SS 49 – Unilateral and Bilateral Promise

This Standard aims to explain the concepts of unilateral promise/under- taking (promise) and bilateral promise/undertaking (bilateral promise); their various types and the enforceability of each type; the Shari’ah rules that govern them and the most important contemporary applications of each type in the activities of Islamic financial institutions.

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This Standard covers promises (unilateral and bilateral) given by certain parties for the purpose of concluding a contract or effecting a disposal, and explains when such instruments are binding and when they are not, the jurisprudential rules that govern them, and the most important contemporary applications of each type in the activities of Islamic financial institutions. 2. Definitions of Unilateral and Bilateral Promises