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Immediate Cancellation Of Invalid Mudarabah
If a Mudarabah is found to be invalid, it is cancelled immediately; the partners are then entitled to enter into a new agreement that is valid.
 
Loss, Damage, Or Theft Before Capital Distribution
The partnership is cancelled and, if so agreed, renewed.
 
The Form Of Capital Investment
Capital investment may be contributed in cash or in kind.
 
Deduction Of Salary Expense From Mudarabah In Two Stages
It is permissible in the Shariah to deduct salaries from the Mudarabah in the mode described. The second deduction represents nothing more than the...
 
Guarantee From Working Partner
It is permissible for the investor to demand a guarantee from the working partner against his investment.
 
Expanding Mudarabah Investment Portfolio
It is not permissible for the working partner (the bank, in this case) to expand its investment portfolio without consultation with the investors....
 
Mudarabah Investment In Other Than Cash
The majority of Islamic jurists are in agreement that Mudarabah investments may only be made in cash. Therefore, the investors in a Mudarabah...
 
Investor Acting As Working Partner
It is permissible for the investor in a Mudarabah to assume the role of working partner as well. This is particularly relevant in Mudarabah...
 
Liability For Losses In Mudarabah
The investor bears all losses barring negligence, in which case the negligent party is financially liable.
 
Prohibitiveness Of Spreading Losses By “Distributing” Negligence
It is impermissible to “distribute” negligence by holding all the working partners liable for the mistakes of a few.
 


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