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How are unfinished projects and inventory settled when partners withdraw, and what is the status of the withdrawing partners regarding due profits from inventory and the rights to projects that have not been completed?

1 min readAlso available in العربية

The majority of scholars hold that a partnership contract is permissible (جائز) but not binding (غير لازم), meaning any partner may dissolve the contract whenever they wish. In contrast, the Malikis view it as a binding contract until the capital becomes cash or the agreed-upon work is completed. We recommend adopting the Maliki view to prevent disputes and harm. If the partnership is dissolved before the capital matures or the work is finished, and the capital consists of assets (عروض), the partners may divide or sell them. Profits from completed works are distributed according to the stipulated condition, while for ongoing works, the share of the withdrawing partner is estimated and paid to them upon receipt of the payment. The withdrawal of a partner does not relieve them of accountability for the work and its guarantee.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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