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What should the two partners do after the loss of a sheep trading project, which was established through the effort of one and the capital of the other, knowing that the loss is borne by the owner of the capital? Is it permissible to give half of the loss to avoid harm? Can the project be continued by calculating the profit after deducting it from the old capital?

1 min readAlso available in العربية

The principle in partnerships is that loss is borne proportionally to capital, and profit is distributed as agreed upon by the partners. If two individuals partner with their money, the loss is divided between them according to the ratio of their capital. If one contributes money and the other contributes labor, the financial loss is borne by the owner of the capital, and the laborer loses their effort, unless they were negligent or derelict, in which case they are responsible for the loss.

If your partner contributed money and you contributed the place, equipment, and labor without charging rent for the place and equipment, then if you donated them, you owe nothing. If the rent for the place and equipment was calculated as part of the capital you contributed, then you bear the loss proportionally to your financial share, and your partner must return to you any excess amount they took. You may optionally bear half of the loss as an act of kindness, but it is not permissible to stipulate this in a future partnership agreement.

To continue the project and purchase another quantity of sheep, the first project must be concluded, and each partner must retrieve their capital, with the agreement that the loss will be proportional to the capital. It is not permissible for a debt to be capital in a new company, because the capital of a company must be cash "in kind," not a debt.

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

Read the full answer on Ftawy