI-012015030167
NORSHAHERA BT MOHD SHARUM-012015030036
NURUL AIN NAJWA BINTI MUHAMAD-012015030389
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 Term wadiah is drived from the verb wadaa.

Keep lodge,store,entrust,leaves or deposit.
Something placed under somebody who is not
owner to keep.

Wadiah is a safe keeping of deposit.

Wadiah itself is divided into two..its named
Wadiah Yad Al Amanah and Wadiah Yad Al
Dhamanah
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1.

2.

3.

4.

Al Muwaddi
Depositor, Owner of the property
Al Wadi
Depositee, Custodian of the property
Al-Wadiah
Property for safe keeping
Sighah
Offer (Ijab)
Acceptance (Qabul)

Conditions for Contracting Parties

i. Al-muwaddi is the depositor or the owner of the
property
ii. Al-wadi is the depositee or the custodian of the
property
iii. Both parties must be person of sound mind and
eligible to do a contract (ahliyaah al ada`a)
iv. Both parties must be eligible to be a wakil (agent)
and trustee
v. Al-wadi must ensure his capability to safe-keep
the deposit.


i.

Conditions for Wadiah (Deposited Property)

It must be valuable from Shariah view point, must
be owned and deliverable

ii.

It must be a form of property that can be

possessed physically

Safe custody based on trust (Amanah).

The trustee will only be responsible for damages to the assets or
property entrusted in case of negligence and the trustee cannot mix
the assets or property with his or other peoples properties.
Features of Wadiah Yadd Al-Amanah:
The trustee should keep the deposits as he is keeping and taking
care his own property.
The trustee is not entitled to any profits gained from the
contract. Any benefits accrued from the deposit belong to the
owner.
The trustee should not take advantage of the deposit.
The trustee should not transfer the deposit in the hands of others
without permission of the depositor.

Features of wadiah yad al-dhamanah

Combination of safekeeping (wadiah) and guarantee (dhaman)
Based on guarantee whereby the custodian guarantees the
refund
of the property kept with him and ensure to refund the item
upon
request.
The custodian is entitled to use the deposited property for
trading
or any purpose.
The custodian has the right to any income derived from the
utilisation of the deposit and responsible for any damages
or loss
The custodian owns the profit and under his discretion to
give some
portion of it as gift (hibah) to the depositors. The gift
cannot be in
the form of pre-agreed agreement.

APPLICATION OF WADIAH YAD AL-DHAMANAH

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2

Bank

1. You place money in a bank and the bank guarantees to return

the money to you.
- You are allowed to withdraw the money anytime.
2. Bank may charge you a fee for looking after your money and
may pay hibah (gift) to you if it deems fit.
- This concept is normally used in deposit-taking activities,
custodial services and safe deposit boxes.

CONVENTIONAL
Loan contract

Lender Borrower

ISLAMIC
CONTRACT

Wadiah (safe-keeping)
contract

RELATIONSHIP

Depositor Depositee

Deposits are paid interest

INCOME

Conventional banks must

give the depositers their
interest payment

OBLIGATION

Islamic banks may give the

depositer a share of the
profits generated at their
discretion

PRODUCTS

Deposits are either a trust

or guarantee products of a
bank

Deposits are liability

products of a bank

Deposits are not entitled

to any income

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