5 Questions
Which of the following best describes musyarakah?
A form of partnership where two or more persons combine their capital or labour together
Which schools of thought consider musyarakah a valid and legitimate contract in Islam?
All schools of thought
What do partners in musyarakah share?
Rights and liabilities
Can musyarakah be formed with only capital?
No
What is the consensus of opinion regarding musyarakah among the jurists?
It is a valid and legitimate contract in Islam
Study Notes
Musyarakah in Islam
- Musyarakah is a partnership contract in Islamic finance where two or more parties contribute capital and labor to a joint venture, sharing profits and losses.
Validity of Musyarakah
- The Hanafi, Maliki, and Shafi'i schools of thought consider musyarakah a valid and legitimate contract in Islam.
Partnership in Musyarakah
- Partners in musyarakah share profits and losses in proportion to their capital contributions.
Forming Musyarakah
- Musyarakah cannot be formed with only capital; it requires both capital and labor contributions from partners.
Consensus on Musyarakah
- There is a consensus of opinion regarding musyarakah among Islamic jurists, with all major schools of thought accepting it as a legitimate contract.
Test your knowledge on Mudarabah, an Islamic financial concept of partnership. Learn about the roles of sahib al-mal and mudarib, and how this form of partnership operates in various ventures.
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