A non-compensatory contract (in Arabic, aqd tabarru) in which a property is donated by one party to another against no consideration (iwadh/ ajr, etc.) as in a unilateral transfer of wealth or resources. The donor transfers ownership of the property to the donee free of charge and free of any commitment or obligation. Among the key noncommutative contracts, in Islamic finance, are:
- Waqf (endowment).
- Kafalah (particularly personal kafalah).
- Qard alhasan (interest-free or riba-free loan).
- Hawalah (assignment of debt).
- Hibah (gift).
