Musharakah, Mudarabah : in kind capital in Musharakah

Fatawa Question

Assalamualaikum doc, How are you ? I’m Suriani, ex your Master student in Yarmouk University, year 2004-2005. I just want to ask query and get your opinion on the capital contribution for the Musharakah especially in form of in-kind. My queries are as follows :- 1) What are the types of the in-kind can be considered as capital contribution in Musharakah ? Any permissible goods / assets can be a capital contribution in Musharakah as long as it is evaluated by a third party and accepted by all the partners. It is a myth what some narrow minded Shari’ah scholars claim that only cash can be capital. 2) Whether future rental or future income can be considered as capital contribution ? T depends how it is structured : 1) Capital contribution can be paid on installments from future income ; 2) A well-defined usufruct is a property and can be used as principal in Musharakah (you must notice that since Musharakah is a Jaiz contract, I. e., breakable by either party at will, if broken the remaining part of the usufruct is to be distributed like other properties through Takharuj, you may see my book on eBooks of Amazon titled Islamic finance contracts) ; human service cannot be a capital contribution because it then goes under Mudarabah not Musharakah. 3) Whether business opportunity or potential business can be considered as in-kind for capital contribution ? No, because these are speculative. It may then go under Sharikat al Wujuh which has a different system of capital : contributions of partners is in as much as they physically brought resources from the market. Thanks in advance Regards Suriani

Fatwa

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Publication Date

2013-03-02

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Speculation
• Partnerships

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-734617

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