Musharaka by Muhammad Zubair Usmani

Top 20 FREQUENT WORDS

musharakah 29 partners 25 partner 19 profit 16 contract 12 termination 9 agreed 8 assets 8 investment 8 business 7 proportion 7 ratio 7 agreement 6 amount 5 determined 5 distribution 5 features 5 loss 5 rules 5 distributed 4 liquidation 4

DOCUMENT KEY POINTS

jamia darul uloom karachi present at alhuda cibe workshop at nibaf a state bank of pakistan islamabad
the concept of musharakah by doctor muhammad zubair usmani sharia advisor muslim commercial bank ltd

the basic rules and features of musharakah a c musharakah means relationship established under a contract by the mutual consent of the parties for sharing of profits and losses arising from a joint enterprise or venture
a c profits shall be distributed in the proportion mutually agreed in the contract

the basic rules and features of musharakah the existence of muta aqideen partners a c capability of partners must be sane mature and be able of entering into a contract
the ratio of their profit cannot exceed the ratio which their capital investment bears so the total capital investment in musharakah

a management fee however can be paid to the partner managing the musharakah provided the agreement for the payment of such fee is independent of the musharakah agreement
the basic rules and features of musharakah a c it is not allowed to fix a lump sum amount for any of the partners or any rate of profit tied up with his capital

in the latter case the market value of the commodities shall determine the share of the partner in the capital

a c the rate of profit sharing should be determined the share of each partner in the profit earned should be identified at the time of the contract
the basic rules and features of musharakah a c the presence of the commodity this means the price and commodity itself

if the ratio of profit for each partner must be determined in proportion to the actual profit accrued to the business and not in proportion to the capital invested by him
it is not allowed to fix a lump sum amount for any one of the partners or any rate of profit tied up with his investment

per month as his share in the profit and the rest will go to b the partnership is invalid
illustration if a and b enter into a partnership and it is agreed between them that a shall be given rs

observations if a lump sum amount or a certain percentage of the investment has been agreed for any one of the partners it must be expressly mentioned in the agreement that it will be subject to the final settlement at the end of the term meaning thereby that any amount so drawn by any partner shall be treated as on account payment and will be adjusted to the actual profit he may deserve at the end of the term
but if no profit is actually earned or is less than anticipated the amount drawn by the partner shall have to be returned

sharing of loss in the case of a loss all the muslim jurists are unanimous on the point that each partner shall suffer the loss exactly according to the ratio of investment
therefore if a partner have invested of the capital he must suffer of the loss not more not less and any condition to the contrary shall render the contract invalid

termination of musharakah musharakah is deemed to be terminated in any one of the following events every partner has a right to terminate the musharakah at any time after giving his partner a notice to this effect whereby the musharakah will come to an end
but if the assets are not liquidated the partners may agree either on the liquidation of the assets or on their distribution or partition between the partners as they are

termination of musharakah in case of a dispute if there is a dispute between the partners in this matter ie one partner seeks liquidation while the other wants partition or distribution of the nonliquid assets themselves the latter shall be preferred because after the termination of musharakah all the assets are in the joint ownership of the partners and a co owner has a right to seek partition or separation and no one can compel him on liquidation
however if the assets are such that they cannot be separated or partitioned such as machinery then they shall be sold and the sale proceeds shall be distributed

his heirs in this case will have the option either to draw the share of the deceased from the business or to continue with the contract of musharakah

the partners who want to run the business may purchase the share of the partner who wants to terminate his partnership because the termination of musharakah with one partner does not imply its termination between the other partners
termination of musharakah without closing the business if one of the partners wants termination of the musharakah while the other partner or partners like to continue with the business this purpose can be achieved by mutual agreement

Please note, This is an auto generated summary based on sentances position in the document and other factors

DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\islamic banking

KeyWords

contract price sale asset financing lease client purchase ijarah payment profit musharakah lessee amount commodity housing agreement contracts ownership project

DOCUMENT REFERENCES

Number of Pages

17

Published Date

2016-09-17 00:27:40

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Musharaka by Muhammad Zubair Usmani

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Top 20 FREQUENT WORDS

DOCUMENT KEY POINTS

DOCUMENT WORD ANALYSIS

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KeyWords

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