Cheatsheet IBT.

1. IBT CHEATSHEET
MUDARABAH (DOCUMENT POLICY BNM)
CONTRACTING PARTIES CAPITAL OF MUDARABAH PROFIT OF MUDARABAH
• Rabbul mal - Capital provider
• Mudarib - Entrepreneur
• Must be - Natural
person/legal entity with legal
capacity
• Capital
➢ What: Asset provided by
rabbul mal to mudarib
for mudarabah venture
➢ Conditions: Identifiable,
available and accessible
for mudarib
➢ Form: Cash or in-kind
(similar), including
intangible assets
• Profit
➢ Profit is value created
above capital
➢ It is a fundamental
component of
mudarabah
➢ Rules:
 Cannot be fixed in
the form of
percentage
 Cannot be pre-
determined fixed
amount to one party
which deprives the
profit share of other
contracting party
 Does not have to be
guaranteed by
mudarib
 Is shared on a ratio
mutually agreed
• Legal capacity of a person
➢ Capacity to assume
rights and
responsibilities
➢ Capacity to give legal
effect to his action
• Conditions
➢ Possess sound mind
➢ Can distinguish between
what is harmful or
beneficial to one’s
interest
• Capital in-kind - Must be
valued in monetary terms
agreed by contracting parties
• Capital in different currency
- Must be value based on
specific currency agreed by
contracting parties
• Legal capacity of a legal
entity
➢ Eligibility of an entity to
acquire rights and
assume responsibilities
• Debts due to rabbul mal
(either from mudarib or
third party)
➢ Are unqualified as
capital
➢ Are deemed as liability
to rabbul mal
• PSR (Profit Sharing Ratio)
➢ Determined when
entering mudarabah
contract
➢ Can be revised
 Revision must be
mutually agreed by
rabbul mal and
mudarib
• Legal capacity governed
under
➢ Contracts Act 1950
➢ Age of Majority 1971
• All remaining capital upon
dissolution or termination of
mudarabah - Must be
returned to rabbul mal
• Binding if
➢ The terms and
conditions in mudarabah
contract are mutually
agreed between rabbul
mal and mudarib
➢ Does not contravene the
shariah
• Loss
➢ Borne by rabbul mal up
to capital value
➢ Impairement of assets -
Not borne by rabbul mal
except in case of
misconduct, negligence
or breach of specified
terms
➢ Mudarib must give
reasoning for occurrence
of loss
➢ In case of multiple
rabbul mal - loss shall be
born by each rbabul mal
proportionate to their
capital contribution
• Rabbul mal guarantees
capital except in case of
mudarib’s
➢ Misconduct
➢ Negligence
➢ Breach of specified
terms