Situation of Modaraba

The three situations may be summed up as follows:

1. In case of profit both the investor (e.g individual) and the modaraba company will gain. The gain will be prorata to the investment.


2. In case of no profit. no loss, no one will gain, and the capital of company will be the loser because its labor has gone wasted.


3. In case of loss, the investor will lose his money prorata to his investment, and the company will only lose its labor.