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Is the Mudarib liable for the capital in a Mudarabah contract if they collect and operate funds without obtaining the necessary statutory licenses?

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Yes, the Mudarib's act of collecting and operating funds without obtaining the necessary statutory licenses is considered an act of negligence (tafrit), which obligates them to guarantee the capital. This is because the Mudarib's possession (yad) is a hand of trust (yad amanah), and they are not liable except in...

Yes, the Mudarib's act of collecting and operating funds without obtaining the necessary statutory licenses is considered an act of negligence (tafrit), which obligates them to guarantee the capital. This is because the Mudarib's possession (yad) is a hand of trust (yad amanah), and they are not liable except in cases of transgression (ta'addi) or negligence (tafrit).
Source: Radiif.com (رديف) · Saudi Legal AI Platform

Legal References & Citations

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مبدأ قضائي - Article مبدأ

القاعدة الفقهية: يد المضارب يد أمانة لا تضمن ما لم يتعدّ أو يفرّط فإن تعدّى أو فرَّط ضمن

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