Transgression refers to carrying out transactions that are not permitted, whereas negligence is to omit what must be done in managing the partnership.

With respect to the expenses and costs incurred in the course of the partnership’s business, they are determined by custom and local practice unless the agreement expressly assigns them to one of the two parties.

Profit always serves as a buffer protecting the principal against damage or loss so long as the partnership remains in force; once the partnership is dissolved, that protection ceases and the profit remains intact. From the moment the muḍāraba contract is concluded, the worker is both a trustee and an authorized agent, and once profit is realized he becomes, in addition to those two roles, a partner as well.

Muḍāraba is a revocable contract, not a binding one: either party may terminate it whenever he wishes, and the worker must then liquidate the assets into cash.

Muḍāraba ranks among the blessed contracts. In a sacred hadith Allah, exalted be He, says: “I am the third of two partners so long as neither of them betrays the other.” Accordingly, truthfulness, sincere counsel, and integrity are indispensable, that the blessing of Allah may descend upon the venture. Allah is the One who grants success.