2
views
0
recommends
+1 Recommend
1 collections
    0
    shares
      • Record: found
      • Abstract: found
      • Article: found
      Is Open Access

      Critical Analysis on the Essence of Muḍārabah and Mushārakah and Its Relation to Ḍamān

      1

      Malaysian Management Journal

      UUM Press

      Read this article at

      ScienceOpenPublisher
      Bookmark
          There is no author summary for this article yet. Authors can add summaries to their articles on ScienceOpen to make them more accessible to a non-specialist audience.

          Abstract

          The study aims to explore the permissibility of guarantee for muḍārabah and mushārakah based contracts and to discuss in detail the essence of muḍārabah and mushārakah, which both contracts contain the concepts of trust and profit sharing. The study conducted the qualitative research approaches which consist of documents analysis, interviews and observations in few phases. The study found that there are few matters that can be listed as genuine essence of muḍārabah and mushārakah. It also found that the majority of scholars were of the view of prohibiting capital guarantee by partners. It also proved that few statements such as Ibn Taymiyah’s statement were quoted out of context and definitely not appropriate to attribute the stance of those who allowed capital guarantee to him by using his statements, as those statements showed something else. However, a third party may undertake to bear the loss of capital due to misconduct or negligence on the part of the manager for both contracts. The rabb al-māl (capital provider) may also take collateral from the muḍārib, provided that the collateral can only be liquidated in the event of negligence or misconduct or violation of contractual terms by the muḍārib.  

          Related collections

          Author and article information

          Contributors
          Malaysia
          Journal
          Malaysian Management Journal
          UUM Press
          April 29 2020
          : 22
          : 1-18
          Affiliations
          [1 ]Islamic Business School (IBS), Universiti Utara Malaysia
          Article
          10.32890/mmj.22.2018.9668

          All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

          Comments

          Comment on this article