Lesson 14

Question 1

What is mudhaarabah

Answer 1

Mudhaarabah is a form of partnership where one partner provides all the capital and / or merchandise without providing labour and the other partner provides labour but does not contribute any capital or merchandise.

Question 2

What is mudhaarib

Answer 2

Mudhaarib: The partner who provides the labour in the partnership. He does not lay out any capital. wealth

Question 3

What is Rabul mask

Answer 3

Rabbul-Maal: The partner who finances the partnership with his capital or he provides merchandise.

Question 4

Termination of mudharabah

Answer 4

It can be terminated at any time provided that a notice has to be given to the other party

Assets in cash : distributed equally according to agreed ratio amount parties

Assets not in cash: mudarib given opportunity to sell them so that the actual profit can be determined

Hanafi / hanbali: mudharabah is restricted to a specific time after that it will come to an end without notice

Shafi/ maliki: mudharabah cannot be restricted to a particular time