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Working Partner’s Share In Loss On Investment
In case there is loss on investment, is it permissible to make the working partner liable to bear a percentage of that loss?
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 be required to bear any negative consequences. If the Mudarabah contract stipulates that the working partner will be financially responsible for loss, such a condition will be void, though the Mudarabah contract itself will remain valid.

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