Common Contracts
1 similar Mudharabah contracts
MUDHARABAHMudharabah • June 10th, 2009
Mudharabah is a contract between a capital provider (sahibul mal) and an entrepreneur (mudharib) in which the former contributes the capital and the latter contributes his effort in managing the business. The parties will share the business profit according to an agreed ratio. However, if the business incurs loss, it shall be borne by the capital provider alone while the entrepreneur would have just wasted his time and efforts.41
