Welcome ToOur

Presentation

Title of the Presentation

MUDARABA

Group Members:

Name: ID:

Lia Borsha Gomes……….... 2671……….

Tamrin Tamanna Helen……2689……….

Shamima Akter Shemu……2699……….

Presentation Outline

Serial No Particulars1. 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

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

Sahib-al-maal Mudarib

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

Oversee the Mudarib’s activities and

Work with Mudarib, if the Mudarib request

Duties and Power of Mudarib1. 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.

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.

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.

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.

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

Q & A Part