Is negligence or transgression cause for guaranteeing only the principal, or cause for guaranteeing both the principal and the growth?
If the mudarib (managing trustee) oversteps or is negligent in the (commenda partnership), he is liable for the principal capital and the profits generated therefrom. The profit in a فاسدة fasidah (irregular/void) mudarabah belongs to the capital provider, and thus its ruling regarding liability is the same as that of the principal capital. Al-Baghdadi stated in Majma' al-Damanat that what is entrusted to the mudarib is a trust (), and if it yields profit, both the capital and the profit belong to the capital provider, while the mudarib is entitled to ajr al-mithl (a reasonable wage). He is liable if he breaches the agreement or is negligent. Al-Fatawa al-Hindiyyah states that if the mudarib mixes the mudarabah funds with his own money before the work and profit, his claim is not accepted, and he is liable for the principal capital and the capital provider's share of the profit if the money perishes while in his possession.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 95504
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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