A unilateral promise or undertaking which is associated with a financial transaction. ‘Ahd is a promise from one party (promisor) to the other (promisee), which is intended to induce a desired action by the latter. The promisee is not bound to act or do anything in return for that promise, as he has given no promise from his side. The promisor’s act is considered as an acceptance of and a consideration for the promise. However, sometimes ‘ahd also covers a bilateral undertaking or obligation.

In general, ‘ahd refers to a pledge or injunction, command, etc. In Quran, it is used, in some contexts, to imply Allah’s covenant with the human beings and His commands. It is associated with the religious engagement into which the believers have taken upon themselves, and also with political agreements and undertakings of believers and infidels (whether unbelievers or followers of other faiths)  towards the Prophet and amongst each other.