Deposit Account and Wadi Ah

Topics: Deposit account, Hadith, Sura Pages: 2 (575 words) Published: May 3, 2013
Al-Wadiah comes from the word of Al-Wad’. Al-Wadiah literally means “to leave, quit or abandon” and technically means representation in keeping possession or respectable private goods in a specific way. Besides that, any belonging left by the owner or his representatives with somebody to take care of them. Al-Wadiah is the commission given by the depositor to the depositary for holding his property in safe custody al-amanah and done on the basis of charity. In the Quran, there is an evidence about Al-Wadiah in Surah An-nisa verse 58 (4:58)

And in Surah Al-Baqarah verse 283 (2.283)

Other than Surah in the Quran, there are also evidence from hadith : “Discharge the trust to the person who entrust it to you, and do not betray the one who betrays you” (Sunan Abu Dawud)
The scholars from every single era of the Islamic eras also had come to a consensus (Ijma’) on the permissibility of the Wadi’ah contract since it is desired by the people in general to the extent that it is actually an essential and vital contract for the society.

There is 4 pillar of Al-Wadiah:
1. Al-Muwaddi’ : Depositor, Owner of the property
2. Al-Wadi’ : Depositee, Custodian of the property
3. Al-Wadi’ah : Property for safe keeping
4. Sighah : Offer(ijab) and Acceptance(Qabul)
* Al-muwaddi’ is the depositor or the owner of the property * Al-wadi’ is the depositee or the custodian of the property * Other parties must be person of sound mind and eligible to do a contract (ahliyaah al ada’a) * Both parties must be eligible to be a wakil (agent) and trustee * Al-wadi’ must ensure his capability to safe-keep the deposit

* It must be valuable from shariah view point, must be owner and deliverable * It must be a form of property that can be possessed physically

There is 2 types of Wadi’ah :
1. Wadi’ah Yadd al-Amanah : Safe custody based on trust...
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