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 wadi’ah is drived from the verb “wada”a”.

Keep lodge,store,entrust,leaves or deposit.

Something placed under somebody who is not

owner to keep.

Wadi’ah is a safe keeping of deposit.

Wadi’ah itself is divided into two..its named

Wadi’ah Yad Al Amanah and Wadi’ah Yad Al

Dhamanah

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1. Al – Muwaddi’Depositor, Owner of the property

2. Al – Wadi’Depositee, Custodian of the property

3. Al-Wadiah Property for safe keeping

4. SighahOffer (Ijab)Acceptance (Qabul)

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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. 

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Conditions for Wadi’ah (Deposited Property)

i. 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  

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Safe custody based on trust (Amanah).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

people’s properties.

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

people’s 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 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.• The custodian must return the deposited property to the owner at any time upon the request of depositor.

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Bank

APPLICATION OF WADIAH YAD AL-DHAMANAH

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 ISLAMIC

Loan contract CONTRACT Wadiah (safe-keeping) contract

Lender – Borrower RELATIONSHIP

Depositor – Depositee

Deposits are paid interest

INCOME Deposits are not entitled to any 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

Deposits are liability products of a bank

PRODUCTS Deposits are either a trust or guarantee products of a bank

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