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Al-Mughni by Ibn Qudama - Edited by Al-Turki
Volume 7 · Page 138829 - Issue: He said: (And the profit is according to what they have agreed upon)

Translation · EN

validity, like the sale of munabadha (casting), mulamasa (touching), and other invalid sales, whereas the 'inan partnership is valid between two non-Muslims or a non-Muslim and a Muslim, unlike this one.

829- Issue: He said: "And the profit is according to what they have stipulated." This means in all types of partnership. There is no disagreement regarding this in pure mudaraba (profit-sharing partnership). Ibn al-Mundhir said: The scholars have reached a consensus that it is permissible for the agent (mudarib) to stipulate to the capital provider a third of the profit, or half of it, or whatever they agree upon, provided that it is known as a specific portion. This is because the mudarib's entitlement to the profit is due to his labor, so it is permissible for them to agree upon whatever they wish, be it little or much, just like the wage in a hiring contract, and like a portion of the yield in agricultural sharecropping (musaqat and muzara'a). As for the 'inan partnership, which is when two people participate with their capital, it is permissible for them to set the profit according to the amount of their capital, and it is permissible for them to be equal even if their capital differs, or for them to differ in profit even if their capital is equal. This is the opinion of Abu Hanifa. Malik and al-Shafi'i said: One of the conditions for its validity is that profit and loss be in proportion to their capital, because profit in this partnership follows the capital, evidenced by the fact that the contract of partnership is valid even if profit distribution is left unspecified, so it cannot be altered by stipulation, just like financial loss (wadi'a). Our argument is that labor is a means by which one becomes entitled to profit, so it is permissible for them to differ in profit while labor is provided by both of them, like two mudaribs working for one person. This is because one of them might be more knowledgeable in trade than the other and more capable of labor, so it is permissible for him to stipulate an increase in profit in exchange for his labor, just as profit is stipulated in exchange for the labor of the mudarib. This is confirmed by the fact that this partnership is contracted upon both capital and labor, and each of them has a share of the profit when [the capital] is separate; thus, the same applies when they are combined. As for the situation where it is left unspecified, since there is no stipulation between them upon which the profit is divided and determined, we estimate it according to the capital due to the lack of stipulation. Once a stipulation is found, it becomes the primary basis to which one reverts, just as in a mudaraba one reverts to the stipulation. If it is absent, and they say: "The profit..."

Notes

(1) Omitted from: [A]. (2) In [M]: "munfaridan" (separately). (3) In [B] and [M]: "yumkin" (it is possible). (4) Omitted from: [Original Manuscript]. (5) In [M]: "wa qala" (and he said).

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