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14. Sleeping Partnership (Muḍārabah)

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  • Ruling 2228

    A sleeping partnership is a contract between two people in which one of them, the ‘owner’ (mālik), provides capital to the other, whom we call the ‘worker’ (ʿāmil), so that he may trade with it and the profits …

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  • Ruling 2229

    A worker is considered to be non-liable (amīn); therefore, in case the property perishes or it becomes defective, he is not responsible (ḍāmin) unless he acts beyond the boundaries of the contract or he is negligent in safeguarding …

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  • Ruling 2230

    A sleeping partnership that is based on the owner giving the worker permission to trade with his property (al‑muḍārabah al‑idhniyyah) is not one of the irrevocable (lāzim) contracts [in Islamic law], meaning that the owner can revoke the …

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  • Ruling 2231

    If a sleeping partnership contract is non-specific and does not mention any particular restrictions, the worker can buy, sell, and decide on the type of goods according to what he thinks is in the best interest [of the …

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  • Ruling 2232

    With a sleeping partnership that is based on the owner giving the worker permission to trade with his property, if the owner or the worker dies, the contract becomes void. This is because if the owner dies, his …

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  • Ruling 2233

    In a sleeping partnership contract, both the owner and the worker can stipulate a condition that the other must do something for him or pay him something. As long as the contract continues and is not rescinded, it …

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  • Ruling 2234

    Any loss or destruction of the sleeping partnership property – for example, it is burnt, stolen, or suchlike – is recompensed by any profits made, whether the profit is made before the loss or after it. Therefore, the …

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  • Ruling 2235

    An owner can invest in things that are sanctioned in Islamic law (mashrūʿ) by way of a ‘reward’ (juʿālah)1 to achieve the same result as in a sleeping partnership; i.e. he can entrust someone with some property and …

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