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The question

Is it permissible to conclude a Mudarabah partnership contract on the condition that the effort provider (worker) bears no loss in the capital or profit?

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

The agent's hand in a (profit-sharing) contract is a hand of trust (), not a hand of guarantee (daman). Therefore, he does not bear the loss in profit or capital unless there is an act of transgression (ta'addi) or negligence (taqseer) on his part. Stipulating his guarantee is invalid. As for stipulating that he does not bear any anticipated loss, this is a matter of tahseel al-hasel (stating the obvious) and does not affect the validity of the contract.

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
33123
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