Does the neighbor guarantee the full price of the cow that died after he mortgaged it for an usurious loan without his partner's knowledge?
This transaction is a legitimate mudarabah (profit-sharing partnership), and the worker is a trustee of the mudarabah capital. He is obliged to preserve it and not transgress against it. Therefore, he is not permitted to mortgage the cow, sell it, or dispose of it for his personal benefit without his partner's permission. Otherwise, he would be considered a transgressor. A transgressor guarantees the trust (property) in his possession, even if it perishes without his direct cause, because by changing his hand from that of a trustee to that of an usurper, he becomes a guarantor in all circumstances. Based on this, this farmer guarantees the price of the cow on the day of its death. The partner will recover his capital (the price of the cow), and any surplus will be divided between them according to their agreement.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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