An Arabic term synonymous with the word “contract” in its many cognates in modern law, i.e., a contractual relationship between two or more people (natural and/or legal) to some underlying effect. Literally, it is derived from verb “to tie” or “to coagulate” (in Arabic). However, it carries a deeper meaning than an ordinary contractual relationship because it involves, in addition to the intention to establish a legal relation, the general requirements of offer, acceptance and consideration. Under shari’a contract law, a contract doesn’t necessarily require the agreement of all the parties concerned, because, on some occasions, ‘aqd may involve a unilateral action that is binding and effective even without the consent of the other parties. For example, a gift contract is valid though it may initiate unilaterally, and it doesn’t require the acceptance of the other parties.

An ‘aqd or contract under shari’a covers all types of obligations in all walks of life: commercial obligations, religious obligations, political obligations, etc. This fact is explicitly expressed in the following Quranic verses: “O you who have believed, fulfill [all] contracts” (verse 5:1), and “fulfill the covenant of Allah when you have taken it, and break not your oaths after you have confirmed them” (verse 16:91). Most shari’a scholars define an ‘aqd in its generality as “offer and acceptance”, in spite of the discrepancies among different schools of thought (mazhahib) over its elements (arkan) and essentials.

‘Uqud (plural of ‘aqd) are mainly classified, from a shari’a perspective, as ‘uqud mua’wadhah (commutative contracts) and uqud tabarru’ (noncommutative contracts).