Verified Legal Answer Saudi Law 🇸🇦 العربية

What is the legal basis for obligating the Mudarib to return the capital in a Mudarabah contract?

5 views · 34 minutes ago

Legal Answer

Radiif AI Legal Assistant

⚡ Quick Answer:

The Mudarib is obligated to return the capital in a Mudarabah contract if he breaches his obligations and commits negligence, such as failing to provide the Rab al-Mal (capital provider) with the necessary financial reports and information throughout the partnership period. This negligence renders him liable for the Rab al-Mal's...

The Mudarib is obligated to return the capital in a Mudarabah contract if he breaches his obligations and commits negligence, such as failing to provide the Rab al-Mal (capital provider) with the necessary financial reports and information throughout the partnership period. This negligence renders him liable for the Rab al-Mal's capital in accordance with Articles 554 and 557, third paragraph, of the Law of Civil Transactions. Any amounts previously received by the Rab al-Mal are considered part of the capital and not profits, as profits are not due until after the termination of the partnership and the ascertainment of its profitability, in accordance with Article 560 of the Law of Civil Transactions.
Source: Radiif.com (رديف) · Saudi Legal AI Platform

Legal References & Citations

1
نظام المعاملات المدنية - Article 554

Share this answer:

About Radiif

Radiif is an AI legal platform specialized in Saudi Arabian law, providing answers verified by legal references and articles.

This answer is for general legal education and is not legal advice. Please consult a licensed attorney for your specific case.

Page Stats

Views 5
Citations 1
Language English 🇺🇸

Do you have specific details about your case?

Ask Radiif AI Legal Assistant now and get verified answers with exact citations from Saudi law.

Direct Legal Consultation

Do you want to consult a certified lawyer for this case?

We can suggest a list of certified lawyers with extensive expertise specifically in this domain.