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Different Profit Ratios For Different Partners In Mudarabah
It is permissible to agree different ratios of pro...
 
Profit Shares Preset As Percentage Figure
Profit shares must be known as a percentage, not as an absol...
 
Mudarabah: Investment Financing
A Mudarabah agreement creates a partnership business whereby an investing partner (rab al maal) brings capital and a working partner (mudarib) brings time and effort to share in profits according to a percentage agreed upon beforehand. The investor has no direct involvement with the management of the business after the investment is made, though there are restricted Mudarabahs that specify the kind of venture intended, and unrestricted Mudarabahs that leave all discretionary powers in the hands of the worker to invest capital in the most pro...
 
The Dos And Don'ts Of Profit And Loss Distribution
It is central to the validity of the Mudarabah that distributions be measured as a percentage of profit and loss, not as a fixed amount, percentage of total capital, total revenue or some other absolute amount. For wholly-owned Mudarabahs, profits and losses are netted against one another, whereas for different businesses, as differentiable by the fact that they hold separate Mudarabah agreements, profits and losses are treated separately for separate businesses. At any point during the agreement's tenure, either the i...
 
Liability For Losses In Mudarabah
The investor bears all losses barring negligence, in ...
 
Project Evaluation Charges Prior To Contract
It is permissible for the bank to charge a fee for evaluation of the project, ...
 
Profit Distribution In Long-Term Mudarabah Contracts
It is permissible, with mutual agreement among investors, to periodically distr...
 
Termination Of Mudarabah And Disposal Of Assets
In the case described above, the Mudarabah operation has ceased to exist and all assets belonging to the Mudarabah operation are now in the custody of the investor. It is permissible for the investor to dispose of the assets in any manner he...
 
Working Partner's Share In Loss On Investment
The working partner may not be held financially responsible for any loss on investment unless it can be proved that he acted with negligence or incompetence. This is because the working partner has not invested any capital and will not ...
 
Loss, Damage, Or Theft Before Capital Distribution
The partnership is cancelled...
 
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