What is the ruling on imposing penalty clauses in Mudarabah contracts when the other party breaches the agreement or causes damages? And what is the ruling on dealing with service offices that offer bribes to complete procedures, and is it obligatory to stop dealing with a partner who practices bribery to release goods from the port?
Mudarabah (commenda partnership) is based on two fundamental principles: a pre-agreed, shared percentage of profit for both parties, and the non-guarantee of the capital. This is because the capital owner bears the loss, while the worker loses his effort, unless the worker is negligent, reckless, violates the capital owner's conditions, or misleads him with incorrect information. If any of these occur, the worker is liable for the damage. Therefore, there is no need for a penalty clause, as the capital owner's right is guaranteed by the clearly stipulated contract. As for dealing with offices, it is permissible under the principle of ju'alah (commission/stipend), as long as it does not lead to seizing others' rights. The forbidden bribe is that which is paid to invalidate a right or uphold falsehood. However, paying money to attain a right or avert harm, if there is no other way to do so, is not considered a bribe for the payer, even if it is a bribe for the recipient. Therefore, if those you deal with pay forbidden bribes, you should cease dealing with them. But if what they pay is to attain a legitimate right, there is no harm in dealing with them.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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