SHAFAQNA – The Grand Ayatollah Sistani answered a question about bailment agreement (Aqd Al-Modharabah).
Question: Is it possible to arrange a bailment contract when the bailee (Aa’mil) is responsible for defined profit and loss?
The Grand Ayatollah Sistani: The bailment agreement/contract can be arranged with the following conditions in order for it to be compatible with the religion. And as these conditions are defined in the contract, they must be fulfilled (Wajibul Wafa).
- The bailee who is the executor of the bailor where supposing there is a monthly profit, each month transfers the defined profit from the initial capital/wealth/property to the bailer.
- If there is no profit, the bailee gives the same amount from his own wealth to the bailor as Hibah (as a gift).
- The bailor’s share from the profit must not be considered as the compensation for the losses which occur afterwards.
- If after the end of the bailment (agreement) or its cancellation, the (initial) capital has been diminished, the bailee must complete it (bring it up to its initial level) with his own capital.
Source: PERSIAN SHAFAQNA
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