The Concept of Law of Gift Inter Vivos Under Islamic Law and the Contracts Act, 1950

Hibah or gift inter vivos is a way of distribution of the estates of a Muslim during his lifetime and have been implemented since, the existence of Islam. Notwithstanding its popularity, this long established instrument which is practised in Malaysia will not be able to provide a satisfactory and viable alternative to overcome problems if it receives a double standard treatment as compared to the civil system. The significant difference between the two is that Islamic law of hibah is a unique contract but is obviously denied the status of a contract under the civil law, particularly the Malaysian law of contracts. Following the above facts, the study seeks to compare the differences between the two concepts of gift, one which is under the Malaysian Contracts Act, 1950 and the other is hibah under Islamic law. In addition, this study will also seek to examine the problems that could arise if hibah is not recognized as a valid contract under the law of contracts.