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Islamic Finance




Negligence by the Mudarib


The mudarib’s (mudharib’s) laxity that results in his nonfulfillment of his duties under the contract of mudharaba/ mudaraba (aqd al-mudharaba/ aqd al-mudaraba). This negligence renders him liable to cover losses and/or capital losses because of his failure to do what is required by shari’ah, contractual terms, or customary practices (urf).

In essence, the mudarib does not guarantee the capital and/ losses or of mudaraba.

It is known in Arabic as ihmal al-mudarib (إهمال المضارب).



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