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When do profits become due in a Mudarabah contract?

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Radiif AI Legal Assistant

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Profits in a Mudarabah contract are not due until the capital is fully recovered. Any amounts disbursed as profits before the full recovery of the capital shall be considered part of the capital itself.

Profits in a Mudarabah contract are not due until the capital is fully recovered. Any amounts disbursed as profits before the full recovery of the capital shall be considered part of the capital itself.
Source: Radiif.com (رديف) · Saudi Legal AI Platform

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