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although the profit ratio can be set at agreed-upon levels,
which have been predetermined. All partners are agents for
each other with regards to partnership matters, and all are
entitled to participate in the management of the partnership,
although it is permitted that some may delegate this function
to one of the other partners. In line with the profit-with-risk
principle, despite an agreement as to the profit ratio, a
partner may not guarantee the amount of profit that another
partner may derive from the partnership. Conversely, a
partner may not demand another partner to indemnify him
against liability or loss.
In today's context, the musharaka concept is reflected in the
joint-stock company, with the shareholders as partners of the
venture. This concept is also used in multiple-party investor
sukuk issuances.
Mutawalli Sometimes also referred to as a naazir. A person appointed to
have temporal powers of supervision and management over
the mawquf-alaih. He serves in the capacity of a trustee in so far
as the beneficiaries are concerned.
Naazir See Mutawalli.
Nafaqa Financial maintenance for wives, children, and parents.
Qard ul-hasan A gratuitous contract of courtesy involving a friendly loan
without the expectation of any reward for the same. There is a
transfer of ownership of the funds, which indicates that the
lender may not dictate to the borrower the purposes to which
the funds may be used. The loan is also payable when the
borrower is able.
Rushd Mental discrimination
Sadaqa Voluntary and non-compulsory charity or good works on the
basis of ihsan (doing more than required). Charity is not
restricted to financial or monetary giving, but also extends to
those who carry out good deeds. Debt forgiveness is also
considered as a charitable act, particularly when the debtor is
in distress2.
Sahih Valid.
2 Al-Quran surah al-Baqarah verse 2:280