We
presently have an online email newsletter service in which we charge for
advertising. We also intend starting an online store and provide other services
to our database of businesses and individuals. Apart from the data base of
emails which took approximately 15 years to develop, there are no start-up
costs for the newsletter service because it is already a running concern. There
will be start-up costs for the online store. Currently, monthly I have to pay
two different service providers for hosting of our website and for the hosting
of a mailer system to send out emails. We also have other expenses such as
telephone, bank service fees, stationery, etc.

I would
like to query whether the following agreement will be a valid mudaarabah
agreement.  I will be the rabbul maal. I will be contributing my existing
database of email addresses. The mudaarib will do the work such as liaising
with clients, designing the newsletters, handling accounts, marketing, sourcing
goods, etc. We will split the profits 50/50.

1. Can I as
the rabbul maal assist in the overseeing of the work that the mudaarib does and
give advice / help where necessary? My involvement may be necessary as the
Mudaarib is yet to learn the business operation side of things and he may
voluntarily want to check things with me before concluding transactions.

2. Will the
payments that I pay monthly be my contribution as the rabbul maal or will they
be regarded as expenses?

3. Will it
be easier to have the agreement as a musharakah instead of a mudarabah? If yes,
how should it be structured?

4. If a
Mudarabah is structured, please clarify what happens in the event of either one
party passing away?

Answer: 

Mudarabah is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise.(Fataawa Hindiyyah Vol. 4 Pg. 285). The scenario mentioned will not be correct as a mudarabah, there must be some cash given from one party to the other. This can however be an ijarah which means to employ the services of a person on wages given to him as a consideration for his hired services. In this case you will be the employer and the other party will be the employee, a fixed wage must therefore be stipulated for the employee, furthermore the monthly payments will be your own expenses.

AND ALLAH TA'AALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST

ANSWERED BY: Najeeb Muhammad 

CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B. 

Islamic Date:٦ ذو القعده ١٤٤٠  English Date: 9 July 2019