Mudarabah

MUDARABAH Glossary: Mudarib : Working Partner (brings effort) Ras-ul-Maal : Investment Rab-ul-Maal : Investor (brings peachy) Wakeel : Agent Ameen : legal guardian Kafeel : Guarantor Definition: This is a kind of partnership where hotshot partner gives money to another(prenominal) for investing in a mercenary enterprise. The investment comes from the graduation partner who is called Rab-ul-Maal while the management and fit is an exclusive certificate of indebtedness of the other, who is called Mudarib and the profits generated are share in a predetermine ratio. Types of Mudarabah There are 2 types of Mudarabah namely: 1. Al Mudarabah Al Muqayyadah: Rab-ul-Maal may specify a position business organization or a particular hind end for the mudarib, in which case he shall invest the money in that particular business or place. This is called Al Mudarabah Al Muqayyadah (restricted Mudarabah). 2. Al Mudarabah Al Mutlaqah: and if Rab-ul-maal gives integral freedom to Mudarib to undertake whatever business he deems fit, this is called Al Mudarabah Al Mutlaqah (unrestricted Mudarabah). However Mudarib foundationnot, without the consent of Rab-ul-Maal, convey money to anyone. Mudarib is true to do anything, which is normally done in the course of business.

However if they want to have an extraordinary work, which is beyond the normal fashion of the traders, he cannot do so without announce permission from Rab-ul-Maal. He is also not authorized to: a) entertain another Mudarib or a partner b) mix his induce investment in that particular Modarabah without the consent of! Rab-ul Maal. Conditions of Offer & credence are applicable to both. A Rab-ul-Maal can contract Mudarabah with more(prenominal) than one person through a single transaction. It pith that he can cater his money to A and B both so that each one of them can act for him as Mudarib and the capital of the Mudarabah shall be utilized by both of them jointly, and the share of the Mudarib. release between Musharakah and...If you want to bump a full essay, outrank it on our website: OrderCustomPaper.com

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