The Rules of Wakala Contract (agency) in Sharia law and its application in Islamic Finance A comparative study

Abstract

: This study focus on the origination of Wakala contract in Islamic sharia beside to explain the important of this contract in the field of Islamic finance. The significance of studying this topic steams from the effective role that the wakala transaction played in the field of Islamic financial as modern alternative instruments to avoid the traditional instruments. This study adapted the analytical approach through exposing the different views of four Islamic jurisprudential school and then compare it with the Sudanese Civil Transaction Act 1984 and other related enactments. The study conclude with the numerus outcomes which is there’s shortcoming Sudanese Civil Transaction Act 1984 in the definition of wakala is not comprehensive as we explained in the Islamic jurisprudence namely the Hanbali school definition, also This Act lack to provide for the pillars of wakala, Moreover this Act didn’t provided for the investment wakala Wakala Bi Al-Istithmar as one of the wakala types according to its important in the field of Islamic finance. Moreover the study recommended the necessity to amend section (416) of the Sudanese Civil Transaction Act 1984 to adapted the definition of wakala in according to the Hanbali School because is