| A
form of quasi-agency in mediaeval trading. It involved a
merchant who, unable personally to attend to a business affair,
hands over some of his property to another party for the latter
to take care of it for him. Upon completion of his task the
outside party, without receiving any commission, profit or
compensation in any other form returns the proceeds of the
transaction to the merchant whose bidding he has done. All
parties to a partnership or mudarabah contract are
endowed with the right to exercise this practice freely because
it is one of the accompaniments of trade. It is often practiced
on reciprocal basis by the merchants for each other. |
