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The question

How is the loss divided between two partners in an agricultural project, considering that one partner provided the entire capital, and the other contributed his effort and acquired experience, in addition to some personal expenses and incurred debts, noting that the initial agreement did not include details of mudarabah (profit-sharing) or loss distribution, and the loss resulted from the working partner's lack of experience in agriculture?

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

The rule in partnerships is that the loss is commensurate with the capital invested. The worker also bears the loss of his labor unless there was an act of transgression or negligence on his part, in which case he alone bears the loss. What the worker receives monthly is considered a nafaqat mudarib (mudarib's allowance), which is permissible according to the Hanafis and some Malikis and Hanbalis if stipulated in the contract or if it is customary practice. As for what the worker borrows for the company, if it was with the partner's permission, it enters into the partnership and is divided between them according to the capital. Otherwise, the debt is on the worker alone. If the debt is outside the company, it is on the debtor alone. It is advisable to present contracts to scholars before concluding them.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
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Ftawy
Original fatwa ID
16740
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