A contract (aqd) where a party transfers the ownership of an asset to another party, known as the fiduciary (a trustee), who can exercise ownership rights on behalf the true owner and re-transfer the asset to back to that party or to a third party, as defined by the owner, at the end of the contract. Examples include mudarabah contract, agency contract (wakahah), contract of deposit (wadeya’a), etc. In agency contracts, it is not permissible to stipulate that an agent presents a personal guarantee or pledge of security, unless the stipulation is actually meant to protect a respective party (the principal) from misconduct, negligence or breach of contract.

In another context, fiduciary contract may also include a Shari’a-nominated contract (aqd musamma) that is based on trust or honesty and transparency as to the dealing between the two parties. Examples include murabaha sale, where the seller is obliged, under shari’ah, ethically and contractually, to reveal to the potential buyer the real cost of the underlying good/ property.

Fiduciary contracts are also referred to as amanah contracts.