#Qudoori

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Detailed Notes on Mukhtasar Al-Qudoori: Mudarabah (Silent Partnership) 1. Basic Definitions and Key Terms Mudarabah: A silent partnership where one party provides capital (Rabbul Maal) and another party (Mudarib) manages the business. Profits are shared according to a pre-agreed ratio. Rabbul Maal: The investor or owner of the capital. Mudarib: The entrepreneur or manager who invests the capital and runs the business. Ribh: Profit made from the business. Nasib: Share in the profit or business. 2. Key Scenarios in Mudarabah Scenario 1: Purchase of a Slave Who Becomes Free If the Mudarib purchases a slave who is related to him (for example, his father or brother), and the business has made a profit, then: He cannot purchase the slave with the business funds because the slave would become free. If he still purchases the slave, the Mudarib must compensate the value of the slave from his own funds (compensation is called Dhaman). Example: If a slave costs 1500 and the profit is 500, the Mudarib must pay the full 1500 from his personal funds. Scenario 2: Purchase Without Profit If there is no profit (i.e., only the initial capital remains), the Mudarib can purchase the slave but must ensure that the slave’s value does not exceed the remaining capital. If the value of the slave exceeds the available capital, the slave must work to pay off the remaining debt. Example: If the capital is 1000 and the slave is worth 1500, the Mudarib’s share in the slave goes free, but the remaining value (500) must be paid by the slave through labor (Istis’aa). 3. Distribution of Profits in Mudarabah Scenario 1: No Permission to Invest Through Another If the Rabbul Maal (investor) does not give permission to the Mudarib to invest through another entrepreneur, and the Mudarib does it anyway, the Mudarib does not owe any compensation until profit is made. Once profit is made, the Mudarib is responsible for compensating the Rabbul Maal. Example: If the Mudarib hands over 1000 to another manager without permission and the second manager makes a profit on the fourth day, only then will the Mudarib be liable for compensation if there is any loss. Scenario 2: Permission to Invest Through Another If the Rabbul Maal gives permission to the Mudarib to invest through another entrepreneur (Mudarib 2), the profits are shared based on agreed terms. Example: The Rabbul Maal agrees to half of the profits, and the Mudarib 2 agrees to one-third of the remaining profits. If the business makes 2500, the profits are distributed as follows: The Rabbul Maal gets half of the 1500 profit, i.e., 750. The Mudarib 2 gets one-third of 1500, i.e., 500. The remaining 250 goes to the first Mudarib. 4. Compensation and Liability in Mudarabah The Mudarib becomes liable for losses only once profit is realized. The liability to compensate only occurs if profit has been made, not before. In cases where a slave is purchased and freed, the Mudarib must ensure that the value of the slave is compensated from the capital or profits, depending on the situation. 5. Profit Distribution with Multiple Mudaribs When there are multiple Mudaribs, the distribution of profits is based on the agreed-upon terms. Example: If the Rabbul Maal demands half the profits and allows the Mudarib to hand over one-third of the profits to another Mudarib, the profits are split accordingly. Each party receives their agreed share, and any remaining portion goes to the Mudarib. 6. Calculation Example Business capital: 1000 Profit made: 1500 Total wealth: 2500 Profit distribution if the Rabbul Maal gets half and the second Mudarib gets one-third of the profits: Rabbul Maal: Half of 1500 = 750 Mudarib 2: One-third of 1500 = 500 Mudarib 1: Remaining = 250 7. Important Principles in Mudarabah Profit Sharing: Profits are shared according to pre-agreed terms. Losses are borne by the Rabbul Maal, unless negligence or violation of the contract occurs. No Liability for Unpermitted Investments: The Mudarib is not liable for losses unless profit is made, especially if there was no permission to invest through another party. Slaves and Mudarabah: If a slave is purchased, the Mudarib must ensure that the slave’s value does not exceed the capital or profits. If it does, the freed slave must work to pay off the remaining debt.

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