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Islamic Finance




Principal Contract


A contract (aqd) which exists by itself and is not subordinate or auxiliary to another contract (i.e., an accessory contract). Examples of principal contracts include contracts of sale (ba’i/bay’), lease (ijarah), commissioning (ju’alah), etc.

Principal contracts are known in Arabic as al-uqud al-asliyyah (العقود الأصلية).



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