How to Review a Mudarabah or Murabaha Agreement Before You Sign
A practical checklist for mudarabah and murabaha drafts: profit ratios, ownership, guaranteed returns, and how IFQA’s document analysis maps clauses.
Short answer: Before you sign, check profit ratio vs guaranteed return (mudarabah) and ownership before resale (murabaha). IFQA’s Islamic finance AI can run a structured first pass on a Word/.docx draft. Not a fatwa.
How to review this with IFQA
1. Ask in chat
2. Speak the question
Voice: “Explain clause 7.2 in light of riba.”
3. Upload the document
Upload the draft — see the document analysis pillar.
Scholarly views
Mudarabah checklist
- Profit is a ratio, not a fixed amount of capital.
- Loss (without misconduct) sits on the capital provider.
- The manager’s work is real; no disguised loan.
Murabaha checklist
- Financier buys a real asset.
- Cost and markup are disclosed.
- Possession (even constructive) happens before your purchase.
Prohibitive patterns
Guaranteed capital in a “partnership,” or cash handed to you plus a labeled markup.
How to check your own case
- Highlight every “guarantee,” “profit rate,” and “late interest” sentence.
- Ask who holds title on the date you pay.
- Compare with core concepts.
Related Islamic finance questions
Frequently asked questions
Can IFQA approve the contract?
No. The review is educational and not a fatwa or legal opinion.
What is the most common red flag?
A guaranteed return on capital in a mudarabah, or a murabaha where the bank never owns the asset.
Is this a fatwa?
No. Educational only.
Ask IFQA next
This article is educational and not a fatwa. Consult a certified Islamic scholar and qualified counsel before you sign.