How are profits and losses divided in an investment partnership for raising and selling cattle, where two partners contributed money to build a barn and purchase cattle, and a third partner provided the land and labor, especially since the partnership incurred a loss and one of the partners wishes to recover his money?
The questioner mentioned that the company is based on an investment by two individuals in building a pen on a third person's land and purchasing cows, with the third partner providing his land and caring for the cows. This is called a "Mudarabah partnership" if two or more individuals participate with capital and labor, and the profit is shared between them in a common proportion, while the loss is according to each one's share in the capital.
For a Mudarabah partnership to be valid, the company's capital must be known and present, and each partner's share of the profit must be known. What was mentioned in the question, that the third partner's capital is animal feed, guarding them, and investing them on his land, is considered unknown capital, which leads to the invalidity of the partnership.
If the partnership is invalid, each partner is entitled to his capital and profit, and he owes his partner wages for his work if he had worked in the partnership. Accordingly, none of the investors may take the pen alone; rather, each partner will have his capital and profit, and the landowner will be entitled to rent for the use of his land and wages for his work in guarding and what he spent on feed. It is advisable to consult scholars directly to determine how to divide the assets and distribute rights fairly.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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