Post on 05-Apr-2018
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NAME MATRIC NO
1. NUR FAHEZZA BT MUSA 2010108559
2. NORFAJRINA BT ISMAIL 2010521411
3. SITI NORHASIMA BT MOHD YUSOF 2010126529
4. NURUL AIN BT MOHD ANUAR 2010730561
5. NURUL HANISS BT MANAB 2010127963
Prepared by:
Prepared for: Miss Mardziyana bt Maalom
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DEFINITION
TYPES OF MUDARABAH
LEGITIMACY OF A MUDARABAH
PILLARS & CONDITIONS OF MUDARABAH
DIFFERENCE BETWEEN MUDARABAH & MUSYARAKAHCONTRACT
TERMINATION OF A MUDARABAH CONTRACT
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Literally : derived from the phrase al-darb fi al-ard which meansto make a journey
Technically : is a kind of partnership where one partner givesmoney to another for investing in a commercialenterprise
The profit will be shared between them at a mutually ratio
If loss, it will be borne by the Rabbul-Mal (capital provider) and theMudarib will lose his efforts
This is a kind of partnership where one partner gives money toanother for investing in a commercial enterprise
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... And others who travel in the land seeking ofthe bounty of Allah
(73:20)
there is no blame on you in seeking bountyfrom your lord
(2:198)
but when the prayer is ended, they disperseabroad in the land and seek Allahs grace
(62:10)
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The Narration of Ibnu Abbas
Ibnu Abbas r.a. reported that:
When our leaderAbbas Ibn Abd al-Mutallib gives hisproperty to someone for Mudarabah, he stipulatedconditions for his partner not to bring the capital throughout thesea; and not to bring with him the capitalcrossing a valley; and not to buy livestock with the capital;and if his partner violates the conditions,he should guarantee the loss occurred. These conditions
have been brought to the attention of Prophet Muhammad(SAW) and he approved them. (Mujam Al-Awsat; Al-Tabrani)
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The Narration of Suhayb
Suhayb r.a. reported that the ProphetMuhammad (SAW) said:
Three matters that have the blessing (of
Allah): A deferredsale,Muqaradah (Mudarabah), mixingthe wheat with barley for domestic useand not for sale. (Sunan Ibn Majah).
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The Tacit Approval of the Prophet
Muhammad (SAW)
Mudarabah venture has being practisedbefore the Prophets (SAW) first
revelation and he did not raise or showany objections against the practice. Thisis considered a tacit approval by the
Prophet Muhammad (SAW).
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The Muslim jurists have reached Ijma amongthem upon conducting Ijtihad on thepermissibility of theMudarabah contract.
It has also been established that the companions of the Prophet Muhammad(SAW) such as Umar, Uthman, Ali, Abdullah Ibn Masud, Abdullah Ibn Umar, Ubaydullah Ibn Umar
and A`ishah have placed the property oforphans under theMudarabah contract with no objections fromother companions .
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PILLARS OFMUDARABAH
SUBJECTMATTER
CONTRACTINGPARTIESCONTRACT
(SIGHAH)
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CONDITIONS OFMUDARABAH
RELATED TO THECONTRACTING
PARTIES
RELATED TOSUBJECTMATTERS
RELATED TOSIGHAH
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Generally, the condition related to the
sighah of mudarabah is similar to those of
other contracts which constitute offer and
acceptance.
Offer is done by uttering the terms of
Mudarabah, Muqaradah or any terms tothat effect.
1. CONDITIONS RELATED TO SIGHAH
(IJAB & QABUL)
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Offer and acceptance can be doneverbally, in writing or through any means
of communication that is acceptable byboth contracting parties.
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Both Mudarib and Rabbul Mal must bequalified persons under the law.
(e.g: sound mind)
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a) Mudarabah capital
Shall be in the form of cash money.
Immovable or movable properties cannot serve
as the capital of mudarabah due to the fact thatthere is gharar(uncertainty).
Lead to a dispute (al-niza) between contractingparties.
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Ibn Abi Layla and Al-AwzaI are of the
opposite opinion. (the capital need not bein terms of cash money only);
i. The capital must be present during theconclusion of the contract.
ii. The capital must be determined in terms of
its value and be delivered to the mudarib.
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b) Mudarabah profit
i. The distribution of profit must be on the
basis of an agreed percentage of the profitand not on the basis of a lump sum or
percentage of capital.
- Although the ratio of profit must be fixed
upfront, it can always be changed orstructured on different tiers with mutual
consent of both mudarib and rabbul mal.
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ii. AAOIFI states in its Shariah Standard No. 13,Clause 8/2 - The mudarib cannot claim any
periodical salary or a fee or remuneration for thework done by him.
- It is permissible for the two parties to construct a
separate agreement independent of themudarabah contract, assigning one party toperform, for a fee, a business activity that is not bycustom part of the mudarabah operations.
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c) Labour of the contract
- The mudarabah contract can be divided,
from the work of the mudarib perspective,
into 2 categories:
Al-Mudarabah Al-Mutlaqah
Al- Mudarabah Al-Muqayyadah
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Al-MudarabahAl-Mutlaqah
The capital providerpermits the mudarib to
administer a mudarabahfund without restrictions.
The mudarib has a widerange of trade or business
freedom.
The Shafiiyyah & theHanabilah are the opinionthat the mudarib can onlyenter into this kind of act
with permission of therabbul mal.
Al- MudarabahAl-Muqayyadah
The capital providerrestricts the action of the
mudarib.
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Mudarib Rabbul mal
MudarabahCompany
Profit / LossFinancial loss is borne
byrabbul mal. Themudarib lost his effort
Distributed according to
agreed PSR
Profit
LOSS
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Mudarabah Musharakah
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Mudarabah Musharakah
Investment is the sole responsibilityof rabbul-mal (capital provider)
The investment comes from all thepartners
The rabbul-mal has no right toparticipate in the managementwhich is carried out bythe mudarib only
All the partners can participate inthe management of the businessand can work for it
The loss is suffered by the rabbul-mal only, because the mudaribdoes not invest anything
All the partners share the loss tothe extent of the ratio of theirinvestment
The liability of rabbul-mal islimited to his investment, unless hehas permitted the mudarib toincur debts on his behalf
The liability of the partnersin musharakah is normallyunlimited
All the goods purchased by themudarib are solely owned bythe rabbul-maal, andthe mudarib can earn his share in
the profit only in case he sells thegoods profitably
The partners mix up their capitalin a joint pool, all the assets of themusharakah become jointlyowned by all of them according
to the proportion of theirrespective investment
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Givenotice
Set atimelimit
Exhausted/sufferlosses
Death ofmudarib
Insanity
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If all assets of the Mudarabah are in cash format the time of termination, and some profit
has been earned on the principal amount, itshall be distributed between the partiesaccording to the agreed ratio.
If the assets of Mudarabah are not in cashform, they will be sold and liquidated so thatthe actual profit may be determined.
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If there is a profit, it will be distributedbetween Mudarib and Rab-ul-Maal.
If no profit is left, Mudarib will not getanything.
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