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Is the father, who is the financier of the project, considered the owner and the son his employee, or a partner, especially with the son claiming to have financed part of the project, and how should profits be divided and the contract redrafted to guarantee the rights of both parties?

1 min readAlso available in العربية

This transaction did not involve an agreement on a specific contract with clear conditions. In mudarabah (profit-sharing), there must be an agreement on a pre-determined share of the profit. If the worker mixes his money with the mudarabah money without the owner's permission, he is not considered transgressing according to the Malikis. If the mudarib (working partner) mixes the mudarabah money with his own money, the resulting profit is divided proportionally to the capital.

If both the father and the son have a share in the project's capital, and the son alone is responsible for the work and management of the project, then this transaction combines both partnership (sharikah) and mudarabah. Each share of the capital receives its portion of the profit, and the working partner receives a specific share of the profit in return for his work, unless he voluntarily foregoes some of it. The important thing is to reach an agreement on a specific percentage for dividing the profits that both parties are satisfied with.

The actual scenario involves the pooling of two capitals and the physical effort of one of the owners. Thus, it combines partnership and mudarabah, and it is considered valid.

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

Read the full answer on Ftawy