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Mudarabah: Permissibility For Working Partners To Act On Behalf Of One Another
If working partners provide a service, they may act on behalf of one another as agreed upon (e.g. buying, selling, managing, etc.) and no partner...
 
The Extent Of Working Partner’s Authority In Mudarabah
It is impermissible for working partners to act on behalf of the Mudarabah or to use, buy or sell the property of the Mudarabah without the...
 
Multiple Working Partners In Mudarabah Contract
It is permissible for the working partner in a Mudarabah contract to appoint another working partner with the approval of the investors. However,...
 
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...
 
Zakat On Mudarabah
It is permissible for the working partner to deduct zakat from Mudarabah operations from the investors’ accounts, provided that he has been...
 
Appointment Of Agent By Working partner
It is permissible for the working partner to appoint an agent for investing the money collected.
 
Alteration Of Mudarabah Contract
It is permissible to alter the Mudarabah contract if all the parties agree to the change. The alteration may pertain to profit percentages or any...
 
Fixing Different Profit Margins For Different Business Areas
Before finalizing an agreement in a restricted Mudarabah, the investor may stipulate that some areas of the business earn the worker higher profit...
 
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...
 
A Mudarib Is Entitled Only To Profit, Not Salary
There is no salary for the worker in a Mudarabah; he takes only that share of the profits to which he is entitled.
 


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