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The question

How should one deal with profits received from a Mudarabah contract in which the other party guaranteed the capital, knowing that guaranteeing capital is impermissible? Should these profits be returned to the other party, deducted from the capital, or spent on charitable causes?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Scholars have differed on whether stipulating a guarantee for the capital in a contract invalidates it or not. The more preponderant opinion is that the contract is valid, while the condition itself is invalid. This void condition must be nullified. The profits generated from this contract are permissible, and there is no obligation to spend them on charitable causes.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
189210
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy