Is it permissible for the owner of the capital (Rabb al-Mal) to halt the Mudarabah (partnership) when he foresees the failure of the endeavor, fearing the loss of the capital?
The basic principle is that (commenda) is a permissible contract, and the capital provider has the right to revoke it, provided that no harm is inflicted upon the Mudarib (entrepreneur). If the Mudarib has commenced work, he might be harmed by the revocation of the contract. Therefore, some scholars are of the view that the Mudarabah then becomes binding until actual or constructive liquidation. If both parties agree to annul it, there is no harm. However, if the worker refuses due to the impossibility of actual or constructive liquidation, the capital provider does not have the right to unilaterally revoke the contract except by a judge's ruling.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/192604
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 192604
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy