Sunday, 5 April 2026 (17 Shawwal 1447 AH)
Question: A man gave another money to buy and sell with, with the profit between them half-and-half and the loss half-and-half. What is the ruling?
Answer—and Allah is the One who grants success: The muḍārabah is invalid. The ruling in that, if they dispute, is that the capital and the profit belong to the owner of the capital, and the muḍārib is due the wage of one of equal service (ujrat al-mithl). The worker is not liable for loss, if there is loss. In legal effect he is like a shared wage-earner (ajīr mushtarak): he guarantees what perishes under his hand, except for market loss—he does not guarantee that. If the two parties do not dispute and proceed upon what they agreed, they are not to be opposed.
It may be said: the transaction is valid and the trade is joint between them, as we have previously mentioned in a similar case.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2