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Partners' Individual Liability For Musharakah Transactions

Is it permissible to hold a partner in a Musharakah personally liable for a transaction entered into on that partner's recommendation or judgment in case the Musharakah suffers a loss due because of the transaction?

In such a case, it will be determined whether the partner exercised due care and diligence. If the partner made a gross error in judgment or did not take due precautions, he will be held responsible.

If the partner omitted consultation with an expert for a transaction that is ordinarily referred to experts, the partner will be held liable.

If however, the shortcoming in the transaction was undetectable, or if the transaction was prudent at the time it was entered into, the partner may not be held liable and the Musharakah will bear the loss.

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