In the context of Islamic financial mua’amalat, an aqd lazim (عقد لازم) refers to a valid and effective contract (aqd) that is also binding on both parties to the contract. In other words, none of the parties has the unilateral right to revoke the contract without the consent of the other party unless the contract has an embedded optional condition (khiyar al-shart).
Examples of uqud lazimah (pl. of aqd lazim) include hawalah (assignment), ijarah (lease), iqalah (rescission), ba’i (sale), maqassah (set-off), etc.
