CANADIAN SOCIAL SCIENCE Vol. 6, No. 1, 2010, pp. 80-89 ISSN: 1712-8056 www.cscanada.net 80 Mechanism of Al-Wa’Ad (Promise): Teory and Application in Islamic Banking in Malaysia MECANISME D'AL-WA'AD (PROMESSE): THÉORIE ET APPLICATION DANS LES BANQUES ISLAMIQUES EN MALAISIE Nor Adila bt. Mohd Noor 1 Mohd Ashraf b. Aripin 2 Abstract: Contract according to Syariah Law can be defined as being “an expression of the matching between a positive proposal made by one of the contractors and the acceptance of the other contractor in a way which has an impact on the subject of the contract” 3 . There are standard requirements provides by the law in order to constitute a valid binding contract namely offer, acceptance, consideration, and intention to create legal relation. This requirement is more or less the same with the Islamic ‘aqad’ however it comes together with the package the prohibition of any element of uncertainty, interest, etc to make sure it complies with the syariah standard. Most of the conventional contract has ignored few aspects of the Islamic contract such as non-spot in the exchange of ribawi item, unjustified increase of premium, and conditional aqad which are totally prohibited. Therefore Islamic Banking in Malaysia has put strong effort to curb these problems and provides a way out by introducing many syariah compliance products and concepts and one of them is al- wa’ad which is the main concern on this article. As a result, by doing this research, it can help people to discover how far the concept of al-wa’ad had been applied in Islamic Banking in Malaysia by comparing its application among few banks including Islamic Bank as well as conventional banks with Islamic Banking window. Key words: Al-Wa’ad (promise); Islamic Banking; Teory and application; Islamic transaction 1 Centre For Islamic Thought and Understanding (CITU). Universiti Teknologi MARA, Dungun Campus, 23000 Dungun, Terengganu. H/P: 0199369796. Email: norad852@tganu.uitm.edu.my. 2 SK. Tepus, 23200 Bukit Besi, Dungun, Terengganu. H/P: 0199399796. Email: hash_99@yahoo.com. 3 Prof Dr Ala’ Eddin Kharofa, Transaction in Islamic Law, 1997, A. S. Nordeen, Kuala Lumpur. * Received 19 Jannuary 2010; accepted 18 February, 2010