Glossary
Amanah
Trust: holding something for someone else, so you are only liable if you were careless or dishonest.
أمانةamānah
Amanah describes a trust relationship where the holder is not a guarantor: if the property is damaged without his negligence or misconduct, he does not have to make it good. It is the opposite of a guarantee and it is why AAOIFI treats certain combinations as incompatible. AAOIFI Shariah Standard No. 5 clause 2/3 applies it to leases: the lessee holds the leased asset on a trust basis, so the lessor may not demand a guarantee against damage except for misconduct, negligence or breach.
Related terms
WadiahSafekeeping: leaving money or goods with someone to look after for you.WakalahAgency: appointing someone to act on your behalf, and paying them for it if you agree to.KafalahA guarantee: one person promising to cover another person's debt if they do not pay.MudarabahA partnership where one side puts up the money and the other does the work, and they share the profit.
Sources
- AAOIFI Shariah Standard No. (5) clause 2/3