Is the profit I earned from the partnership unlawful, knowing that I was not aware that the partner was borrowing to pay off bank loans, and must I dispose of this money?
If a person enters into a partnership in a trade, and it becomes clear that his partner did not trade with the money but rather took it for himself, then the profits obtained by the first person are not permissible for him, and he must return them or consider them part of the capital, because they are not true profits. The encroaching partner guarantees the capital, and the partner's hand is a hand of trust that does not guarantee anything unless there is encroachment or negligence. If the currency's value decreases by one-third or more, the partner has the right to demand compensation for that from the received profits. However, if the currency does not decrease and he receives his capital, then he must return the profits.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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