تلخیص
Hazrat Muhammad (PBUH) was not merely a prophet of his time; he established an Islamic state at Madinah. He gave constitution called میثاق مدینہ to this nation. He gave some norms and guided principles to run the government and state. After establishing real state, he made some treatises with the external tribes/ countries. Among these principles some were: co-existence, justice, generosity, human rights, responsibility, and sincerity. On the basis of these principles he made treatises with different tribes and nations. This legacy remained intact within the period of caliphate. By this he strengthened his defense system and saved the lives of his people. Whether these principles will be useful to follow in our modern age contracts or otherwise. This paper will focus on this issue and see effectiveness of these principles.