Will it be permissible to stipulate that the expenses in a Mudhaarabah partnership will be borne by the mudhaarib, and the profit will be divided acco

Answer

A Mudhaarabah will be valid only if the net profit is shared in terms of pre-arranged ratios. It is not permissible to stipulate any of the expenses on any one of the partners. 100% of the trade expenses must be deducted from the gross profits, and the sharing will be in the net profit.