What is the ruling on a contract in which a financier undertakes to fund a project specified by a worker with a ceiling of 500,0 US dollars for a period of two years, with the worker's apartment, valued at 500,0 US dollars, being mortgaged to guarantee the financier's funds, and the worker bearing the loss in the event of project failure or not realizing profits after the agreed-upon period?

The agent in a Mudarabah contract does not guarantee the capital nor bear the loss, except in cases of transgression or negligence. Stipulating a guarantee from the agent invalidates the contract according to many jurists. The correct view within the Hanbali school is that such a condition is impermissible and corrupt, but it does not invalidate the contract itself.

It is forbidden to stipulate that the agent bears losses or repays the funds to the financier if the project fails.

It is permissible to take a check, a promissory note, or collateral from the agent to document the receipt of the funds, provided that he is not demanded to pay it back unless there is transgression or negligence on his part.

The condition of guarantee must be nullified. The owner of the capital does not benefit from the collateral unless a loss occurs due to the agent's transgression or negligence and his inability to cover it. In such a case, the apartment would be sold for the owner of the capital to take his right, and the agent would receive any remaining amount from its price.