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The question

Should the questioner demand the full amount from his friend (150,0 pounds + 50,0 pounds in profit), or only the principal amount (150,0 pounds), knowing that the friend squandered the money and did not achieve the agreed-upon profits?

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

If the aforementioned agreement guarantees a specific profit for the mudarib (investor/agent), then this is a corrupt contract considered a usurious loan. Guaranteeing the principal in (profit-sharing partnership) invalidates it by consensus. Since the mudarib did not use the money for its intended purpose but spent it on himself, he is liable for it to its owner, and he is not permitted to take anything beyond the principal. The questioner must return only the principal to the owner of the money, without the aforementioned profit.

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
178220
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