Wadiah

Wadiah literally means a trust for safekeeping. Different schools of thought have provided various technical definitions of wadiah. The Hanafi and Maliki schools defined wadiah as property given to another party for safekeeping. The Shafi school defined it as property that is turned over to another party for safekeeping on the owner’s behalf, but they focused further definition on the nature of the property, allowing wadiah whether the property is recognized by the Shariah or not, as long as it can be used and is a person’s exclusive right; for example, a useful impure substance. The Hanbalis defined wadiah as property given to a person for safekeeping without any consideration. For further details see: ISRA Research Paper No: 35/2012


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