How are profits distributed upon the termination of a Mudarabah contract?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 2 · Bab 1

Open in Qurani

Primary text

If the contract terminates when the capital is in cash form (naad) with no profit, the capital owner reclaims it. If profit has materialized, the profit is divided according to the terms agreed upon by the parties. If the contract terminates while the capital is in the form of assets (arad), and the parties agree to sell or divide the assets, this is permissible because the right belongs to them and does not extend beyond them.