Karma is one of the most important concepts in Buddhism. Karma is an imprint in one's Mind. When one performs a good deed out of good intentions, the good intentions come from the Mind. Having done that good deed, the residues of these intentions stay in one's Mind as "imprints", and that is "good karma". The opposite goes for evil deeds (or what the Buddha would call "unwholesome deeds") done out of greed, hatred etc.
A person's karma affects a person in 2 ways. The first is his disposition. If a person is an angry one, performing many deeds with anger, his mind will be imprinted with experiences and intentions of anger. Because of this imprint, in a similar situation, he would be more likely to feel angry. In a sense, the imprint creates and reinforces a sort of mental habit that causes a person's mind to react in a certain pre-disposed way.
The Natural Law
Karma is action, and Vipaka, fruit or result, is its reaction.
Just as every object is accompanied by a shadow, even so every volitional activity is inevitably accompanied by its due effect. Karma is like potential seed: Vipaka could be likened to the fruit arising from the tree – the effect or result. Anisamsa and Adinaya are the leaves, flowers and so forth that correspond to external differences such as health, sickness and poverty – these are inevitable consequences, which happen at the same time. Strictly speaking, both Karma and Vipaka pertain to the mind.
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