What is the ruling on the rent in a partnership contract for managing a commercial shop—with capital from the other partner—being greater than the actual value, such that the increase is deducted from the net profit before distributing the profits?

For the validity of a Mudarabah contract, it is a condition that the Mudarib (agent) has independent control over the Mudarabah capital and freedom to manage it. He must also have the choice of a suitable location for the project, and his remuneration should be a fair market wage. Therefore, it is not permissible for the capital owner to stipulate that the Mudarib rent his premises for more than the fair market wage, because this falls under the suspicion of stipulating a known sum of money from the profit, which is forbidden in Mudarabah. The jurists have explicitly stated the prohibition of favoring the capital owner in the price of what he purchases from the Mudarabah capital.