3. Group Members:
Name: ID:
Lia Borsha Gomes……….... 2671……….
Tamrin Tamanna Helen……2689……….
Shamima Akter Shemu……2699……….
4. Presentation Outline
Serial No Particulars
1. What is Mudarabah?
2. Role of Sahib-al-maal
3. Duties & Power of Mudarib
4. Violation of Contract
5. Guarantee
6. Mudarabah Expenses
7. Termination of Mudarabah Contract
5. What is Mudarabah?
This is a business contract under which the entrepreneur
obtains finance from a financier on the condition that
he will conduct the business alone without taking any
help from the financier .
And the profit will share as agreed in the contract, loss
will bear by financer only.
Financer is known as Sahib- al- Maal
Entrepreneur is known as Mudarib
7. Role of Sahib al-Maal:
In Mudarabah , Sahib al-Maal Provides the capital and
Mudarib undertakes the management. Therefore, the
Sahib al-Maal should handover the agreed capital to
Mudarib and leave everything to Mudarib with no
interference from his side but he has the authority to
8. Oversee the Mudarib’s activities and
Work with Mudarib, if the Mudarib request
9. Duties and Power of Mudarib
1. Trustee to look after the investment responsively, except
in case of natural calamities.
2. Partner for sharing any profit.
3. Liable to provide for the loss suffered by the Mudaraba
due to his breach of trust.
4. It is not permissible for the Mudarib to make
loan/gift/charitable donation out of the Mudaraba funds.
5. Agent to purchase/sell/do everything for the benefit of the
business.
10. Violation of contract
If the Mudarib violates the terms of the
contract , he is guilty of misconduct and
his status as a holder of the funds on
trust changes into that a guarantor
there for the nature of the possession of
the funds changes from a Mudarabah to
a debt due from the Mudarib.
11. Guarantee
It is not permitted to obtain adequate
security, guarantee and mortgage from the
Mudarib
Or, From any third party on behalf of the
Mudarib except in cases of misconduct,
negligence or breach of contrct on the part of
the Mudarib.
12. Mudarabah Expenses
All expenses which are incidental to
theMudarabad business like wages of
employees/ workers or commission in buying
/ selling etc, have to paid by the Mudaraba
Murarib expenses like meals ,clothing,
conveyance and medical are not borne by
Mudarabah.
13. Termination of Mudarabah Contract
With mutual consent of both the parties.
On the date of maturity , if the two
parties had earlier agreed to set a time of
limit for it.
When the funds of Mudarabah contract
have suffered losses.
The death of Mudarib of the institution
that acts as Mudarib