تصفح برقم المجلد > Group 1 > Volume 14: Transactions 2 > Chapter on partnership > Mudarabah partnership

The fourth question of Fatwa no. 19912
Q 4: Do both parties bear the profit and loss in Mudarabah (a speculative partnership, giving an amount of money to trade with in return for a share in the profit), or is it only the party who trades with the other’s money who bears the loss on their own?
A: Any loss in Mudarabah is on the capital; the trading party does not bear any of it if they do not commit transgression or negligence, because the loss is a decrease in the capital, which is the property of its owner. It is, therefore, only the owner who bears the loss, but they both share in any growth on the capital or profit, according to the agreement that they made, provided that it is a publicly known amount of the profit, such as one-half, one-third, or other. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

The Permanent Committee for Scholarly Research and Ifta'

Member Member Deputy Chairman Chairman
Bakr ibn `Abdullah Abu Zayd Salih ibn Fawzan Al-Fawzan `Abdul-`Aziz ibn `Abdullah Al Al-Shaykh `Abdul-`Aziz ibn `Abdullah ibn Baz



  Back     Next