Profits not stipulated in a Mudhaarabah partnership
Question
What is the ruling if the profit sharing percentages are not stipulated in a Mudhaarbah partnership between the partners?
Answer
If the Mudhaarabah partnership becomes corrupt as the investor (Rabb-ul-Maal) and investment agent (Mudhaarib) didn’t stipulate and fix the percentages on which the profits will be shared between them, then the investment agent (Mudhaarib) will receive Ujrat-e-Mithl for his work. Ujrat-e-Mithl refers to a salary that employees carrying out a similar type of work (in the same field) will receive in lieu of their services.
References (Arabic / Urdu sources)
References:- Hidaayah Pg.258 Vol.3; Badaa’i –us-Sanaa’i Pg.108 Vol.6
- Answered by
- Mufti Mohammed Desai
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